- Emma Parker
- July 5, 2022
Wedding loans are an expensive deal. Hence, some people look for it while some people do not look for it. But many people borrow loans for their big day. It is a good chance to take care of everything in an easy way.
If you are availing of wedding loans, you can easily cater to thousands of people at your wedding. Also, you can check with different expenses at your wedding. But it is not easy to just avail of a loan and pay it off.
You should be careful of all the aspects that are related to the loans. Some people consider this option a good one. They check all the costs that are associated with this loan.
Pursue your Dream Wedding in Style
Wedding loans are a kind of personal loan that you need to pay off on time. If you borrow this loan, you can avail the whole amount. It always looks easy to finance your wedding with a loan. But what is the reality?
How can you check your decision of availing of the loan? To answer this, it is essential to check with the lender on everything. Alternatively, you can go for 12 month loan for bad credit with no guarantor from a direct lender.
These loans are a good option too. But many people do not either set with budget or check the total cost. It is crucial to have an estimate of the total budget and cost.
What is a Wedding Loan?
A wedding loan is a kind of loan wherein you do not need to provide any like it or collateral. This is like a personal loan but not exactly a personal loan. It covers all your expenses, and you can get a loan of up to £40,000.
The repayment terms of loans vary from lender to lender. You have to connect with the lender to check the terms and conditions. Usually, the repayment term ranges from 1 year to 84 months.
Advantages of Wedding Loan
Simple Application Process
The application process is simple as compared to other loans. There is no need to meet the lender physically. Follow an online process.
You can provide your documents to the lender, and once your documents are processed, the loan can be approved. This process has been simplified over time. Once you go ahead with this loan, you just have to complete the application form and submit it online.
Post your submission, the lender will be your application and will approve or reject basis on your profile. If you have provided all your documents, it will be easier for you to get approval for your loan.
There is a lot of flexibility involved in loans. Unlike other traditional loans, you can choose the repayment and the amount. The amount that you have thought of for your wedding, you can apply for the same amount.
Do not avail more than what is required. Also, you can spread the cost quickly in your repayment schedule. Try to go for the instalment process while paying off your loans.
Boosts Credit Score
Borrowing a loan can help you push your credit score. If you regularly pay off your loan amount, it will boost your credit score. Do not make any default to have the perfect credit score.
There is no need to provide collateral. You can get these loans without offering any security or asset. They are kind of unsecured loans.
There is no risk of it involved. You can save your valuables as it’s like home and car and still avail yourself of a loan from the lender.
The decision for the loan is quick. The lender takes an instant decision. The decision is solely based on your documents but still, the lender checks with your profile.
There is no need to wait for your loan approval. There is a quick decision, and you can easily use this money for your wedding.
Disadvantages of Wedding Loans
High rate of Interest
Since wedding loans are unsecured, they bear a higher rate of interest. The lender can have a risk of default. Hence, they offer you loans at higher interest rates. Even if you borrow a smaller amount, the interest rate will be comparatively lesser but higher.
Default on Payments
If you default on your payments, it will adversely impact your credit score. Do not default on your loan. If you do so, you will be blacklisted from the books of the lender. Also, it will restrict you from any form of credit for the next five years.
Some lenders can charge a prepayment fee. If you are paying off your loan early, it still costs you money. Try to pay it off on time. Not every lender, but some do charge this prepayment fee.
When should you Avail of Wedding Loans?
It is not at all difficult to avail a wedding Loan. But repayment of a loan can be challenging for you. It is a kind of personal loan only. There is no need to keep your mortgages or asset. The only necessary clause in the loan is the repayment.
You have to repay your loan on time. Alternatively, you can choose a guarantor or a cosigner to avail of the loan. There are other options as well, such as bad credit loans with guaranteed approval and no guarantor from a direct lender.
In this case, if you are not able to do it, the guarantor or the cosigner needs to repay your loan. It is the best decision only when:
You are ready for the Repayments
If you are sure you can repay your loan on time, you are making the best decision to avail of the loan. Calculate the amount that you are borrowing and the interest rate on it. Calculate your monthly instalments and then only go for this loan.
If you have the slightest idea of default, do not avail this loan. It can severely damage your credit score.
You have the Perfect Credit Score
Usually, the rate of interest is higher on a loan. So if you have a good credit score, do not go for it. A default can drastically drop your credit score. It will make your loan more expensive than it actually is.
You Need Money Immediately
If you instantly need money, a wedding loan is a suitable option for you. If there is an instant decision about your wedding, this loan is good for you. Check with all the requirements and the repayment terms and conditions.
Once you are convincing it, only then go for it. The loan can be approved within seconds. But repayments will take time. Hence, it is only our decision to decide on the loan.
Borrowing a loan for your wedding fairytale can be a good decision. Till the time you do not have any financial plan in place, do not go for it. One decision can literally change your life. If you can manage to repay your loan on time, this is your cup of tea.
Always remember, setting your budget is equally important as your wedding. Do not overspend on your wedding; instead, take a wise decision to avail yourself of the loans.
Emma Parker is a financial counsellor at LondonLoansBank and has been serving for over 5 years. She is a psychology graduate from the University of Glasgow. Since she has keen interest in the finance field, she pursued a diploma course in banking and finance that led her to opt for her current career. She assists people choose the best loan based on their current financial situation and credit score. As Emma understands how people react to money problems, she gives them a helping hand to solve their financial complications.