RoxanneExperts say that the number one way to pay for a wedding is cash, as it can keep you from starting married life with significant debt. But since the average wedding hovers around $20,000, many couples don’t have the cash they need to get married.
What’s another option? Besides getting a loan from friends and family, you could put your wedding on a credit card, but that could lead to high, unpredictable interest rates and unnecessary stress. What’s left? Getting a wedding loan.
Wedding Loans Explained
People who lack the cash for a wedding can get personal, unsecured loans to fill that financial void and get married without waiting. Wedding loans range from $1,000 to $100,000 with APRs in the 5-35% range.
When you take out a wedding loan, you will be expected to pay it back on time, just like a car loan. Unlike a car loan, though, there is no collateral involved, so nothing will be repossessed if you do not pay the loan back. However, you will take a hit on your credit history and run into other issues.
Luckily, lenders make wedding loan repayment simple. Such loans often have fixed interest rates, so you can expect the same payment each month without any increases. Depending on the lender, you could enjoy other perks like zero fees, no prepayment penalties, and even unemployment protection so you can pause payments if you lose your job.
And while the thought of taking out a wedding loan for tens of thousands of dollars may be intimidating, you may have the option to pay that cash back within one to seven years with payments that fit your budget.
Where To Apply For A Wedding Loan
Before you start shopping around for a wedding loan, know this: Since it is a loan, lenders will check your credit if you decide to go beyond prequalification and fill out an application. Your credit does not have to be perfect, though, as some lenders will offer wedding loans as long as your score is above 580. If it is lower than that, start making moves to improve your credit score until you reach that number. And if your score is so low that increasing will take too long, look for lenders that accept co-signers.
Now that you know the minimum requirement to get a wedding loan, here are some lenders that could be the right fit for your needs:
- LendingClub – Wedding loans up to $50,000. You’ll need at least a 600 credit score here or use a co-applicant.
- LightStream – Minimum credit score of 600. Wedding loans up to $100,000.
- Avant – 580 minimum credit score. Loans up to $35,000.
- Upgrade – Minimum credit score of 580. Co-applicants are accepted. Wedding loans up to $50,000.
- Discover – $35,000 loan max. 660 minimum credit score.
