Should You Get A Wedding Loan in 2024?

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Edited byAmy Wilder

Updated: December 28, 2023

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A wedding is usually not a cheap event for the people involved. However, it’s a life-altering milestone. That’s why many couples take the leap in spending a huge amount for this occasion.

Various factors affect the total cost of a wedding, including location, number of guests and the couple’s choices. A considerable chunk of the budget often goes to the venue. On average, a wedding venue costs $10,700.

The average rate for a photographer is $2,500. The bride’s wedding dress can also be pricey, costing an average of $1,800. Other expenses include the groom’s attire, cake, hair and makeup, floral arrangements and catering services. Choosing to go on a honeymoon can increase expenses.

The average total cost of a wedding in 2021 was $34,000. Around $28,000 was allocated to the ceremony and/or reception. Couples typically spent $266 per guest, with an average guest list of 105.

For some couples, one way of covering the hefty costs of a wedding is to take out a wedding loan. It’s a personal loan for weddings. Wedding loans are not a separate category of loan. That means the loan application process and the repayment terms are based on the rules and requirements of lenders that provide personal loans.

Before applying for a personal loan for your wedding, it’s essential to understand your options. Learn about the potential drawbacks that a personal loan carries. Be sure you understand all the conditions it entails.


How Does a Wedding Loan Work?

To understand how a wedding loan works, it’s important to know what a personal loan is. You can use a personal loan for various reasons. One of them is to fund a wedding.

Personal loans are typically unsecured, which means there’s no collateral required. However, they accumulate interest. Based on recent data from the Federal Reserve, the average annual percentage rate (APR) for a 24-month personal loan is 8.73%, but rates vary per lender. Repayment terms, maximum loan amount and other associated fees also differ depending on the lender.

You can decide whether to use a wedding loan to cover all or some of your wedding expenses. That’s why it’s smart to calculate your costs first. You can start by categorizing your expenses and determining which requires more funding. An online wedding expense calculator can also help you understand how much you may need.

Is a Wedding Loan Right for You?

A wedding loan can be a good idea. However, it may not be suitable for every couple. Before taking out a personal loan for your wedding, ensure you understand the fees, terms, funding time, interests and possible impact on your credit score.

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Weddings are time-sensitive, so it’s good to know beforehand how long it’ll take for you to receive the money once your personal loan gets approved. While some lenders may offer next-day funding, others may take a while.

Aside from the loan processing time, you should also consider the preparation for the requirements and paperwork. Additionally, certain aspects of a wedding require advanced planning and deposits. Thus, you may need to have funds in advance.

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There are various factors you should consider when shopping around for a wedding loan. Compare interest rates, funding time and repayment terms. Calculate the wedding loan based on your research. Doing this can help you determine which loan offer is more likely to cost the least in the long run.

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One of the factors lenders consider when evaluating a loan application is your credit score. A lender may conduct a hard credit inquiry when you apply for a loan. This can affect your credit score for some time.

That’s why it’s important to be careful when applying for loans. Having too many hard credit checks on your record within a short time span can be seen by lenders as a red flag.

Pros & Cons of Getting a Wedding Loan

Couples preparing for their wedding can find a personal loan helpful, especially for covering large expenses. However, it may also have drawbacks as it can strain your financial situation and your marriage.

Before you take out a personal loan for your wedding, ensure you understand the benefits and risks.

Advantages of Getting a Wedding Loan

A personal loan is suitable for a couple preparing for a wedding if its advantages outweigh the drawbacks. Below are some of the benefits of taking out a wedding loan.

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A wedding loan can give you access to a large lump sum of money. With proper planning and calculation, you may be able to use the funds to cover all or some of your wedding expenses. Depending on the lender, you may also find same-day or next-day funding offers.

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Many couples use credit cards to pay for their wedding expenses. However, that may not always be the best option. In some cases, credit cards carry higher interest rates than personal loans. Individuals with bad credit tend to get high interest rates on personal loans.

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Having savings is important for newlyweds as it ensures access to funds in emergencies. However, some couples tap into their savings when preparing for their wedding. A wedding loan can prevent this from happening. Since you’ll be borrowing the necessary funds, you can keep your savings for other matters.

Disadvantages of Getting a Wedding Loan

Wedding loans aren’t for every couple. In some cases, they can lead to financial issues. Here are some disadvantages you need to look out for.

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A personal loan is a form of debt. Taking out a wedding loan adds debt for you and your partner, which means you start your marriage with debt. Additionally, it may delay other life plans because you and your partner will have to make monthly loan payments. That’s why it’s important to ensure that you’ll be able to pay off the loan within the set term.

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Balancing your finances can be challenging. You want to ensure you and your partner are taking care of your obligations and have enough budget for your necessities. Having debt may make financial management more difficult. Sometimes, it can cause stress.

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A wedding loan gives you access to a large sum of money. In some cases, it may encourage overspending. Couples may be tempted to pay for unnecessary aspects of their wedding. For example, they may start inviting more guests than intended.

Steps to Getting a Wedding Loan

Requirements, fees and terms may vary depending on the lender. There may also be some differences in the application process, including qualification requirements and processes. To help you get started, here are some of the most common steps for wedding loan applications.


Calculate how much you need

The first thing you need to do is determine how much money you’ll have to borrow. Calculate all your expenses. Determine whether you’ll need a loan to cover all your wedding costs or only some of them.


Assess your qualifications

Before applying for a loan, check if you’re eligible based on lender requirements. Typically, lenders look at credit scores. Having a good to excellent credit score increases your chances of getting approved for a loan.

Your debt-to-income ratio (DTI) may also be used to determine if you meet lenders’ income requirements. It shows lenders how much of your income is already going to debt repayment.


Get prequalified from various lenders

Some lenders may offer prequalification. This means your financial profile fits the general profile of borrowers who have been approved for loans in the past. This typically only involves a soft credit check.


Compare loan offers

It helps to shop around when looking for the best loan offers. You can take advantage of lenders offering prequalification with only a soft credit check. Determine which offers the best rates to help you save money in the long run.


Submit an application

Once you’ve chosen a lender and loan offer, you can proceed with the application process. Complete the necessary paperwork and submit all requirements. Make sure you review the terms and read the fine print.


Wait for approval and funds

After submitting your documents, you only need to wait for the lender to finish reviewing your application. The funding time after the loan approval depends on the lender.

Frequently Asked Questions About Wedding Loans

Taking on a personal loan for a wedding comes with pros and cons. Below are some of the most commonly asked questions to help you better understand how wedding loans work and determine whether taking one is the right step for you.

Since a wedding loan is a personal loan, anyone eligible to get a personal loan can take out a wedding loan. Eligibility requirements vary per lender. In most cases, a good credit score and DTI ratio are necessary.

It depends on the lender. Some lenders allow borrowers to complete the loan application process online, while others require a personal appearance.

The approval process for a wedding loan depends on the lender. For instance, lenders who accept online applications tend to have a shorter processing time. In most cases, the whole process from application to approval may take a few days.

The necessary documents may vary per lender. Typically, it includes a completed application form, proof of identity, proof of income and proof of residency.

Default means failure to pay the lender within the agreed-upon term. Depending on the lender and loan agreement, a personal loan may be considered in default if the borrower’s payment is late by a certain number of days.

If you default on your wedding loan, you may end up with higher debt. Defaulting may also negatively impact your credit score. The lender may even take you to court and seek repayment.

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The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.