How will you swiftly make that deposit and secure your perfect wedding venue? Feeling uneasy about contacting your parents for a little loan to meet those unexpectedly high expenses? A wedding loan could be one of the most simple options to solve your wedding problems quickly. As you may have guessed, a wedding loan is a type of personal loan designed to meet your specific wedding-related financial demands.
However, just like any other type of loan (and the vast majority of other things), a wedding loan can be an asset or a liability, depending on how it is handled. Before imagining how you will spend the windfall from the wedding loan, there are a few things to consider before signing the application.
Your Credit Reliability
Check if you are a good candidate for a wedding loan before taking out a loan to pay for the finishing touches that could make the difference between a flashy wedding and a far more beautiful one.
1. Can you afford it?
How will you make your regular wedding debt payments? Will your future husband be a co-payer? To prevent your wedding loan from becoming a big post-wedding strain on your relationship, you must address any potential difficulties from the outset. Your payment structure should not rely exclusively on a single source of active income. This will ensure that if you or your spouse lose your work, you will honour your payment obligations to your lender. Knowing that your capacity to repay your debt is not contingent on a single source of income will also help you sleep better. It is never a bad idea to have a Plan B or even a Plan C.
2. Are you able to handle the worst-case scenario?
In the distant future, the market will collapse. You and your spouse are suddenly unemployed and unable to pay your respective mortgages. In such a case, do you possess assets that can be liquidated to repay your lender? What about an emergency fund? A savings account containing nine months’ worth of living expenses will assist you in overcoming what you believe is a temporary roadblock.
3. How well do you fare on the marshmallow test?
We’re discussing character here — the self-discipline and foresight to forego instant gratification (snagging the latest designer bag on sale, “downgrading” to an a la carte menu for your birthday, or even reducing your daily Starbucks intake) to obtain and appreciate something of greater and longer-lasting value. If you can firmly answer yes to all of these questions, you should proceed. There are quite a few advantages to taking out a wedding loan, which you should learn about. As you continue making preparations for the wedding, obtaining a wedding loan could be the next greatest thing for your peace of mind (second only to when you and your fiance finally agreed on the guest list).
The benefits of wedding loans
Personal loans, including wedding loans, provide distinct advantages over other types of loans.
Here are several reasons why obtaining a wedding loan could be advantageous:
1. Offers reduced Interest rates compared to credit cards
The average credit card Interest rate in the United States in 2020 was 16.28%. With a strong credit score, the average Interest rate on a personal loan will be between 9 and 13%, and it can be even lower for those with a higher credit score.
2. Provides the opportunity to acquire a credit score
No previous credit history? Obtaining a loan and making prompt payments might improve your credit status with lending companies. This will enable you to establish a solid credit history, making it simpler to obtain future loans at even reduced Interest rates.
3. Has quicker processing
The processing time for a wedding loan might be as short as 24 hours or less. This is because there are fewer applicants compared to other sorts of loans. As with all other unsecured personal loans, you are not required to provide collateral. And because there are fewer restrictions, it is simple to apply for a wedding loan online.
4. Provides a definite term
In contrast to credit card terms as fluid as an infinity pool, wedding loans have a fixed term.
This will help you avoid potentially catastrophic debt crises.
5. Permits you to go “all-out” instantly (within reason, of course!)
If you can’t wait to begin “forever” with the love of your life, this may be the only reason you need to acquire a wedding loan: you no longer need to save for years to afford your dream wedding. Obtaining a wedding loan will allow you to pay for these expensive extras. Now you can hire a wedding planner with the highest efficiency. Perhaps money can buy you brief delight and elusive tranquillity. Go ahead and appreciate the remaining options that obtaining a wedding loan can allow you to conceive of and carefully consider:
Items that are covered by wedding loans
With the confidence of a financially smart bride who has a clear debt-payment strategy and the determination to stay to the wedding budget, you can now muster the bravery to make your dream wedding a reality by implementing the following suggestions.
1. Acquire the gem.
Buy that extraordinarily popular engagement ring. The “something old” tradition can be fulfilled by your mother’s beautiful tulle veil, while “your stunning engagement ring can fulfil something new”.
2. Obtain your hands on the garment of your dreams
With high-quality cloth, you can now achieve a luxurious wedding style. What do you think of the wedding buttons? Cover the objects in satin. What about those pearl accents? Perhaps you could add a few more to the hemline. Go ahead and splurge on those small elements that make a significant impact on your overall appearance.
3. Hire a skilled photographer
Did your wedding financing include the cost of a professional photographer? Feel free to make that call! Ultimately, the precious memories captured in those stunning photographs will last a lifetime.
4. Make those bookings
Obtain the required deposits to reserve the most desirable wedding location or the most in-demand caterer in the city. With the quick processing of your wedding loan, you will no longer need to worry about your reservations since they have been made.
5. Extend the guest list for the wedding
You no longer need to decide which cousin to omit from your wedding guest list or who is most likely to harbour a grudge for being excluded. Remember that more is not necessarily better in ambience and longevity (financially speaking).
6. The book that luxurious honeymoon
As much as you would like to accept your BFF’s offer of a free stay at her out-of-town condo, you may want to ask her to hold the condo for when you need a little work break. If you have the funds available, it would be a wonderful opportunity to create some of your most cherished memories as a married couple. Seize the opportunity to enjoy a few sumptuous firsts together. Wouldn’t that be a wonderful way to begin married life?
7. Pay for unexpected wedding costs
Imagine not having to bother about reserving more rooms for your in-laws or fretting about the wine running out. One of the advantages of obtaining a wedding loan is the freedom from worrying about unplanned, unforeseen expenses on your wedding day. And calm on your wedding day is something that cannot be purchased.