Wedding Tips

How to Use Wedding Loan to Cover Your Cost

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For most couples, a wedding is the first time you’ll ever have to think about planning a huge event, let alone creating a wedding budget. That means lots of people start planning a similar way. First you think about the wedding you want. Then you think about how much you’re comfortable spending. And then you hope really hard that the two concepts match up. The problem is, it’s almost impossible to know how much the event you’re envision is going to cost until you start getting into the nitty-gritty of planning.

We’ve all read and researched the tips and tricks for how to save money, how to have a budget wedding, and even how to stick to a budget.  But how do you figure out what that budget is in the first place? And are there ways to get more funds just in case you fell short?

What is a wedding loan?

A wedding loan is a small short term cash loan that you use to pay for your dream wedding. Personal loans come in a wide range of forms for a wide range of borrowers, meaning that you should be able to find something perfect for your current financial needs. Better still, personal loans can be either secured or unsecured using collateral. This means that you can use one of your assets as collateral to secure a loan, typically secured loans and unsecured loans have slightly different terms and requirements so you can choose which ever options best suits your needs.

Should you get a wedding loan?

Getting a loan to cover some or all the cost of your wedding is a personal choice that can only be made by you and your future spouse. Everyone’s budget is different and everyone’s dreams are different so figure out what you can afford to spend, decide if your parents or any family members will be contributing any money and then create your budget. If your wedding fund isn’t quite cutting it then you might want to consider apply for a wedding loan. Here are a few things you should consider while weighing your options:

  • A wedding loan is still a loan. Just because you’re getting married doesn’t mean you’ll be approved. If you’re currently engaged and know that you’ll need a loan to help pay for your wedding you might want to consider working on your credit score to help improve your chances of being approved. There’s nothing worse than planning the wedding of your dreams and then being rejected for the loan that was going to cover a significant portion of the cost.
  • A bank might not be the best choice. Sure getting a loan from a bank is always a great option but it’s becoming harder and harder to get approved by a bank these days. There are countless online lenders who specialize in smaller personal loans and are more often than not willing to work with potential clients to help them get the financing they need.
  • Interest rates on credit cards could double the cost of your wedding. Charging a few items to your credit card isn’t the worst idea but charging your entire wedding would potentially put your financial future in serious danger. Starting out a marriage with thousands of dollars’ worth of high interest credit card debt is a disaster waiting to happen. If you need help paying for your wedding a personal loan is a significantly better option than charging it all to your credit card.

How do you get a wedding loan?

Because the cost of a wedding is so high we definitely recommend that you do some research and find a money lender that’s right for you before you make any final decisions. Get as much information from your lender as possible and ask lots of questions. If you’re not sure about something ask for clarification. Make sure you have a budget planned out and know how much you need to borrow. That way when you get in contact with your lender you’ll also be able to provide them with all the information they need.

  • Ensure You Have Good Credit

First of all, let’s define the term “bad credit.” Credit reporting agencies compile a history of your credit interactions, such as all the loans and credit cards you have, the number of late payments you made or missed payments, if anything is in default and how many times you have applied for credit. From all of this information, credit reporting agencies determine your FICO score, which is then provided to potential lenders. Depending on the score that you receive, you will be determined to have “good credit” “fair credit” or “bad credit” in the eyes of any lending institution.

  • Complete Documents and Qualifications

Keep all the accurate information and supporting documents handy. Some overcautious banks conduct an exhaustive background check to ensure the credibility of the applicant.

One reason for rejection may accumulate for other reason and badly impact your credit score and history. Do not apply for personal loan unless you are in dire need of finance. Keep all supporting documents readily available and furnish all essential information instantly. Late payment of bills or paying an EMI with interest may appear trivial. However, it impacts your credit history significantly. These are the major reasons for rejection of a personal loan application. Make sure to avoid these pitfalls.

Many financial analysts believe personal loans for weddings should be avoided, offering too much temptation to overshoot spending and making you and your spouse begin your marriage with a big financial hole. But if you’re committed to obtaining a loan, do your best to limit your future debt burden.

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