It’s January and couples who are planning on getting hitched this year have already stated on deciding the wedding dates. A recent survey conducted by The Hitched revealed that more than 10,000 couples are looking forward to saying their vows on 20th June 2020. The season of wedding officially starts in February, as a total of 1,309 couples will be marrying on the 29th. Undoubtedly, weddings have become way expensive in the United Kingdom. The average cost of a wedding has reached at a staggering £32,000 and a shocking statistics released by Equifax shows that 62% of the couples saved up for their big day in advance and only a 4% of couples used a bank loan to manage the wedding finances. But rather than searching for banks that offer wedding loans, check other sources from where you can get access to funds to turn your dream into reality.
What is a Wedding Loan?
It is a personal loan that people take out to cover their wedding costs. They use the money for a wide range of purposes such as for buying the wedding rings, to buy their wedding dresses, or to pay for venue and catering. Some of the couples also use the funds to pay for their honeymoon expenses. A wedding loan is an easy and quick way to borrow funds when you need it and it also allows you to repay it in fixed monthly instalments. That means if you have a strong financial plan and if you can easily afford to manage the repayments, it will give you a financial breathing space. You can borrow the money without offering any collateral to the creditor as it is an unsecured personal loan.
Planning a Wedding with a Personal Loan
If you have already used up all your savings and still falling short of funds, then a wedding loan will help you out of this trouble. Here are a few ways to plan a wedding with a personal loan that might prove to be beneficial for you:
Finance the Wedding
First things first. Plan on the finances, budgeting, and the sources of funds. Calculate the total amount of money that you are planning to spend on your wedding. Check whether you have that much amount or not. Prepare a budget and allocate money to each category like the dress, makeup, ring, cake, venue, videography, wine, catering, cards, gifts and presents, etc. When you are done with the list and allocation of funds, check how much amount you are left with.
Tip: Never allocate the entire amount as you may need something at the end moment. So, keep the cash readily available for such situations.
Slash the Costs
By trimming the costs you can save a significant portion of your funds. For example, rather than investing your time to think about things to write in a wedding card, use some cool and funky online tools that come for free. Design an e-card and send it out via emails or messages to your dear ones as an invite. This way you are saving money and the environment too. Another way to save money is by slashing the tiers of your cake. Grand cakes will cost you more, reduce the tiers while keeping in mind that everyone in your celebration just needs to taste the cake and not eat it to fill them up.
Choose the Date Wisely
Tying the knot on weekends is an expensive affair. Choose a date that falls in the middle of the week to save money on the venue. The average cost of a wedding venue in the UK is £4,354. So, if you finalise a date that falls in the midweek, you will get lower comparatively. Also, you can utilise the weekend to take your time off and enjoy your honeymoon.
How to Borrow a Wedding Loan with a Bad Credit Score?
Having a bad credit score restricts your options to find a personal loan. This is because lenders mostly assess your loan application on the basis of the score that you have. With a bad credit score, lenders start considering your profile as a probable risk and assume that you may default on the repayments. For this reason, many lenders may turn down your loan application. However, there are a few other lenders who willingly take on the risk by offering personal loans to individuals with a poor credit score. The rate of interest that you have to pay may be high and some creditors may also require you to arrange a co-signor who can vouch for your loan application. Oyster Loan is a loan broker that has associations with lenders who offer bad credit wedding loans. You just have to fill in the application form and submit it and wait for the decision. It is as easy as it sounds.
Wedding Loans Vs Credit Cards – Who Wins?
This is a very general thought that may strike you anytime. A credit card is undoubtedly good for emergencies but the rate of interest that is levied on it is too high as compared to a wedding loan. If you do not wish to pay heavy charges on the card, you have to make the complete repayment on your next bill due date. And if you do not have sufficient amount to pay for the balance, you will have to pay the high-interest rates. The case is totally different from a wedding loan. If you have a good credit score, the APR of the loan offers will be low. The interest will be fixed and the monthly repayment amount will be fixed. Also, with a wedding loan, you can use the money in cash so it becomes easier to spend it for any purpose.
So, if you have funds to pay off the entire credit card balance, then choose a credit card to pay for the wedding expenses. But if you need a breathable financial space, then a wedding loan will suit you better.
Click here to start filling the application for a wedding loan.