Wedding loans: How you can get a loan for a wedding

Getting married is a huge milestone in your life. If you’re about to tie the knot, congratulations are in order, but beyond being a time of joy and excitement, getting married can be a time of stress. Planning a wedding is a huge undertaking, and paying for one isn’t cheap.

If you’re wondering how you’ll be able to pay for your wedding, Rocket Loans^SM is here to help. We’ll cover options for financing the festivities on your big day.

What is a wedding loan?

Before we dive in, it’s important to note that there isn’t actually a specific type of loan called a wedding loan. However, there are loans that you can use to pay for a wedding. What you’re looking for is a personal loan.

Personal loans are highly flexible loans you can use for almost any purpose. They are unsecured loans, meaning you don’t need to worry about offering collateral, but lenders will do a deep dive into your finances and credit to see if you’re a good fit for a loan. They’ll check your credit score, debt-to-income ratio, and more.

Personal loans can vary in size. With the typical wedding costing $33,000 ($39,000 for a destination wedding), a personal loan should be able to help cover a lot of the cost.

What can you use a wedding loan for?

Remember, there are no specific loans called wedding loans. Instead, you’ll be looking to get a personal loan. The good news is that you can use the funds from a personal loan for just about anything related to the wedding itself. This can include any or all of the following:

• Buying an engagement ring
• Booking a wedding venue
• Paying for a catering staff
• Purchasing wedding insurance
• Financing the honeymoon

Some people will use their wedding loan to finance the entire wedding – the ceremony and the reception. There are a few limitations to what you can spend this money on. Since the wedding was the reason for taking out the loan, though, it’d be wise to keep your spending related to that.

Can you use a personal loan for a wedding?

Yes, you are allowed to use the money from a personal loan for many purposes, including paying for a wedding.

Personal loans are available from many sources, including banks, credit unions, and online lenders like Rocket Loans. When you apply, the lender will examine your credit, income, and other factors. Having stronger credit can often help you get better terms and lower rates, making the loan more affordable.

How to get a wedding loan

Applying for a personal loan is a generally fast and straightforward process. Follow these steps to ensure you can get approved for the best loan terms possible:

• Check your credit. You’ll want a good or excellent credit score when applying for a personal loan. Otherwise, you may end up with less favorable interest rates and loan terms.
• Get prequalified. A prequalification can show you what rates and terms you qualify for based on your credit and DTI. For this, you’ll need to submit some personal information and consent to a soft credit check.
• Compare lenders. Getting prequalified by multiple lenders will help you decide who you want to borrow from. Different lenders may offer you different rates and terms, and it’s important to understand all of your options when committing to a loan.
• Submit your application. Once you’ve chosen a lender, you’ll submit a formal application, along with documentation of your banking information, tax forms, pay stubs, and more. A lender will also do a hard credit check at this time.
• Wait for a response. With your application sent, all you can do then is wait for an approval or rejection. If approved, you can expect to see your money in 1 – 7 business days, or maybe even the same day if you apply for same-day funding with Rocket Loans.¹

Pros and cons of wedding loans

Wedding loans can be helpful if you want to pay for a wedding, but they’re not right for everyone, so be sure to consider the drawbacks.

Pros

Some advantages of wedding loans include:

• Quick funding. Many lenders can approve and fund your loans in just a day or a few business days.
• Fixed rates. Many lenders, including Rocket Loans, have fixed interest rates for their personal loans, helping keep payments predictable.

Cons

Before you apply for a wedding loan, consider these drawbacks.

• Long-term repayment. Getting a wedding loan means you’ll be paying for your special day for years to come, which means paying interest and could delay future goals like buying a home.
• Temptation to overspend. Having extra funds from a loan could lead to you spending more than you intended on your wedding.

Alternative wedding financing options

Before applying for a wedding loan, keep these alternatives in mind.

Credit card

Credit cards are known to have higher interest rates than other financing options, but you can get around that with a 0% APR introductory period. For many cards, though not all, when you sign up you can often enjoy a 12 – 18-month period of interest-free repayments. If you can pay back your balance within that window of time, you may be able to avoid paying interest altogether.

That may be easier said than done, though. The costs of a wedding can be extremely high, and if you can’t pay them off within that introductory period, those infamous interest rates may put you even further into debt.

Personal savings

Possibly the best way to pay for a wedding is out-of-pocket from your savings. You might consider tapping a portion of your emergency fund or taking money out of investments so you can avoid going into debt to pay for your wedding. Just be sure to keep enough money set aside to handle future emergencies.

Family loans

In the past, tradition often dictated that the bride’s family paid for the wedding, but these rules do not apply. However, that does not mean that the bride (and the groom!) can ask their parents and family to help cover some of the wedding costs or for a loan to pay for the ceremony.

Just remember that mixing family and money can lead to awkward relationships and stress, so be careful about using this option.

Downsize your wedding plans

Downsizing your plans may mean cutting out certain aspects of your ceremony or DIYing some of the work, such as making the cake yourself.

Look for ways that you can cut costs while still keeping your day special, which will reduce the need to borrow money.

Plan an off-season wedding

Peak wedding season tends to be late spring through early fall, and that’s when things like venues and wedding services cost the most. Getting married during off-peak season, from November through April, may let you save money on your wedding.

Also, consider planning the ceremony for a Friday or Sunday to help keep costs low.

FAQ about personal loans for a wedding

Are there wedding loans for those with bad credit?

Personal loans require good or excellent credit scores in order to get the most favorable rates and terms. A lower credit score may qualify you for a loan, but the interest rates you get could do more harm than good. You should work on improving your credit score in order to qualify for the best rates possible.”

Do banks offer loans for weddings?

Many banks do offer personal loans that you can use for practically anything, including wedding expenses. Long-time customers may also be eligible for certain discounts or better rates. You can also borrow from credit unions or online lenders.

Can wedding loans impact your credit score?

Applying for a personal loan involves a hard inquiry into your credit history, which will impact your credit score by about 10 points. This is standard for most loans, though, and generally unavoidable. You can rebuild your credit by keeping up with your loan’s monthly payments.

The bottom line: A wedding loan can help pay for your dream day

Getting married is a special thing, and it’s natural to want to commemorate the day with a fantastic ceremony. However, paying for a big wedding can be a big expense. If you’re looking for a way to finance some of the cost, a personal loan can be one way to borrow money for a wedding if you have sufficient income and credit to qualify.

If you’re ready to apply for a wedding loan, you can begin your application with Rocket Loans today.

¹ Same Day Funding available for clients completing the loan process and signing the Promissory Note by 4:00PM ET on a business day. Also note, the ACH credit will be submitted to your bank the same business day. This may result in same day funding, but results may vary and your bank may have rules that limit our ability to credit your account. We are not responsible for delays which may occur due to incorrect routing number, account number, or errors of your financial institution.

Rocket Loans: All personal loans are made by Cross River Bank, a New Jersey state chartered commercial bank, Member FDIC, Equal Housing Lender. All loans are unsecured, fully amortizing personal loans. Eligibility for a loan is not guaranteed. This is not a deposit product. Please refer to our Disclosures and Licenses page for state-required disclosures, licenses, and lending restrictions. Please refer to our Terms of Use and please refer to Rocket Loans’ Privacy Notice and Cross River’s Privacy Notice to learn more about what we do with your personal information.