How to Get Wedding Loan You never Pay Back – Weddings often cost a lot, and you might not have enough money saved up to pay for them. A wedding loan can help you plan your perfect day if you can afford to make the payments each month. All of your wedding expenses can be paid for with wedding loans or unsecured personal loans. While banks, credit unions, and online lenders all offer wedding-related personal loans, online lenders typically come out on top. You could receive funds within a few business days after submitting your online application that is simple and seamless. To find the best lender for you, read this article to figure out the list of the best wedding loans for you along with other useful advice that is provided throughout. Apart from wedding loans, there are a few organizations that provide free wedding dresses to low-income brides. You can reach out to these associations if you can not afford to buy a new wedding dress.
Highlights of this Post
List of some of the best wedding loans providers
Some of the best wedding loans providers are as follows :
LightStream is a consumer lending division of Truist that provides unsecured personal loans from $5,000 to $100,000, and it was established as a result of the merger of SunTrust Bank and BB&T. The purpose of the loan determines the loan amount. Although some lenders provide loans that are smaller than the LightStream minimum, very few lenders provide loans with a higher maximum.
It is a great option for people who want to spread out the payment of large expenses over a longer period of time because repayment terms range from two to seven years. LightStream does not charge any origination, late payment, or prepayment fees, in addition to providing terms that are attractive and adaptable. In addition, the lender provides a rate-beat program, a 30-day loan experience guarantee to confirm borrower satisfaction, Covid-19/hardship assistance, and a rate discount of 0.50% for auto paying customers.
For applicants who meet certain requirements, LightStream will beat a competitor’s interest rate by 0.1 percent. Applicants can get in touch with the lender’s customer support team seven days a week; LightStream provides loans in all fifty states in addition to Washington, D.C., and Puerto Rico. From Monday through Saturday, current borrowers have access to customer support. Additionally, although LightStream does not provide a loan management mobile app, customers can access their accounts via LightStream.com.
LendingPoint is an Atlanta-based online lender that provides prospective borrowers in the 48 states and Washington, D.C., with personal loans; Nevada and West Virginia are the areas where it doesn’t offer loans. In states that are eligible, prospective borrowers can submit an online application for quick funding.
Personal loans from LendingPoint range from $2,000 to $36,500; The minimum loan amount for Georgia loans is $3,500. The repayment terms range from two to five years, or 24 to 60 months. LendingPoint has two main disadvantages: high origination fees and maximum APRs.
Origination fees at LendingPoint range from 0 percent to 6 percent, depending on where you live, although maintaining a high credit score typically prevents you from paying high APRs. But when it comes to receiving fast funding with a below-average credit score, LendingPoint is one of the best options you can go for.
Every state can get unsecured, fixed-rate personal loans through SoFi, an online lending platform. Since its inception in 2011, SoFi has granted loans of more than $50 billion and stands out for its capacity to extend loan terms and permit large loan amounts. SoFi is a great option for people with excellent credit who need to borrow a large sum of money because loans range from $5,000 to $100,000.
The available loan amounts may differ depending on your state of residence. SoFi is an extremely adaptable option for individuals with sufficient credit (minimum 650) and annual income (at least $45,000) because repayment terms range from two to seven years. Additionally, prospective borrowers can apply jointly through SoFi, but co-signers are not permitted. A relatively low annual percentage rate is paid to approved borrowers. Additionally, SoFi does not charge any prepayment penalties, late fees, or origination fees—a standout feature given that personal loan lenders frequently charge origination or late payment fees at a minimum.
However, if you’re thinking about getting a SoFi debt consolidation loan, keep in mind that the lender doesn’t pay borrowers directly to their other creditors. This means that you will be responsible for repaying each of your other lenders on your own after the loan funds are deposited into your bank account. Customers can change their payment due date once a year and get unemployment insurance through the platform, among other benefits and discounts.
Launched in 2017, Upgrade makes credit and banking services available online and on mobile devices. The platform has since expanded its online and mobile services and made more than $3 billion in credit available to over 10 million applicants. Upgrade offers loans to people with poor credit histories, despite having maximum APRs that are higher than those of other online lenders. The flexible loan amounts can range from $1,000 to $50,000. The terms of the loan range from two to seven years.
Upgrade charges an origination fee of between 1.85% and 9.99% of the loan, and borrowers who pay more than 15 days late or do not make their payments will be charged a $10 fee; autopay does not qualify for any discounts. However, Upgrade borrowers are not subject to a prepayment penalty, so if you can pay off the loan early, you can cut costs overall. Upgrade’s mobile app makes it easier for borrowers to view their balance, make payments, and update personal information, in addition to providing accessible personal loans. The Credit Heath tool in Upgrade also makes it simple to keep track of your credit score throughout the duration of your loan.
If your application was submitted without errors and the loan was funded on a weekday, you can get your money from Discover Personal Loans as early as the next business day. Therefore, this lender may be appealing if you require urgent funding to begin booking your venue and other services.
Discover does not charge any origination fees, but there is a $39 late fee if you don’t pay back your loan on time every month. There’s no punishment for taking care of your advance early or making additional installments around the same time to eliminate the interest.
Through its partners, Universal Credit is an online lending platform that provides personal loans of $1,000 to $50,000. The repayment terms range from three to five years, or 36 to 60 months. Even though Universal Credit makes it possible for people with bad credit to get a personal loan, there are some drawbacks. First, it has a high annual percentage rate (APR) that is significantly higher than the lowest rates of others. Second, all personal loans are subject to a 5.25% to 9.99% origination fee from Universal Credit. You will need to account for this when determining the amount of your loan to ensure that you receive the necessary amount after the fact because it is deducted from your loan proceeds.
Wedding loan you don’t pay back unless you divorce
Few companies are there to provide wedding loans that don’t require repayment unless you get divorced.
SwanLuv
SwanLuv is one such organization. SwanLuv is a Seattle-based company that gives couples a loan of up to $10,000 to pay for their wedding by using software that is based on algorithms to determine how strong their relationship is. Assuming that the couple gets separated in the span of 5 years of the wedding, they need to reimburse the loan amount along with interest. However, they will never have to pay anything if they remain married.
WeddingCrowd
Another organization that gives a wedding loan that you don’t require to pay back unless you get divorced is WeddingCrowd. WeddingCrowd is a crowdfunding platform that permits people to raise cash for their weddings. If a pair raises sufficient cash though WeddingCrowd, they do not need to pay off the loans. However, if they don’t gather sufficient money, they ought to pay off the loans with interest.
Marry Me Loans
Marry Me Loans that provides up to $50,000 in wedding loans, is yet another instance. The loans have no interest, but the couple must repay the entire amount if they divorce within five years.
WeddingFinder
A website called WeddingFinder lets couples raise money for their wedding through crowdfunding. On the website, couples create a profile and invite their loved ones to contribute to their wedding fund. WeddingFunder receives a 5% donation cut. Jason Mendelson and Adam Covitz, two businessmen, set up WeddingFunder in 2012. New York City serves as the headquarters of the business. Investors like First Round Capital and Khosla Ventures have contributed more than $10 million to WeddingFunder. Over 10,000 couples have used the website to raise money for their weddings. On WeddingFunder, the typical sum raised for a wedding is $10,000. Couples looking for a way to cut costs on their wedding often turn to WeddingFunder. Couples can get creative with their fundraising efforts on the website and reach a wider audience than they could on their own.
WishingWell
WishingWell A website referred to as WishingWell where couples make a desire list for their wedding ceremony. Gifts from the couple’s wish listing can be purchased by guests.
Honeyfund
A website known as Honeyfund allows couples to prepare a honeymoon registry. Instead of giving the couple the conventional wedding items, guests can make donations to the honeymoon fund.
WeddingWish
WeddingWish is a website that permits couples to make a honeymoon and wedding registry simultaneously. Guests should purchase objects from the couple’s wish list or donate to the marriage fund.
For couples who are concerned because of the financial burden of a wedding, these forms of wedding ceremony loans might be an excellent choice. However, it’s crucial to keep in mind that the loan will need to be repaid in the event of a divorce and that may be a large financial burden. You may not need to pay return these wedding loans unless you get divorced, so right here are a number of their pros and cons :
Pros:
- If you and your spouse stay together, you should not worry about repaying the loan.
- You are probably able to get a larger amount of loan than you’ll obtain from a conventional lender.
- A lot of the loans do not require interest charges.
Cons:
- You will be required to repay the whole loan amount in case you divorce.
- The loans may be tough to get permitted for.
- The loans’ conditions may be complicated.
- Because you are making a bet that your marriage will last, this kind of loan can be regarded as a big gamble.
It is crucial to conduct research and understand the risks involved in case you are thinking about applying for a wedding loan that you will not be required to repay until you get divorced. If you want to realize if this form of loan is right for you, you ought to additionally communicate to a financial consultant. Besides, there are a few grants available to pay for weddings for couples who are financially struggling or for couples who have major health issues.
Way to Apply for a Wedding Loan
To apply for a wedding loan, follow these general steps, even though the process varies from one lender to the other:
Evaluate your credit score
Start by evaluating your credit score for free on a website that gives free scores or on the credit card company’s website. You will learn about your chances of qualifying and your creditworthiness from this. Try to get at least a 610 score; However, the most favorable terms will be obtained with a score of at least 720.
Take steps to raise your credit score if necessary
Prior to applying, take the time to improve your score by paying off unpaid debts or reducing your credit use if your score is below 610 or if you want to improve it to get the best terms.
Find out how much money you’ll need to borrow
Calculate your wedding’s budget after checking your credit score to determine how much money you need to borrow. But keep in mind that you will get your money in one lump sum and will have to pay interest on it all; therefore, only borrow what you absolutely need.
Look around for the best interest rates and terms
Before submitting your application, many lenders will let you prequalify, allowing you to see the terms you would receive from a simple credit inquiry. You can shop around for the best rates without harming your credit score by prequalifying.
Send in a formal application and wait for a decision on a loan
Submit your application either online or in person after locating a lender with the best terms for your situation. This procedure can take anywhere from a few hours to a few days, depending on the lender.
Tips to compare Wedding Loans
When comparing personal loans for the purpose of wedding or other expenses, keep these considerations in mind:
Prequalify whenever possible
The ability to prequalify for a loan is provided by numerous providers of personal loans to potential borrowers. This means that the applicant can provide information about their requirements for financing, income, housing situation, and other relevant factors to determine the kinds of loan amounts, interest rates, and repayment terms they might be eligible for. Even better, you can shop around without harming your credit score because this procedure typically only requires a soft credit inquiry.
Pay attention to any additional costs
Borrowers can get a personal loan from a few lenders without having to pay any of the usual loan costs, such as origination fees, late fees, prepayment penalties, or other fees. However, this is more of an exception than a rule, so when looking for the best loan terms, it’s important to ask about fees. Also, if a lender charges an origination fee, find out if it is included in the APR or deducted from the loan amount, as this could affect the amount of money you need to ask for.
Evaluate the lender’s options for customer service
Even though customer service may not seem like a big deal when you first get your loan, it can make a big difference if you have trouble making payments or have a hard time making ends meet during your repayment period. To make sure it’s a good fit, look at the lender’s customer service resources and read reviews from previous and current borrowers.
Conclusion
Getting the right personal loan can make big expenses like a wedding seem more manageable. Pay close attention to things like low or no fees, the ability to get money quickly, and the maximum amount you can apply for a loan. In case you’re opting for wedding loans that you don’t need to repay unless you divorce, then make sure to read the terms and conditions of the loan carefully. Wedding loans are surely a very effective way to cover the huge expenses required for your special day when you have not saved enough money or even have a moderate credit score. But make sure to do your own research and go through the repayment schedule, origination fees, late fees or any extra charges set by the lender before applying for a loan. Furthermore, there are free Government grants for married couples that are very useful for married students to help pay for college and other expenses. Federal Pell Grant, State Grant and FSEOG are some of the instances of government grants for married couples.
Frequently Asked Questions
What is meant by a Wedding Loan?
A wedding loan is an unsecured personal loan that means that it doesn’t need any collateral like a savings account that the lender can take back if the terms of the loan aren’t followed. Personal loans are a convenient way to pay for typical wedding expenses like the venue, photographer, and catering because you can use them for almost anything. The typical amount of a wedding loan is between $1,000 and $100,000. You are required to make payments every month, and your loan can be paid off in one to seven years. Interest rates are heavily influenced by your credit score, and applicants with good to excellent credit are eligible for the best rates.
How a Wedding Loan Can Impact My Credit Score ?
The majority of lenders provide a prequalification process for loan applicants, allowing you to see what terms you might be eligible for without harming your credit score. However, as part of the formal application process, a hard credit check is required that results in a one to five point temporary drop in your score. Your payment history accounts for 35% of your credit score, so making on-time payments will help you build credit, even if your score drops temporarily for up to a year.
How much money can I borrow for my wedding ?
The sizes of personal loans offered by lenders range from $500 to $100,000. Consider how much you can afford to pay each month before applying, as you will be required to repay the entire loan amount plus interest.
When is the Right Time to Get a Loan for Your Wedding ?
A wedding loan might be something you should think about if you don’t have a lot of money saved up and don’t have enough time to do so. A wedding loan is usually only a good idea if you can afford it because of the financial commitment. You can obtain a favorable interest rate;
be confident that you can afford to make your monthly payments on time; or you can anticipate receiving cash as wedding gifts and use it to help repay your loan. If you decide to take out a wedding loan or any other kind of loan, for that matter it is essential to only do so if you are confident that you will be able to repay the loan within the terms that have been agreed upon. It’s not a wise financial move to make if you can’t pay back the debt. If you don’t pay back your loan, it could hurt your credit score a lot and come with additional fees.
What are the Pros and Cons of a Wedding Loan
There are certain pros and cons that come along with a wedding loan, that are as follows:
Pros –
Wedding loans typically have interest rates that are lower than credit cards.
You can use the money to cover nearly all wedding costs.
Depending on the lender, repayment terms typically range from one to seven years, providing ample time to repay the loan.
Cons –
- Depending on how quickly you repay the loan, wedding loans could keep you in debt for years.
- Borrowers with fair or poor credit may have trouble qualifying and, if approved, they will likely pay a higher interest rate.
- If you take out a loan for your wedding, you’ll start your marriage in debt.
