Whether you’re deciding on the flowers for the table arrangements, or agreeing on yet another revision of the guest list, there’s a lot to think about in the buildup to your big day.
When you’re planning a wedding, having the cash on hand to secure bookings can mean the difference between landing your dream venue, caterer, band—or having to settle for a backup option.
And with the average UK wedding costing upwards of £30,000, it’s no wonder that wedding loans are a popular option for financing nuptials.
If you’re thinking about taking out a loan to help ease things but don’t know where to start, then look no further. We’re here to help with our complete financial wedding loans guide. And so, we ask: can you take a loan for a wedding?
What is a wedding loan?
A wedding loan is a personal loan that is being used to help cover the costs of a wedding.
It’s as simple as that whenever you’re wondering if you can take a loan for a wedding. Wedding loans, in short, don’t have any special rules or unique parameters, they are simply unsecured personal loan products that have been designed with weddings in mind.
They’re commonly used as a way to provide an immediate pot of cash, which can then be used to start the planning and booking process, skipping the need to save up for a few years in advance.
Wedding loans can also be used in cases where the reception starts to go over budget. Accordingly, they help you keep things on track and spare any additional stress.
How do wedding loans work?
A wedding loan works very much like any other form of personal loan. First, you find a loan that fits your needs, then you make an application. If approved, you receive the funds and make repayments according to the agreed schedule.
Let’s break each of those steps down a little further.
1. Find your wedding loan
The first thing you’ll want to do is decide how much you need to borrow. If you’ve just started planning your wedding, take the time to do some research on the things you’d like to include, and their typical cost. It might be worth reaching out to a wedding planner for a free introductory session, to get a ballpark of your budget from an expert.
Once you have an idea of the amount you’d like to borrow, it’s time to start shopping around for a wedding loan—this is where we come in.
As a broker, we provide tools that help you to browse and compare lenders, to find a loan that best fits your needs and financial circumstances, with the best chances of getting approved.
To start searching, head over to our free tool to check your eligibility. Simply enter a few details about yourself. We’ll then run a soft search against your credit report, to suggest lenders that are a good fit for you.
2. Apply for a wedding loan
Once you’ve found a lender that you like, it’s time to apply for a wedding loan.
When you make an application, the lender will run a hard check on your credit report and evaluate your application against their eligibility criteria. These criteria will typically include:
- Your income
- Your credit history
- Your debt to income ratio (how much you currently owe in existing debts)
- The amount you are hoping to borrow
If your application is successful, the lender will send you an offer, which you can then review and accept if you are happy with the terms.
As soon as you accept the loan agreement, the money will be transferred to your account and you’ll be able to start putting it towards your wedding.
Can you make a joint wedding loan application as a couple?
While joint loans exist, they are generally only beneficial if you are hoping to secure a higher amount than one of you would be eligible for alone. Otherwise, you’re typically better off having one of you make the application in their own name.
3. Repay the wedding loan
Once you have entered into the loan contract, you will be required to make the monthly repayments outlined in the terms of the agreement.
Once the repayment term has run its course and the debt has been paid in full, along with any interest or additional fees, the loan repayment will be complete and the lender will close your account.
What happens if you miss repayments on a wedding loan?
If you miss repayments on a loan, it can negatively impact your credit score, as well as incur additional fees and charges on top of your remaining debt.
It’s best to avoid missing repayments at all costs. If you ever think you might not make a payment on time, for whatever reason, it’s worth getting in touch with the lender to let them know, so that they can help advise you on any practical next steps.
Advantages and disadvantages of wedding loans
Here’s a quick recap of the key things to keep in mind when it comes to wedding loans.
Wedding loan advantages
- Get the money you need to start planning and booking your wedding right away;
- Flexible options around the amount you borrow and the repayment schedule;
- Repaying on time can help to improve your credit score.
Wedding loan disadvantages
- Interest charged against the debt will mean that you pay more overall than if you paid with savings;
- Missing repayments can negatively impact your credit score;
- You may need to pay early repayment charges if you pay off the debt sooner than originally agreed.
Can you get a wedding loan with bad credit?
Your credit score is a figure that represents your past borrowing history, which lenders use to evaluate whether you are reliable to repay any loans and interest on-time.
A good credit score is a sign that you have frequently borrowed and repaid on time in the past.
Although a lower credit score might increase the interest you pay, or limit how much you are eligible to borrow, it won’t necessarily stop you from borrowing. In fact, there are many lenders that specialise in offering wedding loans for bad credit, which we can help you to find with our free eligibility check tool.
How much can you get with a wedding loan?
With an unsecured personal loan, you are able to borrow between £500 and £35,000 over repayment terms of 1 to 7 years.
This applies for wedding loans too, as unsecured personal loans are the most common loan type used for weddings.
Where to get a wedding loan?
You can apply to get a wedding loan from any loan provider, who will then check your eligibility and decide whether to offer you a loan.
We make it easy for you to find a loan that fits your needs. Simply head over to our eligibility checker and enter a few details to get started in your search.
Are wedding loans a good idea?
Ultimately, it’s down to each individual person to decide what’s right for them, but here’s a quick recap of everything we’ve covered to help you decide.
|What are wedding loans?||Personal loans granted to help fund a wedding.|
|How do wedding loans work?||In the same way as any personal loan:
|How much can you borrow?||From £500 to £35,000, over periods of 1 to 7 years.|
|Is it worth applying as a couple?||While joint loans exist, it’s typically easier for one person to apply.|
Other ways to finance your wedding and save money
Loans aren’t the only way to pay for a wedding, of course. Here are a few other methods worth keeping in mind.
Pay with cash, including support from family and friends
While it’s traditional for the family to help cover the cost of a wedding, it’s not always a luxury that we can all expect.
If you are fortunate to have family offer to contribute towards your wedding, this can go a long way towards paying for the day.
Equally, don’t be afraid to ask friends for support. It might be that you know a photographer, or an expert cake maker, who would be willing to lend their services at a reduced rate for your wedding day. There are countless ways to save money on your wedding that are worth keeping in mind.
Pay with an overdraft
You might have an unused overdraft sitting on your current account, which you could consider as a way to spend as you usually would and later repay the money when you can.
Having said that, you may find that overdraft charges are much higher than you’re eligible for than with a personal loan. Instead, you may want to consider a loan or credit card, so that you borrow and repay your wedding debt on more manageable terms.
Pay via credit card
Credit cards can provide a quick and flexible way to pay for goods and services, as well as the added bonus of security protection on purchases over £100 via Section 75.
The limit you can borrow up to will vary between cards and depending on your credit history, but typically this can be a handy way to stay on top of finances with a more flexible repayment schedule than a loan might offer.
To get started comparing credit cards, head over to our card finder tool and tell us a little about yourself.
Find the right loan for your dream wedding today
Are you ready to bring your dream wedding day to life?
Head to our eligibility checker to start comparing wedding loans and lenders right away.
Simply enter a few details, mark your reason for borrowing as “Getting married”, and we’ll take care of the rest.