The cost of preparing a wedding has risen dramatically, making it difficult for the typical Jane to afford one on her monthly salary. As a result, more people are using personal loans to pay for their weddings.

Personal loans don’t require a security deposit, so you can get the money without putting down a down payment (unlike a mortgage or vehicle loan, for example) and use it for whatever you choose.

Is a personal loan the best route for you? What are the best places to look for personal loans? And, when weighing your options, what should you look for? Everything you need to know about funding your special day is right here.

Is It Really Necessary?

If you have to, you can choose take out a loan. However, before you send out those applications, be sure it’s the right fit for you. In general, a personal loan should not be taken out if:

• The majority of the wedding is being covered by someone else.
• You have really poor credit and will be unable to obtain favorable conditions.
• You have the financial means to pay for it in another way.

On the other hand, taking out a personal loan to pay for your wedding might be an excellent choice if:

• You need access to a substantial sum of money that you can spend on whatever you want.
• You don’t want to have to juggle multiple payments in a row (such as various vendors or credit card bills)
• You want spread out the payments
• You don’t have enough money to pay your bills.

Analyze the Data

You might not know where to start when it comes to securing a personal loan. Making a budget will give you a better idea of how much your wedding day will cost in real dollars. To begin, do the following:

• Make a comprehensive list of everything you’ll require for the big day. Vendors, clothing, transportation, and other costs should all be included. The venue, band, flowers, dresses, hotel, honeymoon, photographer, wedding favors, rings, and unforeseen expenses are all things to keep in mind.
• Investigate how much these items would cost in the real world. You can look for information on the internet, in stores, or by asking friends. Do your homework and look for the greatest offers.
• Make your own budget based on a reasonable price range. Decide how much you’re willing to spend on each aspect of the event with your partner. Some elements may be more significant to you than others (for example, a large dance floor or vibrant floral bouquets), while others may be less so (ex. a smaller band or local photographer). You have the option of allocating more money in your budget to the things that are most important to you.

Consider how you can save money as well (ex. e-vites instead of paper invitations, disposable cameras instead of a professional photographer, etc.). After you’ve considered all of these factors, crunch the numbers to determine how much you’ll actually need for a personal loan and base your application on that figure.

Accurate Rates and Financial Information

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Loan Requirements, Average Terms, and APRs

A personal loan allows you to borrow a significant sum of money at once while also allowing you to repay it over a long period of time. This ensures that you can repay it responsibly and without the financial burden that comes with a large debt. However, it’s critical to find a loan that offers you the best rates and flexibility, pay close attention to the loan’s terms and the standards you’ll need to meet in order to qualify for these terms.

The APR is the most important phrase to consider. This is a total of how much you will pay over and above the loan amount; therefore it makes a significant impact. A personal loan’s APR (annual percentage rate) might range from 5% to 35%, depending on your credit history, loan size, lender, and payback period. The higher the APR, the more you’ll have to pay out in the long run. While lending markets such as LendingClub can get you some pretty low APRs, direct lenders such as SoFi will usually have the best terms if you qualify.

Also, look for a lender with reasonable repayment conditions so that you are not obligated to make monthly payments that you cannot afford. LendingTree, for example, offers loans up to $35,000 and contracts as long as 180 months, allowing you to make manageable monthly payments. You will be able to pay off your debt with reasonable ease as a result of this.

Another key element to consider is eligibility, as all lenders have specific requirements that must be followed in order to qualify for their loans and reduced rates. Lenders use your credit history to determine how responsible you will be in repaying your loan. The better your credit score, the more likely you are to get approved for a loan at a reduced interest rate. However, some marketplaces, such as Fiona, can help you identify lenders who work with credit scores as low as 580, so there’s always a place to turn.

What to Look for When Choosing the Best Wedding Loans

You want to identify the best supplier for you once you’ve decided that a personal loan is the best solution for you. There are hundreds of possibilities available online, so don’t take the first one that comes your way. Instead, weigh your options to discover which one offers you the most benefits. Loan aggregators, such as AmOne or LendingClub, allow you to receive many offers at the same time and compare the terms to choose the best deal.

Borrowers can also look for the most favorable terms, such as low APRs (as noted above) and:

1. Rates that are set

While variable rates offer the possibility for savings, fixed rates are a definite thing, which is especially useful when you’re just getting your feet wet with new financing conditions (like marriage). No matter what happens in the market or the economy, fixed-rate loans set the terms of the loan, and they never alter. This makes budgeting for a new couple a lot easier.

2. There is no penalty for paying in advance.

Of course, if you have the funds in advance, paying off your loan sooner will save you money in the long run. However, make sure the loan provider doesn’t charge you a prepayment penalty if you pay off the loan early.

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Alternatives to Getting a Loan

Are you unsure if a personal loan is a right choice for you? Instead of going to a loan, consider these cost-effective alternatives:

1. Request a financial advance from relatives or friends.

2. Reduce the number of big-binder plans you have for the day.

3. Before you choose a date, put some money aside.

4. Enlist the help of talented friends and ask for their help instead of wedding gifts.

5. Use credit cards that have a 0% interest rate.

A personal loan may be the answer to your wedding day blues, depending on your unique scenario. Read our reviews of the best lenders first. Then do the math, check what kind of terms you can get, and determine with your spouse whether this is the best option for you. Finally, go out and make your fantasy day a reality.