When you are planning a wedding, you will quickly see that this can be an extremely expensive event. Armed with a budget to control expenses and a modest guest list, the charges for the many aspects of a wedding can quickly add up. Some couples look for Wedding Loans for bad credit.
Even if you are not in the best shape financially, there are wedding loans for bad credit that may help you enjoy your big day the way that you envision it. Wedding loans for bad credit can give you options.
What are Wedding Loans for Bad Credit?
In the simplest terms, wedding loans for bad credit are personal loans that are used for wedding expenses. Most personal loans will be unsecured so collateral is not required. Getting approved for a personal loan depends on two factors: your credit score and employment history.
A poor credit score or spotty employment record will make you less attractive to lenders. Wedding loans for bad credit are available, though. Learn about bad credit wedding finance before applying for a loan.
Advantages of Wedding Loans for Bad Credit:
- If your credit score is good and you are steadily employed, a loan will be easy to secure.
- Loans usually offer better interest rates than credit cards.
- Lenders typically respond quickly.
- A loan may allow you to have the ‘extras’ that you want at your wedding.
Disadvantages of Wedding Loans for Bad Credit:
- If you have poor credit, the interest rate will be higher.
- A loan repayment will add to your current debt load.
- You may not want to start a life together with additional debt.
Before shopping for a wedding loan for bad credit, you need to stop and consider the full ramifications of doing so. As finances are the central point of contention for most couples, the addition of debt may not always be the best course of action.
Before Applying for a Loan
- Creating a budget to control expenses
- Limiting the guest list
- Enjoying a longer engagement period in order to increase your savings
While you can get weddings loans with bad credit, before you do so, consider your options and know exactly what funds are needed. In this way, the loan amount you apply for may be small thus giving you smaller monthly payments.
Getting Wedding Loans with Bad Credit
Wedding loans with bad credit are available but you need to proceed wisely when looking for one. A way to find a potential lender is to use a third party service such as Loanry.com While these sites are not lenders, they are a disinterested party that connects individuals seeking loans with lenders. This gives you protection against some predatory lenders in the marketplace.
They also provide consumers with a wealth of information so that when you do start the application process, you are more knowledgeable and better prepared. You may decide to delay getting a loan so that you can improve your score. Scores of 650-700 are fair. Under 650 is considered a bad credit rating. By paying current debts on time, making payment arrangements with credit cards and maintaining the schedule, and paying off as much as you can will improve your credit rating. Also, borrowing exactly what you need for your wedding, will improve your chances for loan approval.
How to Save on Wedding Cost with Bad Credit
When you start planning your wedding and building a budget, you’re going to be looking for places where you can save money on wedding cost. By shopping around and know how much it is going to cost before looking for a wedding loan with bad credit, you’re going to be in a much better place financially.
Also, with a yearlong engagement, you’ll be able to save up for some of the wedding expenses. In order to save $20,000 to fund the wedding, you would need to save approximately $1,700 a month. While this may overstretch your daily budget, understanding what monies are needed for the wedding, shopping around and eliminating budget items can get you to a more realistic scenario when you do apply for a loan.
There are many tricks to reducing some of the major budget line items:
- Dress: Borrow a dress from friends or family; rent a dress; have a seamstress make the dress.
- Venue: Have a friend host the wedding on their property; get married in the winter; choose a date other than Saturday.
- Cake: Choose a simple design; select a small display cake then serve a sheet cake to guests; use a culinary student
- Invitations: Create your own. Use a commercial printer for the insert then construct invitations yourself or with friends.
When you get in the swing of things, you will find there are many areas where you can cut the budget down and eliminate unnecessary expenses. Also, remember to always negotiate prices when possible. You may not feel comfortable at first but you go save on the venue, flowers and catering by doing so.
What Happens When A Couple Finances A Wedding?
When you decide that a personal or wedding loan with bad credit is the best avenue for you and your fiancé, you’ll need to start looking for lenders that best fit with your needs. Unsecured loans are better for couples because they don’t require collateral that will be repossessed if the loan is not paid back on time. For loans with interest rates that don’t vary, look for fixed-rate loan so that you will know beforehand how much interest will be repaid. Short-term loans are also a good bet because given the short loan period, there is less interest to be repaid.
This is also a good time for you and your fiancé to develop a financial plan based on your current situation. As you both work on improving your respective credit scores, any errors or negative items can also get fixed. While you have some embarrassing issues in your past, its better to begin working together before applying for a wedding loan for bad credit. A frank conversation in the beginning can set you both on the road for your new life together. Here is a story about a couple who took out a wedding loan and what happened next.
Use Bad Credit Wedding Loans as Your Last Option
When you are considering your wedding budget, it’s important to be ruthless with expenses. Cut the budget down and find savings wherever you can. Wedding loan for bad credit should be a last option. Experts caution couples about starting their new lives together with marriage debt. Money issues can create tensions in any relationship but particularly couples just starting out. When you just can’t afford the wedding expenses, consider having a frank discussion with both sets of parents about your limitations.
They may be able to contribute to the budget so that you can have the wedding that you have been dreaming of. Realigning your dreamy wedding visions with the realities of daily life can be tough but let practicality guide you to develop more realistic plans. For instance, while a destination wedding on the sandy beaches of a tropical island may be what you are dreaming of, they can expensive.
Also consider that a destination wedding is not only expensive for you to plan and execute, it’s also expensive for everyone that you invite and include in your wedding party. Many of your closest friends and family members won’t be able to attend because of the costs involved. These are all things to think about.
Other areas where you can find savings include:
- Bar service: A typical open bar will cost approximately $1,000 – 3,000 depending on the number of guests. Consider limiting the guest list or opting for a cash bar to decrease this expense. Another option is to limit the bar to beer and wine only. This is less expense than having a full liquor bar.
- Catering: Most catered dinners will cost approximately $30 a plate. Looking at the menu for less expensive option can give you a more manageable catering budget. You can also consider having your wedding at a time of day where guests will not expect a full meal. Depending on the time of day, you can offer finger foods or cocktail hors d’oeuvres, both of which will have a lower cost than a full meal. Additionally, morning weddings can offer breakfast which is also cheaper than other meals.
- Venue: Most venues cost about $1,300 for a wedding. See if you can negotiate this price. The homes of friends and family or public spaces such as parks or museums can lower or even eliminate the venue costs.
- Equipment: The costs for tables, chairs and linens can be another expensive area. Look for venues that include this in their rental costs.
The overall point is that while loans for wedding expenses are available, that should not stop you for looking for other avenues to afford your wedding. By refining and tailoring your budget, you’ll discover that you can still have the wedding of your dreams without breaking the bank. By spending some time, doing your research and saving, you’ll be able to bring that cost down significantly. If you do find that you need a wedding loan for bad credit, you’ll have a much better idea about the amount of money that you need and where to find it.
Wedding Loan Calculator for Bad Credit
To help you with your budget, there are several personal loan calculators available online. These will help you with your research. The tool available from loanry.com can help you set your goals realistically.
Credit Cards as an Alternatives to a Wedding Loans for Bad Credit
When you are searching for a way to finance your wedding expenses, you may considering using your credit cards vs wedding loans to cover the bills. That is just one available option and it may not be the best. With wedding loans for bad credit available, you need to do your homework so that you know that you are choosing the best path for you and your fiancé. Let’s consider the advantages and disadvantages of using credit cards for wedding expenses.
Advantages for Using Credit Cards for Wedding Expenses:
- Paying for only what you need: As there is a credit limit, there is only so much many that can be spent using the credit card. If you have a high credit limit, you may have all of the funds that you need for your wedding available to you already. This allows you to spend for what you need when you need it. As opposed to a loan where you receive a certain amount of funds that immediately starting accruing interest until you pay it back.
- Credit card companies frequently offer no interest opportunities. This allows you to pay down the card without the penalty of interest.
- Credit cards can also offer the chance to consolidate debts at a lower interest rate with balance transfers.
Disadvantages for Using Credit Cards for Wedding Expenses:
- Higher APR: The annual percentage rate (APR) are going to be higher with a credit card than it will be for a wedding loan. For each month that the credit card is not completely paid off, the interest will grow. This makes the repayment more expensive over time. With a personal wedding loan, you will know up front what the interest rate will be and the total amount that will have to be paid back and on what schedule.
- Credit card fees: Regardless of what credit card you have, there will be additional fees associated with your account. This can include annual fees, fees for being over the limit or making late payments. Fees vary from credit card to credit card so know that they are first.
- Best credit cards – To get the great advertised offers from the best credit cards, you’ll need to have exemplary credit. Those tantalizing offers of no interest and no annual fees are tempting but unless you have an exceptional credit score, they may be beyond your means.
- Other fees – There will also be additional fees for cash withdrawals for cash-only expenses and foreign transaction fees if you want a wedding destination outside of the US.
How to Plan a Free Wedding
Weddings are expensive. While it may not be possible to have a wedding that is completely free, you can get close with scrupulous planning and effort. For instance, you will need to pay for the wedding license and registrar. Also, the wedding officiant will need to be paid. The key is to seek low or no cost options that will reduce costs but still give you the special wedding day that you have been dreaming of. Here are some ideas.
- Reduce the guest list
- Consider holding the wedding ceremony in a park, friend’s home or nearby beach.
- Cater the reception with food from friends and family
- Borrow at dress or consider shopping at vintage stores
- Ask a friend to photograph the wedding
- Ask a friend to serve as DJ with a music selection on an iPad
- Craft your own invitations and decorations
- Create a wedding bouquet from your garden or a friend’s or neighbor’s flowers
These are a few ideas to get you started. If you find that these options are not enough to cover your wedding expenses, consider a wedding loan for bad credit. Loanry.com is not a lender, but can help you find one. They understand that emergencies happen in everyday life and that people face expenses like wedding expenses.
They connect people who are seeking personal loans with a potential lender. You will be able to compare rates and find a lender for your situation. They also provide a wealth of information so that you are an educated consumer. Use their services when you are planning the event. Your wedding day should be one that you will always remember.
Celeste has been crafting financial related content for search engine optimization projects since 2009. Overall, her writing includes blog posts, web content, press releases and marketing material across a wide spectrum. Her broad career experience allows her to craft articles that are approachable yet informative.