Thinking of how to quickly make that deposit and snag that dream wedding venue? Feeling awkward about approaching your folks for a little loan to cover those hidden expenses that caught you by surprise? A wedding loan could be one of the most convenient ways to provide a quick fix to your wedding woes. As you may have guessed, a wedding loan is a kind of personal loan that specifically addresses your wedding-related financing needs. But just like any other kind of loan (and most other things for that matter), a wedding loan can either be an asset or a liability, bringing bliss or misery depending on how you handle it. Before dreaming up how you will be spending that windfall of money from the wedding loan, there are just a few things to consider before signing away on that application form.
Your Credit-worthiness
While taking out a wedding loan could afford you all those little finishing touches that could spell the difference between a gaudy wedding and a much more elegant one, first check out if you are a good candidate for such a loan.
1.Can you afford it?
How will you make the regular payments on your wedding loan? Will your husband-to-be be a co-payer? To avoid making your wedding loan a major post-wedding dampener on your relationship, clear out all possible issues from the start. It would be ideal if your payment design does not hinge solely on a single active income. This will ensure that you will not renege on your financial commitments to your lender should either you or your partner lose your job. It will also help you rest easy if you know that your ability to pay your loan is not dependent on one income stream. Having a Plan B, or even a Plan C, is never a bad idea.
2. Can you handle a worst-case scenario?
Fast forward to the future, and the market plunges. You and your husband suddenly find yourselves out of your jobs and unable to pay your mortgages. In such an event, do you have assets that you can liquidate to pay off your lender? How about emergency savings? Nine months’ worth of living expenses tucked away in a savings account can help you get over what you hope is just a momentary hump in the road.
3. Can you pass the marshmallow test?
We’re talking about character here — the discipline and foresight to let go of instant gratification (snagging that latest designer bag on sale, “downgrading” from a buffet spread to an ala carte menu for your birthday, even cutting back on your daily Starbucks fix) to eventually obtain and enjoy something of greater and longer-lasting value. If you can confidently say yes to all of these questions, then, by all means, forge ahead. Read up and enjoy all the benefits of taking out a wedding loan — because there are quite a number of them. Taking out a wedding loan could be the next best thing for your peace of mind (coming a close second to that time when you and your fiance finally agreed on the wedding guest list) as you continue your preparations for the big day.
Advantages of Wedding Loans
Wedding loans, like any other personal loan, have clear advantages over other types of loans. Here are a few good reasons why taking out a wedding loan could be beneficial
1.Gives you lower interest rates versus those of credit cards
In the year 2020, the average credit card interest rate in the U.S. was 16.28%. With a good credit score, expect the average interest rate for personal loans to be between 9% to 13% — and this can be even lower for individuals with higher credit scores.
2. Grants you the opportunity to get a credit score
No credit history yet? Taking out a loan and responsibly making timely payments can put you in good credit standing with lending institutions. This will allow you to create a strong credit History, making it easier for you to secure future loans at even lower interest rates.
3. Has faster processing
The turnaround time to process a wedding loan can be as little as 24 hours or even less. The reason for this is that there are fewer qualifiers compared to other types of loans. Like all other personal loans which are unsecured, you don’t need to come up with any collateral. And because there are fewer restrictions, applying for a wedding loan can be conveniently done online.
4. Gives you a fixed term
Unlike your credit card term with a boundary more elastic than an infinity pool, wedding loans come with a fixed term. This will help you avoid debt situations that can spiral out of control.
5. Allows you to go “all-out” in a snap (within reason, of course!)
If you can’t wait to start “forever” with the love of your life, maybe you only need this one delicious reason to be convinced to secure a wedding loan: you no longer have to save up for years for that dream wedding. Getting that wedding loan will enable you to afford those little expensive flourishes. Now you can hire that uber-efficient wedding planner. Perhaps money can buy you some momentary happiness – and some of that elusive peace! Go ahead and savor the rest of the possibilities that taking out a wedding loan can allow you to dream up and seriously consider:
Expense items covered by wedding loans
With the confidence of a financially savvy bride with a clear debt-payment strategy and strong resolve to stick to the targeted wedding budget, you can now muster the courage to turn your dream wedding into a reality with the following ideas:
1. Get hold of that gem
Purchase that exquisitely popular engagement ring. You can save the “something old” tradition for your mom’s delicate tulle veil and reserve the “something new” for that gorgeous engagement ring.
2.Get your hands on that dream wedding dress
You can now have that premium wedding look with high-quality fabric. How about those wedding buttons? Have them covered in satin. What about those little pearl embellishments — maybe you can add a little more to the hemline? Go ahead and indulge in those little details that make a big difference to your overall look.
3.Get a good photographer
Did your wedding loan take into consideration the services of a good photographer? Go ahead and make that call! After all, the beautiful memories saved in those breathtaking photos will last you a lifetime.
4.Make those bookings
Secure the deposits needed to make reservations for the most coveted wedding venue or the most in-demand caterer in the city. With the fast processing of your wedding loan, no longer shall you fret because your bookings are all set!
5. Extend that wedding guest list
You need not worry anymore about which cousin to take out of your wedding guest list or consider who is most likely to hold a grudge from not being invited. Just keep in mind that more may not necessarily be better ambiance-wise and in the long term (financially speaking).
6. Book that indulgent honeymoon
As much as you would want to accept your BFF’s offer to stay for free at her out-of-town condo, maybe you can ask her to reserve that for when you need a quick break from work. If you have the money to spare, it would be a great opportunity to make some of the most precious memories as newlyweds. Seize the moment to savor a few luxurious firsts for both of you. Wouldn’t that be a great jumpstart to married life?
7. Pay for emergency wedding expenses
Imagine not worrying if you need to book an extra room or two for your in-laws or not having to be anxious about the wine running out? Freedom from worrying about those unwanted surprise expenses during your wedding day is one of the benefits that come with taking out a wedding loan. And peace on your wedding day is something you definitely can’t put a price on.
