Your wedding should be one of the most wonderful days of your life; unfortunately, this often makes it one of the most expensive. The average wedding in the United States costs approximately $26,000 — and that’s not even including the honeymoon!
Highly-targeted advertising and a celebrity-obsessed social media means couples planning their wedding are constantly bombarded with images of “perfect weddings.” Pinterest and Instagram can provide fantastic ideas, but they also expose couples to options that might be outside their budget.
It’s no surprise that couples and their families are increasingly looking to borrow to fund their wedding or honeymoon.
Our guide below will help you answer any questions you have about wedding loans, so you can feel comfortable with whatever decision you make.
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1. What are wedding loans? How do they differ from personal loans?
Wedding loans are personal loans — there’s no difference. Banks and lenders do not have a specific loan for this purpose; even if you see advertisements for loans by this name, they’re just ordinary personal loans with a fancy name.

2. What are the advantages and disadvantages of wedding loans?
The advantages
The one key advantage of wedding loans is that it allows you to spend more on your special day. For some people, their wedding day may be something they have dreamed about and planned for years in advance, and having certain aspects of it just right might be very important.
For others, the loan is more functional. For example, you may want to pay for your daughter’s wedding but don’t have enough savings to do so. In this case, these loans can cover the gap.
The disadvantages
When you take out a loan, you are spending money you don’t yet have, and in return, you’ll have to pay back the amount in full, plus interest. The real problem is that debt adds stress to a marriage. Different spending habits and attitudes to debt can put a strain on any relationship, and disagreements about money are still one of the biggest causes of divorce. In a study conducted by the Austin Institute For The Study of Family and Culture, 24% of divorcees cited financial reasons as a key reason for divorce.
For some couples, the thought of starting their marriage with the pressure of debt is enough to dissuade them.
3. How much can I borrow and how much will it cost?
Loans range from about $2,000 to upwards of $25,000. The cost will vary according to the fees you are charged, the interest rate you receive and the length of time over which you make payments. Another important factor is your credit score, which is a method financial institutions use to calculate the risk of borrowing to you.
According to credit and finance expert Robert Jellison, “one of the benefits of having a good credit score is that you’ll be able to qualify for loans with significantly better interest rates than someone with a fair or poor credit score.”
For example, Bankrate estimates that a person with a good or excellent credit rating taking out a $10,000 loan with a three-year repayment schedule will pay, on average, 4.29 percent APR.
The APR, or Annual Percentage Rate, is a standardized way of showing the total cost of borrowing over a year, and includes both interest and other fees; for the purpose of taking out a loan, a lower APR is better. So if you borrow $10,000 over a year with 4.29 percent APR you’d pay $429 in interest and fees.
Someone taking out the same loan with a fair credit rating can expect to pay 10.66 percent APR, while a poor credit score increases the interest to a whopping 25 percent APR (rates are averages, current as of publication 07/08/2017). As you can see, your credit score drastically affects the amount of interest and fees you pay when borrowing money.
4. I Understand the Risks, and I Want a Wedding Loan — How Do I Get One?

Speak to your partner first before applying. Taking out a loan to cover the costs of your wedding will impact both of you, and it is not a decision you should make alone.
You must also agree how much you want to borrow; prioritize what you want to achieve and factor in the interest and fees before deciding how much you need. It may be better to borrow less and get just the essential items.
Finding the Right Loan
A wedding loan is just a personal loan with a fancy name. The rates and fees you are offered as a “wedding loan” may be worse than those advertised as personal loans. Shopping around and getting several quotes could save you a significant amount of money.
In addition to banks, you can now borrow money online from websites such as LendingClub. These businesses connect borrowers with investors looking to lend money and can offer better rates.
A word of warning: always research the reputation of a website before using it. The lender should be registered in your state and operate under a bank charter; this information should be easily found on their website.
Before you receive a loan, you’ll have to provide information about your financial situation. Assuming you pass the organization’s checks, you’ll be offered a loan. The interest rate you’re quoted may differ from the advertised rates, depending on how they perceive the risk of lending to you.
5. I’d Rather Not Get a Loan — What Are the Alternatives?
If you don’t want to take out a personal loan, you have a couple of other borrowing options:
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- Borrow on a Credit Card – This option might charge more than a personal loan, although some credit cards give you low interest for the first 24-36 months of using the card. Borrowing on a credit card can get very expensive if you don’t pay it back quickly.
- Borrow from Family – The Bank of Mom and Dad typically offers very competitive interest rates, but with the downside that it may cause some family friction if you’re not able to pay it back.
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Need some help cutting costs from your wedding budget? Read our article, 60+ Tips to Plan a Wedding on a Budget for practical advice on how to cut thousands from your budget.
The best (non-borrowing) option is to limit your spending to what you can afford. This might mean increasing the length of your engagement or making certain sacrifices to ensure you can achieve your wedding on a budget. You could also save money by changing which day of the week your wedding is on, opting for less expensive add ons, or even by postponing the honeymoon for a few months.
Are you considering a wedding loan? How did you manage to budget for your wedding? Let us know — we would love to hear from you! Plus, don’t forget to check out our Facebook and Pinterest pages for more wedding inspo!