Your wedding day is one of the most special days of your life. You can tie the knot with the one you love and share the celebrations with your family and friends. It is a day that you will always remember. If you are wanting to marry your partner, you will soon realise that weddings can be very expensive. It is amazing how everything adds up. From the catering and venue to the decorations and wedding dress, you are going to use a lot of your savings to fund your big day. In fact, a lot of couples simply do not have this kind of money to enjoy their dream wedding. It means they have to delay the celebration for many years.
Introducing wedding loans. This has become a topic of interest for those looking for extra funds ahead of their special day. Let’s learn more about this type of loan and whether loans for wedding expenses is going to be the right option for you.
What is a Wedding Loan?
If you are getting married, you may want to find out exactly what is a wedding loan is. Essentially, they are personal loans that you can use for funding your special day. This type of loan can help you budget for a once in a lifetime ceremony, whether it is in the UK or abroad. You can even use the money for arranging your honeymoon. You are free to choose how you want to use your loan for your wedding. It can be for anything that you need ahead of the special day.
You are able to apply online for a personal loan. Be prepared to make monthly instalments to the lender, which includes an interest rate or APR. This interest rate will vary depending on your personal circumstances and the market. You can choose the amount of money you want to borrow and the amount of time you want to pay back the loan. For example, you may choose to enjoy a 12 month loan. Choosing a loan over a longer period of time may mean you enjoy a better interest rate. Therefore, be prepared to pay a higher interest rate for short-term, small loans. For example, payday loans are known for their high interest rate.
What Lenders Offer This Type of Loan?
There are a lot of lenders that offer this type of loan. When you apply and submit an application, there is a process completed by a representative. They will then inform you whether you have been successful with your loan and you can formalise all of the details. This will include the amount of money you are allowed to borrow, as well as the interest rate. The loan and interest rate you are offered can vary between different lenders.
Is a Wedding Loan a Good Idea?
Your wedding should be special. You plan to be with your partner for life and this means that you only have one opportunity to make your big day memorable and one of the best moments of your life. For some people, having a huge wedding or going abroad for the ceremony is important to them. A lot of people dream about the way they marry their partner. Unfortunately, not everyone has the money to plan their wedding the way they would want it. Perhaps they cannot afford the venue or do not have the savings to book travel abroad. It can be difficult to budget for a wedding even years in advance.
This is where wedding loans can be a good idea. Borrowing a large sum of money can allow you to arrange all of the details for your big day. You can use the money to book your dream venue, cater to all of your guests or even arrange the best entertainment for the reception. It is a good way to access more money that you are able to save for your wedding. This is a good idea if you are able to afford loans for a wedding. If you have a full-time job and are able to afford the monthly repayment, then you can arrange your dream wedding.
However, some people may not like wedding loans. If you are someone that likes to pay for everything ahead of time and relax on the big day, this might not be the option for you. After your wedding is over, you are still going to be making monthly repayments toward your loan. Depending on how much money you borrow, it may feel like forever until you have paid off your wedding. In addition, if you are then saving for a honeymoon after your wedding, you may not be able to do this. It is going to depend on your personal circumstances whether a loan for wedding plans is a good option.
Do you Need a Good Credit Score for Wedding Loans?
Most loans require you to have a good credit score. Lenders want to know that you are financially responsible and will pay back the money you agree to borrow, as well as the interest rate. Before a finance company approves your application, they will look at your personal details. You are required to be over the age of 18 years old and a resident in the United Kingdom to enjoy a wedding loan. In addition, you will need your own bank account. Then they will check your credit score for lending.
A Good Credit Score
Your credit rating is representing by a number up to 999. Good scores are classed as a rating that is over 650. If your score is over 650, a lender is likely going to grant you a personal loan. This number is created by your previous loans and whether you have been financially responsible. For example, if you have had personal loans in the past and paid them back, this is going to improve your rating.
A Bad Credit Score
Of course, if you have made bad financial decisions in the past, this is going to show on your credit rating. It will drop to a lower number and lenders use this as an indication that you may be a risk to lend to for a loan. This might mean that you are not approved for a personal loan.
Your credit will be poor if you have defaulted on a loans monthly repayment before. You can also decrease your score by applying to too many lenders at one time, whether it is for a wedding loan or new credit care. A lender will leave a mark on your record every time they search for you.
Nobody wants to have a bad rating. But you can still apply for a wedding loan and be successful. It may just be more difficult and time-consuming. Some lenders will still offer you loans for weddings UK.
What Types of Loans Could I Consider for My Wedding?
The type of loan you choose will depend on how much money you need for your special day. Let’s take a look at some different options that you could get if you have a regular income and a good credit history.
With this type of loan, you will need a trusted member of your family or friend. They act as your guarantor. In other words, if you are not able to pay, this person would cover your repayments. A loan company is more likely to lend to you if you can prove another person will help you out. This might be an option you want to take for a substantial loan for your big day. However, you may not be comfortable asking someone to help you with repayments.
With a secured loan, you can offer your house, car or other valuable property as collateral. This can be a way of gaining access to larger loan amounts. If you are having a big ceremony and reception, this may be what you need. But it can be a risk if you do not have the money for repayments. Always remember to budget for this type of loan and for the added interest rate to avoid losing your assets.
Do you just need a small loan at the last minute before the big day? Perhaps you want to look into getting a payday loan. This is an option that is good for short-term borrowing; you can choose a small amount and pay it back without one or two months. The only downside is that you might have to pay a high interest rate.
Are There Any Alternative Options for My Special Day?
If you are unable to get a loan, you can try asking your bank for an overdraft on your account. This lets you spend more money than you have. But there can be charges for this option and it is best to discuss all of the details with your bank before you spend the money.
If you have a credit card, you can use this for funding your ceremony or reception. But you will have to make repayments every month and you will need to watch what your credit limit is.