What Do I Need To Apply For A Loan
Every lender has their own criteria when deciding whether to approve a loan, but most will ask you for the same sort of information. For an online loan application, youll need your employment details, including annual income, your bank account details and your address history from the last five years.
At Hitachi Personal Finance our criteria also require borrowers to be aged 21 or over. You must have a bank or a building society account, a good credit history, be a permanent UK resident and be in permanent paid employment or retired with a pension.
Break Down The Budget Into Target Savings Goals
Once you have arrived at an overall budget number, the next step is figuring out how much you need to save monthly or weekly to reach your target. A good formula to determine the budget is as follows: Number of months until wedding x realistic savings each month + contributions and existing savings = total wedding budget, Devlin says.
As you look at the overall budget number, consider how long you have to save for the wedding and think about whether you may get any financial help from friends or family members in planning it. If you have an overall budget of $30,000 and 10 months until you plan to get married, for example, youd need to save $3,000 a month to hit your goal, assuming you have not put aside anything for your wedding yet. However, if your parents are chipping in $10,000 as a pre-wedding gift, that drops the amount you need to $2,000 a month.
When running the numbers on monthly or weekly savings contributions, ask yourself if its realistic. If you cannot hit that savings number together continuously, then you have two options: Downsize the wedding to reduce the costs or consider delaying the wedding to give yourselves a longer window to stash away savings. The second option may not be ideal, but it could be the better choice if you dont want to take anything away from your overall wedding vision.
Banks Offer A Wedding Loan
Banks offer their clients several wedding loan products. You can get a wedding loan or take out any similar credit to organize a wedding. The point is that a wedding loan helps young couples to solve the financial problems associated with the celebration. This is a targeted loan that has fairly low-interest rates. It is easy to arrange unlike other methods of financing. In fact, a wedding loan is a profitable type of consumer loan.
Nowadays many couples are faced with offers from wedding agencies offering a wedding loan. You need to understand that any loans are formalized in banks and agencies are only intermediaries. Therefore, to apply for a wedding loan, it is advisable to contact the bank itself.
Also Check: Where Can I Find A Nice Dress For A Wedding
Save And Pay For It Yourself
This is the most unglamorous of all options, its the diet and exercise of finances. On the plus side, you and your spouse will get to your wedding day knowing you didnt have to rely on anyone else, and that you have no post-wedding bills to pay. But depending on how fast youre able to save and your wedding budget, you could be delaying your wedding for a long time, which is why a lot of people dont opt to a hundred percent save and pay for their own weddings. Most peopleincluding myselfdo some level of saving, but have to supplement their savings with other means.
A friend described their choices this way:
My fiancé and I pooled our savings and set aside an amount for the wedding. Were both anti credit cards. We considered our wedding budget as a regular line in an expense sheet in the grand scheme of financial planning. I learned early on to take out emotions when it comes to finances. The hard line kept us within budget. I couldve had some allowance for a fancier dress or vintage champagne, but decided to use the money for more long-lasting investments.
Drawbacks Of Getting A Wedding Loan
- Extra monthly expense Before you sign a personal loan agreement, consider using a loan calculator to determine your potential monthly payment to make sure its truly something you can afford.
- Potentially high interest If you have poor credit, you could end up paying a steep interest rate, which can significantly increase the cost of borrowing money. For example, if you take out a $10,000 loan at a 20% interest rate for 24 months, you could end up paying about $1,470 more than you would if you had a 7% interest rate.
You May Like: How To Plan A Really Cheap Wedding
Settle For A More Realistic Dream
So this isnt a piece of advice you want to hear. I know its not one I wanted to hear. Personally, my dream wedding would be a grand ceremony in Alaska . But my fiancé and I have learned to love the idea of having an outdoor wedding in the Maine woods and were doing the decorating and catering ourselves .
There comes a time when taking out a loan or opening a credit card for a $50,000-dollar wedding just doesnt make sense. You can have a great weddingeven the wedding of your dreamsfor a lot less. You just need to identify which part of your wedding is most important to youbesides marrying the love of your life, of course.
Here are a couple tips on how to have your dream wedding on a budget:
Opting For A Personal Loan
If someone says that shes getting a wedding loan, chances are, shes referring to a personal loan. If you dont have collaterallike a homethis may be a strong option for you. Most financial institutions, including local and nationwide banks, credit unions, and even some online banks, offer personal loans. To help determine the interest rate that you ultimately land, lenders will use your credit history. The higher your , the lower your interest rate.
While rates for personal loans are fairly low, they are more costly than what you will pay for a mortgage or a home equity line of credit. Thats because a personal loan is unsecuredmeaning that there is no collateral held in exchange for lending you the funds.
While interest rates on personal loans run in the mid- to high-single digits, theyre still substantially lower than what youd pay by charging your wedding expenses on a credit card. This explains why in just about every situation, its better to get a personal loan than to put the charges on your plastic.
You may also want to consider peer-to-peer lenders such as Prosper or Lending Club. These lenders often offer lower interest rates than a bank. Services like can help you sort easily through various loan options by matching your credit profile with the lowest cost loans that suit your needs.
Don’t Miss: How To Keep Track Of Wedding Rsvps
Find Out If You Prequalify Today
Loan approval is subject to confirmation that your income, debt-to-income ratio, credit history and application information meet all requirements. Loans are unsecured. Loans are fully amortizing personal loans as long as you pay on time.
You must have a minimum household income of $25,000 to be considered for a Discover personal loan. It cannot be used to pay for post-secondary education, to pay off a secured loan, or to directly pay off a Discover credit card.
Your APR will be between 6.99% and 24.99% based on creditworthiness at time of application for loan terms of 36-84 months. For example, if you get approved for a $15,000 loan at 6.99% APR for a term of 72 months, you’ll pay just $256 per month. Our lowest rates are available to consumers with the best credit. Many factors are used to determine your rate, such as your credit history, application information and the term you select.
We may charge a fee if your payment is late.
Use This Simple Math Equation
If you have a big budget goal that seems daunting, divide it into smaller chunks that are easier to digest. The simple math trick that makes it all work? Take the sum of your desired budget and divide it by the number of months you have to save up. Getting married in a year with a budget of $20,000? Divide $20,000 by 12 . If that amount seems like too much per month, add more time or try cutting back on a few of your big-ticket monthly expenses to help you save. “That’s literally how simple planning for a wedding can be,” says David Bach, founder and chairman of FinishRich Media and author of Smart Couples Finish Rich, about this relatively simple math.
You May Like: How To Measure For A Wedding Dress
How Soon Can I Get My Loan
If you’ve been approved, you’ll receive some important documents within five days, which you’ll need to check, sign and return to us.
If you apply online, youll get an immediate decision and, if eligible, can digitally sign your loan agreement with us. Well then use Faster Payments to send the money directly to your bank account.
Once we’re happy with the information you’ve sent, we’ll fully approve your loan and pay the money into your bank account.
Why Choose A Shawbrook Wedding Loan
Every couple is unique. And, with Shawbrook, every wedding loan is too.
We believe in doing things differently. So, unlike many high street banks, we consider each application individually.
Weddings and honeymoons can be expensive but spreading the cost can help you start your married life with fewer financial worries. Having access to cash to pay for venues, caterers, photographers etc. can even help you negotiate a better price.
Read Also: What To Wear To A Backyard Wedding
Personal Loans For Weddings: Financing Your Marriage
Wedding loans can come with fast funding and lower interest rates compared to credit cards.
Edited byAshley HarrisonUpdated August 30, 2021
Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”
While weddings tend to be joyous affairs, they can also be very expensive couples say theyre budgeting $22,500 to pay for upcoming weddings in 2021, according to The Knot.
If you dont have this much cash on hand, a wedding loan could help you cover the cost.
Heres what you should know about wedding loans and where to find them:
Wedding Loans For Bad Credit
A low credit score should not prevent you from making your big day a successful event. These payday loans for bad credit are advanced to individuals with a low credit score and can either be secured or unsecured. Having a low credit history means your loan will attract high interest. This type of loan should be the last option.
The golden rule for wedding financing is to borrow what you need. Avoid taking a larger loan just because you qualify for one. Unnecessary debt will delay your journey to financial freedom and strain your marriage.
Recommended Reading: How To Celebrate 50th Wedding Anniversary
What To Consider When Getting A Wedding Loan:
- Wedding loans can lead to couples spending more on their wedding than they may have if they had to have the money upfront.
- If you dont pay your loan back in time and in full it can hurt your credit score and cost you even more money in added interest.
- Not all lenders are the same make sure you fully understand the details of the loan before accepting any money. While there are legal protections in place to help curb unfair lending practices in the United States, an unscrupulous lender might use loopholes to charge predatory interest rates.
What Costs Can A Wedding Loan Cover
During the application process, you might be asked how youll use the funds. However, any personal loaneven ones not specifically marketed as wedding loanscan be used to cover wedding-related costs:
- Dresses and suits
Lenders typically offer a maximum amount available to you, but you dont need to borrow that much. Remember that youll have to repay every dollarplus interestso its smart to minimize your borrowing.
Lendingpoint: Good For Borrowers With Low Income Or Credit Scores
LendingPoint offers personal loans of up to $36,500 to borrowers in 48 states, with a minimum income requirement of just $20,000 and a near-prime credit score requirement.
- Loan amounts: $2,000 to $36,500
- Repayment terms: Two to five years
See your personal loan rate options on Credible with no effect on your credit score.
Wedding Loans In A Nutshell
Wedding loans come in all shapes and sizes. Here at Freedom Finance, our lenders can offer personal unsecured loans of up to £25,000. If youre a homeowner, secured loans might also be an option for you. This type of loan typically allows people to borrow larger amounts over longer repayment terms.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Also Check: Is E Wedding Bands Legit
Home Equity Line Of Credit
If you and/or your intended own a home, look into a home equity line of credit . It uses your home as collateral and, because it is a line of credit, you can borrow only what you need. You don’t have to take the money in a lump sum. Here’s how most HELOCs work:
- A lender looks to see how much equity you have in the home. For example, if the home is worth $250,000, but you owe $150,000, you have $100,000 in equity. Typically, they will loan up to 85% of the equity in the house, or in this case, $85,000.
- You can then use that line of credit to withdraw up to that amount for a set period of time, usually 10 years. During that time, once you repay any portion of the HELOC, you are free to withdraw it again as needed. You’ll then have 10 or 20 years to pay back those funds, depending on the loan.
The good news is that a lender will likely offer you a competitive interest rate because they have your home as collateral. The bad news is that if you miss loan payments, they have the right to repossess the property.
Tips To Save On Wedding Costs
If you find yourself turning to wedding loans to finance a large portion of your wedding, stop to think about whether theres any way you can trim costs without sacrificing the important parts of your big day.
Here are just a few ways to bring the price down without putting yourself into debt:
- Pick an off-peak day such as Friday or Sunday.
- Limit open-bar offerings to wine and beer.
- Design and print your own invitations.
- Host the ceremony and reception in the same location.
- Choose a minimalist wedding cake.
- Replace flowers with candles.
- Buy a wedding dress that doesnt have a lot of embellishments.
- Limit professional photography to a few hours.
- Use standard place settings and linens.
- Serve a buffet-style dinner.
Recommended Reading: How To Plan A Wedding In 2 Months