Wedding loans are loans made for getting people wanting a married life who need more money to cover all aspects of this event. These loans are meant to help pay for things like renting the place where the wedding will happen, food, pictures, etc.
Many people use wedding loans because weddings can be expensive, and they might need more money to pay for everything at the start. Some people like wedding loans because they can pay for things slowly over time instead of all at once. Wedding loans are popular because they help people deliver for their wedding without using their savings or credit cards.
Best Wedding Loans Of 2024
There are many services in the market today that provide loan services. But how to find the best wedding loans of 2024, which will also be the most suitable for you with the best terms? Here we are to help you.
We have done the work for you and selected the best wedding loans available. We have compared the loan conditions of most lenders available and created a list with many personal loan lenders that are highly rated and provide loans to cover wedding expenses so you to get to the point easier.
SoFi
SoFi is an online lending company that offers personal loans, including the best wedding loans, to qualified borrowers. Potential borrowers complete an online application process to apply, and SoFi evaluates their creditworthiness to determine eligibility and loan terms. The average APR is between 5.99% and 22.69%.
SoFi does not charge any fees for origination, late payments, or other penalties. Borrowers can get from $5K to $100K loan amount. The repayment term is between two to seven years. To qualify for a SoFi wedding loan, a borrower must have a minimum credit score of 680 and provide proof of income, identification, and residence.
SoFi Benefits and Disadvantages
Pros of SoFi include:
- Competitive interest rates.
- No fees.
- Joint wedding loan.
- Flexible repayment terms.
- Simple online application process.
Cons include:
- A higher minimum credit score requirement than other lenders.
- Limited availability in some states.
- A potentially longer processing time for loan approvals.
Upstart
Upstart is a website with wedding loan lenders that operate online and focuses on providing personal and the best wedding loans to people with fair credit to excellent credit scores. To assess a borrower’s creditworthiness, Upstart uses a unique underwriting model that takes into account factors like education and job history.
Upstart’s APR for wedding loans ranges from 7.8% to 35.99%, depending on the borrower’s creditworthiness. There are no origination or prepayment fees, but they do charge late fees.
Borrowers can get from $1K to $50K. The repayment terms range from three to five years. To qualify for an Upstart loan, a borrower must have a minimum credit score of 600 (bad credit) and provide proof of income, identification, and where they live.
Upstart Benefits and Disadvantages
Pros of Upstart include:
- A fast and easy online application process.
- Flexible repayment terms.
- Using non-traditional factors to evaluate creditworthiness.
Cons include:
- Higher rates for some borrowers.
- Late fees.
- Potential limitations on loan amounts in certain states.
Upgrade
Upgrade is a service with online lenders that provides most personal loans, including the best wedding loans to cover wedding expenses, and debt consolidation, to borrowers with fair credit to good credit score.
The company uses technology to simplify the application process and determine a borrower’s creditworthiness. Upgrade’s APRs for fair credit range from 6.99% to 35.97%, depending on the borrower’s creditworthiness. The lender charges an origination fee (2.9% to 8%), but no penalties exist.
The Upgrade provides loan amounts from $1K to $50K. The repayment terms are from three to five years. To qualify for an Upgrade wedding loan, a borrower needs bad credit (minimum credit score of 600) and must provide proof of income, identification, and bank account information.
Upgrade Benefits and Disadvantages
Pros of the Upgrade include:
- Quick and easy loan application and direct payments.
- Flexible repayment terms.
- Joint loans are available.
- Available for bad credit users.
- No prepayment penalties.
Cons include:
- The origination fee.
- Higher rates for some borrowers.
- Potential limitations on loan amounts.
Read Also: Upgrade Review
LightStream
LightStream is an online lender that offers personal loans, including the best wedding loans, to borrowers with good to excellent credit. The company prides itself on offering low rates and fast funding.
LightStream’s personal loan rates for wedding loan amounts range from 2.49% to 19.99%, depending on the borrower’s creditworthiness. There are no origination, prepayment, or late fees.
LightStream personal loan products are in amounts from higher minimum loan amounts—$5,000 to $100,000, with two to seven years of repayment terms. To qualify for a LightStream wedding loan, a borrower needs a low credit score of 660 and a stable income, and good credit history.
LightStream Benefits and Advantages
Pros of LightStream include:
- Competitive rates.
- No fees.
- Quick application process.
- Available soft credit inquiry.
Cons include:
- The requirement for good credit.
- Potential limitations on loan amounts.
- Longer repayment terms than some other lenders.
Best Egg
Best Egg is an online lender that provides personal loans, including the best wedding loans, to borrowers with fair to excellent credit. The company’s application process is entirely online, and borrowers can receive funds in as little as one business day. Best Egg’s APR for wedding loans ranges from 5.99% to 29.99%, depending on the borrower’s creditworthiness.
The Best Egg lender charges an origination fee of 0.99% to 5.99%. With Best Egg lender, you can get loans from a high minimum loan amount of $2,000 and the high maximum loan amount of $50,000.
The repayment terms are between three to five years. To qualify for a Best Egg loan, a borrower needs a minimum credit score of 600 and a minimum annual income of $35,000.
Best Egg Benefits and Disadvantages
Pros of Best Egg include:
- Fast funding.
- Flexible repayment terms.
- The ability to pre-qualify without affecting your credit score.
Cons include:
- The origination fee.
- Potentially high APRs.
- The requirement for a minimum credit score.
Discover® Personal Loans
Discover Personal Loans is an online lender that offers you a personal loan for various purposes, including weddings. With Discover Personal Loan, customers can get loans in amounts between $2,500 and $35,000. The price is has fixed rates, and no collateral required.
Repayment terms vary from 36 to 84 months, allowing customers to choose the best time for their budget. To qualify for a Discover personal loan, borrowers must have a minimum credit score of 660. They also should meet the lender’s income and creditworthiness criteria.
Discover Personal Loan charges no origination fees or prepayment penalties. The lender offers competitive APRs that are lower for borrowers with good credit scores. The application process is simple and fast, with funds available as soon as the next business day after approval.
Discover Benefits and Advantages
Pros:
- No origination fees or prepayment penalties
- Competitive APRs for customers with good credit scores
- Flexible repayment terms
Cons:
- Not available in all states
- Higher APRs for customers with lower credit scores
- Limited loan amount compared to some other lenders.
Read More: Review of Discover Personal Loans
How to Compare Wedding Loans
When comparing wedding loans, it is important to look at several things: the loan’s annual percentage rate (APR), fees, repayment terms, and loan amount. Another important thing is the lender’s reputation and customer service.
Getting pre-approved for a loan is advisable to check out what terms and rates you may qualify for. It is good to compare multiple lenders and loan offers before applying.
It will help you find the best lenders with available loans and save money on covering wedding costs in the long run. You should also read online reviews, check lenders with the Better Business Bureau, and ask for recommendations from friends or family. These sources can provide valuable insights to make an informed final decision.
Compare APRs
APR (Annual Percentage Rate) is the paying interest you’ll pay annually on your loan, plus any applicable fees. You should look for the lowest rate when comparing APRs between loans. Pay attention to whether the rate is fixed or variable, as variable rates may change over time.
When comparing rates, make sure you’re comparing the same loan term, as a longer term may have a higher overall interest rate. You should also consider any extra fees that may affect the total cost of the loan.
It may be origination fees or late payment fees. By comparing APRs, you can evaluate which wedding loan provides the most advantageous value for your financial needs.
Check Available Fees
When comparing wedding loans, it’s essential to look for any additional fees that may affect the loan cost. Some standard fees may include origination fees and late payment fees. Here are some ways fees can be charged.
- Lenders charge origination fees for processing the loan, typically a percentage of the loan amount.
- You might be charged late fees if you fail to meet payment deadlines.
- Prepayment penalties may apply if you pay off the loan beforehand.
While comparing loan options, keep an eye on the fees charged and consider how they could influence the loan cost.
Look For Repayment Terms
To compare wedding loans, you need to see how long you have to pay the loan back. This is called the repayment terms, and it’s different for each lender. Longer repayment terms make monthly installments smaller, but they can add up to more interest over time. Conversely, shorter repayment terms sometimes result in higher monthly payments.
Although, the total interest paid will be less. While comparing repayment terms, evaluate the affordable monthly payment and the desired time to pay off the loan. Always read the loan agreement carefully to understand all repayment terms, including such fees as origination fees or late payment fees.
Read Reviews
Reading reviews is crucial when comparing wedding loan providers. Reviews provide insights into other borrowers’ experiences and can help you gauge the reliability and trustworthiness of a lender. Look for reviews on multiple platforms and consider both positive and negative feedback to gain a balanced perspective.
Pay attention to comments about customer service, the loan application process, and the lender’s responsiveness. Assess whether the majority of reviews indicate a positive or negative trend.
It’s also helpful to check if the lender has received any accreditations or awards, indicating their commitment to excellent service. Reading reviews empowers you to make an informed final decision about choosing a wedding loan provider with a strong reputation and satisfied customers.
What Is A Wedding Loan?
A wedding loan is a loan that can pay for all your wedding expenses. The average wedding cost could include renting the venue, wedding gifts, hiring a caterer, getting a photographer, buying flowers, and for the first months of married life. You don’t need to give anything valuable as security for the loan, which is called collateral.
If talking about the loan amount and pay interest, they are based on several factors: credit score, annual income, and other personal details. If approved, you’ll receive the loan, which you can use to cover wedding expenses.With time, you’ll need to repay the loan over a specific period.
The average repayment period is typically between one and seven years. Wedding loans can be an excellent way to pay for a dream wedding without using your savings account or credit cards.
Cost Of Wedding Loan
A wedding loan’s total cost includes the principal amount borrowed and the interest charged over the repayment period.
To calculate the price of a wedding loan, you can use an online loan calculator that factors in these variables. For example, you borrow a $10,000 wedding loan with an interest rate of 7%.
The repayment term you choose is three years. Your monthly payments would be approximately $311. Therefore, the total amount you should pay for the loan would be $11,180. You should also remember that some lenders may charge additional fees.
It may include late payment or origination fees, which can impact the overall cost of the loan. That’s why it’s essential to compare loan offers carefully and read the loan agreement to understand all associated fees and costs.
Read Also: How to Finance Engagement Ring
When To Get a Wedding Loan
Getting a wedding loan may be a good option for couples who want their dream wedding but need more savings to cover all the wedding costs. A wedding loan can help finance the costs associated with this important day, such as venue rental, catering, photography, and flowers.
But it’s best to only get a wedding loan if the couple can easily repay the money monthly or already have a lot of debt. It’s important to remember that taking a wedding loan to cover wedding costs could delay other financial goals like buying a house or paying off student loan proceeds.
Before deciding to get a wedding loan, couples should carefully consider if it’s worth it and if there are any potential problems or risks.
Does Wedding Loan Impact My Credit Score?
Yes, a wedding loan can impact your credit score. When you apply for a wedding loan, the lender will likely do a soft credit inquiry on your credit report, which can temporarily lower your credit score.
It’s essential to ensure you can afford the fixed monthly payments before taking out a loan to avoid damaging your credit score. Additionally, too much debt can negatively impact your credit score, so weighing the benefits and risks of taking out a wedding loan before deciding is essential.
How To Get a Wedding Loan
Getting a wedding loan can help couples finance the average wedding attributes without using their savings or credit cards. However, sometimes it may be confusing if it is the first online loan. So, here we have created a step-by-step guide on getting a wedding loan.
- Know Your Credit Score. You should check your credit score before applying. It will help you understand what kind of interest rates and terms you may get with the loan.
- Compare Lenders. Look for lenders who offer wedding loans and compare their interest rates, loan terms, and fees. Research the lender’s reputation by reading reviews and checking their ratings with the Better Business Bureau.
- Choose the Best Lender. After comparing lenders, choose the one that offers the best loan terms and suits your needs and budget.
- Check Requirements. Make sure to review the lender’s requirements for the wedding loan. They may have specific rules such as needing a certain credit score, minimum income, or maximum amount of debt compared to your income. It’s important to meet all these requirements before applying to avoid the chance of being declined.
- Prepare Documents. Gather all the necessary documents for the loan application. Those are proof of income, bank statements, and identification documents.
- Apply. Fill out the loan application with the chosen lender. Please provide accurate information and double-check all the details before submitting it. The lender may require additional information or documentation, so be prepared to provide them promptly.
The loan funds will be transferred to your account if the lender approves the application. Read the loan agreement very carefully. Agreements often include repayment terms, interest rates, and additional fees. Always make monthly payments on time on the loan to avoid harming your credit score.
Pros And Cons Of Wedding Loans
Wedding loans have both advantages and disadvantages. The wedding loan pros include providing a way for couples to finance their dream wedding without using their savings or credit cards. Loans may also have lower interest rates than credit cards.
The loan can also help to establish a positive credit history if the borrower makes timely payments. However, there are also disadvantages of loans that you should consider. Taking on a loan means going into debt, which can impact the borrower’s financial future.
Interest rates can be high. In addition to this, lenders may charge additional fees. It includes origination fees or other penalties. Borrowers must also be sure they can afford the fixed monthly payments and factor in the loan payments when planning their future finances.
Read Also: How Much Should I Spend on an Engagement Ring in 2024?
Alternatives To Wedding Loans
Some alternatives to loans include saving up for the wedding, using credit cards with a 0% introductory rate, or asking family and friends for financial help. These alternatives can be useful for those who want to avoid the risks and costs associated with wedding loans.
Additionally, some people prefer to fund their wedding budget with their own savings or avoid taking on more debt. You must check out all the advantages and disadvantages of each available option. Select the one that best aligns with your financial circumstances and objectives.
0% Intro APR Credit Card
A 0% intro APR credit card is a credit card debt that offers an introductory period of 0% interest on purchases or balance transfers for a certain period, typically between 6 and 18 months. You can purchase or transfer a balance without accruing any interest during the introductory period.
Pros of a 0% intro APR credit card include the ability to make purchases or transfer a balance without accruing interest and the potential to save money on interest payments. However, the cons include the risk of overspending and the potential for high-interest rates after the introductory period ends.
Ask Your Friends And Family
Consider getting a loan for a wedding budget from friends or family when you have a close relationship with them, and they are willing to help. This option can be ideal for those who need help getting approved for a wedding loan or prefer to avoid taking on debt from a financial institution.
However, it’s essential to approach this option cautiously and discuss all the terms and conditions upfront. Discussing a loan from friends or family with the same seriousness as a loan from a financial institution is crucial. You also should ensure you can repay it on time.
Personal Loans
A personal loan is a type of unsecured personal loan that you can get from credit bureaus or a credit union. You can use it for various expenses, including weddings. Unlike secured loans, a personal loan doesn’t restrict how the funds can be used.
Personal loan often has fixed interest rates and medium personal loan APRs. You can obtain them from banks, credit unions, or online lenders. However, you consider that a personal loan often requires collateral or a co borrower to be sure you can repay the loan.
Home Equity Loan Or Line Of Credit
A line of credit loan option allows homeowners to borrow money. They often use the equity they have in their home as collateral. It provides a lump sum with a fixed interest rate and repayment period. This option may suit those with significant home equity and stable income.
The main advantage is that the interest rates are usually lower than credit cards or personal loans. However, the risk is that if you default on payments, your home can be foreclosed.
Sources Used in Research for the Article:
- Upgrade, Major Purchase, https://www.upgrade.com/personal-loans/major-purchase/
- What You Should Know About Home Equity Lines of Credit (HELOC), Consumer Financial
Protection Bureau,
https://files.consumerfinance.gov/f/documents/cfpb_heloc-brochure_print.pdf - Upstart, Wedding Loans, https://www.upstart.com/wedding-loans