What is a Wedding Loan?
A wedding loan is a personal loan that is opted by people to cover some of their wedding expenses. Weddings
are an expensive affair with the average wedding cost of £27,161 in the
UK. It is not a surprise that most of the couples are taking out these unsecured loans to make their special
occasion more joyous.
The dream day comes with a huge price tag these days and to tackle with financial shortfalls, couples
prefer an unsecured loan as it doesn’t require any collateral or any guarantor. Moreover, it can be
repaid over a period of a year or less. That means borrowers have the flexibility to choose the loan
repayment period.
A borrower must consider the repayment strategy before taking out a personal loan to avoid causing any
damage to their credit score. The interest rate on personal loans for wedding in the UK depends
on the assessment of your financial circumstances and your chosen loan amount.
Wedding Loans for Bad Credit in the UK online
Bad credit history may often prevent you from availing a wedding loan in the UK, however, Oyster Loan may
help you avail a loan to plan and organise your dream day. This loan may be the solution to all your
financial needs such as paying for the venue, adding an extra layer on the cake, getting that wedding dress
you had your eyes on since the very beginning and a multiple of other expenses.
If you want to avail a wedding loan with
bad credit, then applying with us will not impact your credit score. Our lenders perform a soft credit
check in the initial stage to offer a soft quote to the borrowers. And once, the borrower decides the lender
they want to go ahead with, a hard credit check is conducted and the loan is disbursed.
Advantages of a Wedding Loan
An unsecured personal loan may help you fund a huge expense. A planned and organised wedding will
definitely require funds and in a shortfall of funds, one may easily avail a wedding loan. Most couples save
money for their big day, however, a little extra fund is always required when tying the knot. There are
several advantages of a wedding loan that we’ve listed below:
- Unsecured Loan
A borrower doesn’t have to pledge collateral or any valuable asset to avail this short-term loan.
Therefore, there is no risk to your property. You can tie the knot happily without worrying much about it.
- Available Online
These high-cost short-term
credits are available online. A borrower doesn’t need to step out of their home to avail a
wedding loan. You may apply for a loan while sitting at the comfort of your home or while selecting your
wedding dress at the store. The entire process is carried online and within a few minutes you even get the
decision.
- No Guarantor Required
These short-term loans can be easily
availed without a guarantor. You do not need to find a co-signor for applying. Invest this time in finding
your caterer, or florist or go shop for your honeymoon.
- Repayment Flexibility
A borrower may choose their repayment period as per their convenience and ease.
Disadvantages of a Wedding Loan
It is wise to weigh your options after considering the pros and cons as doing so will help you form a clear
idea of your needs. Listed below are a few disadvantages of an unsecured wedding loan:
- High Cost of Credit
These credit products have a high rate of interest as they do not require any collateral or guarantor to
be pledged. As there are chances that the borrower may default, the lenders, therefore, charge a high rate
of interest for the risk involved for them.
- Impacts Credit Score
If you fail to repay the loan on time, it will impact your credit
history. You need to be sure of the repayments before you avail a loan. A bad credit score indicates
your management of personal finances. And sometimes, lenders consider your score to approve the loan
application.
Alternatives to a Wedding Loan in the UK
If you do not wish to opt for a wedding loan and are curious to explore the alternatives,
then there are various other credit products that may serve your purpose. Everything for a wedding costs
higher, let it be the venue, the caterers, the entertainers, everyone shoots their prices up when they hear
the ‘W’ word. And under such circumstances, it is not possible for everyone to organise the
event with the limited amount of funds available with them.
Consider the alternatives that you may choose to go ahead with:
- Credit Card
This method of funding is easy and convenient. But what about the grace period? You do not get much time
to return the amount you used. And moreover, the limit left on the card should be substantial to cover the
wedding expenses.
- Friends & Family
Our relatives, friends and family are our immediate support system during a financial crunch. Ask them to
help you arrange the funds and you can repay them later. It will not harm you to ask them to donate the
amount to your wedding fund rather than gift you something else.
- Credit Union
You may approach a credit union to fund your dream day. However, you have to be careful of the interest
rate they offer you.
Plan Your Dream Day – With Oyster Loan | UK
Oyster Loan is an FCA registered loan broker that operates across all the major cities of the UK. The
lenders we deal with are also authorised by the FCA and hence, we give utmost importance to transparency and
fairer industry practices.
Tying the knot may cost you expensive if you do not plan for it carefully. However, you may always opt for
a short-term loan to help you cover the expenses. Read our wedding
loan guide to help you plan your dream day.
A personal loan can make things much smoother during a shortfall of finances. However, it is important for
you to discuss all the options of finances available to you with your partner. Borrowing responsibly will
never harm your credit score, rather timely repayments will build your score.
To apply for Wedding loans in the UK, click
here.