Are you thinking that how to get a wedding loan with bad credit? Check our step-by-step guide to find out more.
People often say that their wedding day is the most special day of their lives, and they usually spare no expenses when planning for it. After all, weddings are incredibly expensive. The grander the ceremony, the more bloated your bill will end up being. That is why a lot of people look to wedding loans to help finance their big day.
But how exactly do you get a wedding loan? And what should you do if you have a bad credit score? Today we will be answering those questions and more about wedding loans.
Wedding loans are essentially personal loans and work the same way. Personal loans are loans with no collaterals required that may be used for any purpose, thus why couples often use them to finance their wedding. Some lenders may market their product as a “wedding loan”, but the loan term and interest rates will be similar to their regular personal loan options.
You can use wedding loans to cover expensive wedding day expenses. This may include venue deposits, hiring vendors, purchasing a sparkling wedding ring, travel arrangements for the wedding, or even your honeymoon! But it is important to make sure you will be able to pay back the loan as you don’t want to start your marriage life being constricted by debt.
One of the most common places where couples can get a loan is the bank. All banks offer unsecured personal loans and it is a good idea to start there. You can also apply for loans from your local credit union if you are already a member.
As stated earlier, wedding loans are pretty much the same as personal loans, so the cost of getting one is also calculated in the same way. The amount borrowed, the loan term, and the interest rate charged are all determined by your credit score and history.
So what if I have a bad credit score?
Well, don’t you worry! There are many people out there with bad credit, and therefore many lenders who cater to this particular demographic. Wedding loans for bad credit are quite easy to look for and have similar parameters to regular bad credit loans.
Bad credit wedding loans are approved not based on your credit score, but rather based on your income, asset-debt ratio, and overall financial situation. If you only need to borrow a small amount and you’re confident in paying it off soon, you can apply for bad credit loans at short-term lending networks.
On the other hand, if you need a large sum you may need to look for installment loan providers. These providers may be tougher to get approval from and may charge higher interest rates. Using a co-signer may help you get better loan terms.
Another option you can look into is a home equity loan. If you have equity in your home, this option is very favorable as they have some of the lowest interest rates out there for people with bad credit. However, it is also very risky as failure to pay the loan may cause the lender to foreclosure your home.
Furthermore, inquiring to see if you are eligible for a wedding loan will not hurt your credit score. This type of inquiry is called a soft credit inquiry and will show up on your credit report without negatively affecting it. Your credit score may be affected only if you decide to move forward with the loan application and do a hard credit inquiry.
The bottom line is that choosing a loan for bad credit wedding financing is a complicated task. You will need to do your due diligence to find the best bad credit wedding loan out there. Also, make sure you have the financial means to pay it off later so that you won’t further worsen your credit score. Now go out there and plan that dream wedding of yours!