Your partner has at last proposed to you. You immediately begin planning the big day. After making your budget, you realize that you don’t have a lot of money to spend on it.
Not on your dream wedding anyway. One of your friends took out a wedding loan for their big day but with your bad credit score, you doubt that you would be approved. We’re here to tell you not to count yourself out yet.
Even if your credit score isn’t the best, you still may be able to find a lender who will work with you. Check out this guide to learn how you can pay for the happiest day of your life.
What is a Wedding Loan?
Before we get into how to get a wedding loan, let's talk about what it is. First of all, what you're going to be taking out isn't a "wedding" loan per se. It's a personal loan that you're going to use to pay for your wedding.
In most cases, if you qualify the money will be given to you in a single lump sum so you can then distribute the funds where you need. It stops you from putting all the expenses on a credit card and tanking your credit even further than it already is.
That's one pro to taking out one of these loans anyway. There are many pros and cons of going forward with the process.
Pros of Taking Out a Wedding Loan
Vendors, your officiary, the venue, your dress, the tailor, band, and other wedding expenses typically call for a deposit. It can be overwhelming when all of these deposits hit at once if you don't have the money in your savings account to cover it.
If you don't have the money than you may miss out on getting your dream venue because you didn't have the money in your account to reserve the day before someone else snatched it up. Wedding loans are a convenient way to tackle all of these deposits so all you have to worry about is booking.
Wedding loans can be pretty simple to get. All you have to do is apply online and wait for your application to go through. Most of the time you'll know if you qualify for loans in a matter of minutes.
Most important of all, the interest rates aren't as bad as a credit card. It's easier to pay back so you can begin building your credit back up after you say "I do".
Cons of Taking Out a Wedding Loan
The interest on personal loans isn't as bad as credit cards but it's still something that will exist. Depending on how much you take out, you'll be paying it back for years. Since money troubles are a huge source of stress for married couples, it may be a bad idea to start off the marriage in huge lumps of debt.
If you have an existing loan, it makes it harder to get other loans. So, if you and your spouse are thinking about taking out a mortgage to get a house together, you may run into issues.
Even with these problems, there are still more advantages to taking out a personal loan than disadvantages. So, if you're still thinking about giving it a try, here are a couple of things you'll need to do if you have bad credit.
1. Improve Your Credit Score
You can't do much with a bad credit score. This includes taking out a personal loan to pay for your wedding. Many wedding loan lenders won't look at you twice if you have a score that dips down below 700.
If your wedding isn't going to be for quite some time, paying off past debts and improving your credit score might be the way to go.
2. Try to Get a Secured Loan
If you don't qualify for an unsecured personal loan, consider asking about a secured loan. You may be able to get the money you need to pay for your wedding but you will have to offer up something as collateral in case you can't pay the loan back.
The collateral can be anything of value from cash to a priceless family heirloom. Many people will refinance their home and offer that. It's not a bad idea as long as you're confident that you can pay the loan back.
3. Reach Out to a Co-Signer
If you have a horrible credit score but your mother has a score of 850 you may yet be able to get a loan without offering up your house. Ask her to be a co-signer for you. By co-signing they promise to pay back the loan in the event that you can't.
You'll be able to pay for your dream wedding and fix your credit score with no repercussions. Except for your relationship with your mom if you don't pay the loan back because it will affect her credit score as well as yours.
4. Downsize Your Wedding
You might be able to help your chances of getting a loan if you don't ask for too much. Any amount of money helps with common wedding expenses after all.
You'll still be able to have a beautiful wedding but you may have to downsize it a little. Look for a cheaper venue or use your yard. Go for a buffet-style meal for the reception instead of hiring a caterer.
If you have a bunch of artsy friends, have them create the decorations instead of paying for that yourself. There are a million and one ways to save.
Don't Let a Bad Credit Score Ruin Your Big Day
Huge, gorgeous weddings are nice but they're not cheap. You may end up having to change your plans if you can't make all the deposits on time. That's why you should consider getting a wedding loan even if you have bad credit.
We can help you out with all of your big wedding expenses. Go here to start the application process today.