Taking out a loan for a wedding is not a hard thing to do these days. A wedding loan is really a personal loan that you decide to use for wedding expenses.
There are various types of personal loans that just about anyone can obtain these days. There is, of course, the standard, traditional way that requires good credit and possibly collateral. You can also obtain wedding loans for bad credit. With these loans, there will be higher fees and interest rates. With bad credit comes higher risks. Thus, lenders who accept bad credit, personal loans will charge higher fees and interest rates to cover their company. Nevertheless, there are advantages and disadvantages of taking out a loan for a wedding even with bad credit.
Advantages of Getting Loans for Wedding Expenses
When it comes to wedding finance, there are tons of advantages. It just depends on the terms of the loan and how you work things out with your budget, credit, and more. The following are the pros in taking out a loan for a wedding:
- Less stress in wedding planning
- Less obligation of the parents to cover expenses
- More money for the honeymoon or a home down payment
- A personal loan is usually short-term which is paid off in five years or less.
- The chance to improve your credit upon paying back on-time.
Disadvantages of Getting Loans for Wedding Expenses
As with everything, there are pros and cons to wedding finance loans. The following are the cons when taking out a loan for a wedding:
- There is a higher APR on unsecured personal loans than with secured loans.
- Beginning marriage life with debt is not so good.
- Delay in starting a family or obtaining home ownership is possible due to getting a loan.
- The temptation to recklessly increase your budget to a certain degree is there.
Tips on Taking out a Loan for a Wedding
Budgeting may not be a romantic thought when thinking about your wedding and the honeymoon; however, it is vital to ensure you have the best wedding and honeymoon without the added stress. With this in mind, you can find certain things for wedding decorations, the food, flowers, wedding gown, bridesmaid gowns, the tuxedos, and more. You can find discounts, second-hand clothing stores, and rental stores for the wedding garments/equipment, and more. You can also borrow from some family/friends. When it comes to the food, it may be more affordable to hire family /friends to make the food for you which is more affordable than hiring catering services. In some cases, some family/friends may not charge you at all, depending on how close or generous they are feeling. You can also cut down on all/some extras, such as inviting fewer people, reducing the number of decorations, etc.
After doing all of that, you can determine if you still need to get a loan. Furthermore, after budgeting strategically, you can see that you won’t need as much of a personal loan as you previously thought. With this in mind, you will have time to review which personal loan lender has the best offers for you and your spouse-to-be. You can determine whether there are even more ways to reduce costs by putting things in layaway, finding sales, checking for yard sales, and being able to finance through some merchants.
When searching for the right personal loan for you, there are more things to consider besides the APR and other fees. You must consider the term of the loan repayment. This will be the number of months to repay the loan. You also must consider the monthly payment.
One good example is personal installment loans. These loans are usually more reasonable with fees, and the number of months needed to pay the loan off.
There are pros and cons to all personal loans. However, when following the steps above, you can make the best in obtaining loans for wedding expenses.