Weddings are a significant financial undertaking, no matter where and when you’re getting married. After all, it’s your big day, and you understandably don’t want to penny-pinch. The price of weddings can easily get out of hand if you don’t stick to your budget, so you need to make sure your finances are in order. To help you stay on track and pay for your wedding without the associated stress, here is our complete guide to wedding loans in the UK.
Can you use a personal loan for a wedding?
You can apply for a personal loan for a number of reasons, and paying for your wedding is perfectly acceptable. You just need to be mindful of the following:
- You need to be clear with your lender about why you’re borrowing money, so make your intentions clear on your application form.
- Lenders will reject applications for illegal activities and those they deem high risk (such as gambling).
Most lenders will be happy to provide you with the money to pay for a wedding, providing you have a track record of repaying money in the past and are able to afford the stipulated repayments.
Is it normal to take out a personal loan for a wedding?
Lots of families take out a personal loan for a wedding. But remember, there’s no right or wrong way to pay for a wedding and how you go about it is a very personal thing. While some families might be in a position to cover all of the costs, others need a little helping hand along the way. Don’t forget that many weddings cost in the region of £20,000 – £30,000, and not everyone has that kind of money available.
What can you pay for with a wedding loan?
Providing you’re open with your loan provider; you can use a personal loan to pay for any expense you incur for your wedding. Whether it’s to pay for the venue or to buy bridesmaid dresses and suits for the groomsmen, these are wedding-related expenses you can pay for. Of course, when you take out a personal loan for a wedding, you can’t use the money to buy a new car or finance home improvements. You may want to check the terms and conditions of your loan, but most wedding loans can be used for venue hire, food and drink, invitations, Band/DJ, flowers, staffing, and audio equipment hire.
Technically, it’s not appropriate to pay for a honeymoon with a wedding loan, although some loan providers might deem it appropriate. In most instances, you can apply for a personal loan to finance a holiday, so it’s worth noting this before you take out a loan for your wedding or honeymoon.
Can you get a personal loan for a wedding with bad credit?
While you probably can get a wedding loan with bad credit, your options will be somewhat limited, and you will probably be subject to higher interest rates. Before approving your application, most lenders will look to your credit score above all else, so if your score isn’t favourable, it won’t help your chances of getting the wedding loan that you need. However, loan providers like Koyo Loans utilise Open Banking to gain a much clearer picture of your current financial circumstances. This means they use more than just your credit score when determining whether to approve you for a loan.
Other wedding finance options to consider
While applying for a personal loan for a wedding is a good option, you can also pay for your UK wedding in the following ways:
Although most credit cards have a limit in the region of £5,000, this may be enough for certain wedding expenses. For instance, it might cover a venue hire deposit or the cost of catering on the day. If you take out a new credit card, you might be offered a zero-interest period at the start, which is a great way to borrow money in a cost-effective way. Just be mindful that you need to pay off your credit card minimum balance each month, and check what the terms of interest are after the zero % period is over.
In some instances, you might be able to apply for supplier or store credit when purchasing certain goods or services for your wedding. For instance, your venue might allow you to make payments in instalments, or you can buy your wedding attire in advance, only to pay the balance off in agreed amounts.
Although an overdraft isn’t designed to fund a wedding, it can still be useful. Depending on your current financial situation, your bank may offer you an overdraft, which you can utilise when making specific purchases for your wedding. The only drawback to an overdraft is that it’s typically only good for a few hundred pounds, so it won’t be helpful for bigger wedding purchases.
Recap: How to get a personal loan for a wedding
The good news is that applying for a personal loan for a wedding is relatively straightforward. You can apply directly to a lender such as Koyo Loans for an unsecured personal loan between £1,500 and £12,000. 27.9% APR Representative. You usually hear back within 24-48 hours and can get started with clearing some of the payments for your upcoming big day.