Wedding loans

How much should I borrow for a wedding?

Every wedding is as unique as the couple tying the knot, but there’s normally a long list of things you’ll need to organise and pay for when you’re planning your big day.

Start by creating an overall budget and break it down into categories to see whether there’s anything you might be able to save on. Then, with a clear budget in mind, you can decide how much you want to borrow to bridge the gap. Plus, it’s a good idea to have a little extra money to account for the unexpected expenses that will inevitably come up.

Ideally, you should be in a position to pay for most of the wedding yourselves as no one wants to start married life with a big debt.

Can I get a wedding loan?

It depends on your personal circumstances. You’ll generally have a better chance of being accepted for an unsecured wedding loan if:

• You have a good credit history. Lenders want to know that you’ve managed debt well in the past and that you can be trusted to pay back what you borrow. 
• You have a steady income. A lender will be more likely to approve your loan application if you have a regular income.
• You can afford the loan. Responsible lenders will look at your current debt and regular outgoings alongside your income to see if you can afford the loan.

See what loans you’re likely to be accepted for without impacting your credit score.

What are the cons of a wedding loan?

A wedding loan can help you have a day to remember, but there are some disadvantages to consider:

• You need a good credit score to get the best loan rates – the interest rate you see advertised may not be the rate you’re offered (unless it’s a guaranteed rate).
• It could damage your credit score – if your circumstances change and you find you can’t make the repayments on your loan, it will have a negative effect on your credit score.
• It might not be the cheapest way to borrow – a wedding loan isn’t the only way of financing your big day, so it’s worth comparing your options to see what works best for you.

What are the alternatives to a wedding loan?

Aside from taking out a loan, there are a few other options you could consider to help finance your big day:

Credit cards

A 0% purchase credit card lets you make purchases upfront and pay off what you’ve spent, interest-free, over a set period. If you’ve cleared what you owe at the end of the 0% period, the credit won’t have cost you anything.

You’ll need to pay at least the minimum repayment each month and ideally pay off what you owe before the 0% period expires. Otherwise, you’ll end up paying interest on what you owe.

Interest-free overdraft

If you need money in the short-term to secure a venue, for example, you could use an interest-free overdraft (if you have one).

But be aware that you’re likely to be charged if you go over your overdraft limit.

A family loan

You could borrow from a family member. It may be that they won’t charge you interest or only charge a low rate.

Just bear in mind that it could harm your relationship if you can’t pay them back. For that reason, it could be a good idea to agree beforehand on what the monthly repayments will be.

Saving up

If you’re itching to get hitched, saving up can feel impossibly slow. But the upside of waiting is being able to start your married life debt-free. Even if you’re not able to fund the whole wedding with your savings, the more you can cover without borrowing, the better.

Shared budgeting may not be massively romantic but it’s an important part of married life. Sit down together and work out what you could save each month for your wedding.