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How to Finance a Wedding

Updated
Dana George
Ashley Maready
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There's no denying that a wedding can be expensive, but a personal loan may help. Here, we'll cover the average wedding cost, how personal loans work, and other options for covering the expense.

How much do weddings cost?

Nationally, the average cost of a wedding in 2023 was $29,000. How much you'll pay depends on factors such as:

  • The city where the wedding takes place
  • The venue
  • Catering and rental expenses
  • Transportation costs
  • Type and cost of entertainment

Getting a wedding loan

Strictly speaking, there is no such thing as a "wedding loan." A wedding loan is normally a personal loan you take out to cover the costs of a wedding. There are several ways to borrow money for your wedding expenses, but no specific product category covers nuptials only.

Compare the best personal loans

Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.

Lender APR Range Loan Amount Min. Credit Score Next Steps
Fixed: 8.99%-29.99% APR (with all discounts)
$5,000 - $100,000
680
7.99% - 24.99%
$2,500 - $40,000
660
7.80% - 35.99%
$1,000 - $50,000
300

How a personal loan for a wedding works

Most wedding loans are personal loans. There are two types of personal loans -- secured and unsecured. With a secured loan, you put something of value up as collateral. With an unsecured loan, no collateral is required but the interest rate may be a touch higher.

Pros and cons of personal loans

If you're considering taking out a personal loan to pay for your wedding, it's wise to consider the pros and cons.

Pros

  • You may be able to borrow the entire amount needed to cover the cost of the wedding.
  • You decide which type of loan works best for you -- secured or unsecured.

Cons

  • You'll owe interest on the loan, and if your credit score is low, your interest rate may be high.
  • You enter marriage with an extra debt hanging over your head.

If you're planning a wedding, you have a lot on your plate and are undoubtedly making dozens of decisions. The decision to borrow money to pay for the wedding is a serious one, so take your time and weigh your options.

Getting a low-interest wedding loan

The goal with any loan is to land the lowest possible interest rate. Here are some of the factors lenders consider when deciding your rate.

Your credit score

The higher your credit score, the lower the rate you'll be offered. If your credit score is on the low side, consider boosting it before applying for a loan.

Employment and income

Lenders ask for proof of employment status and how much money you earn to determine whether you can afford monthly payments. The more secure your financial situation is, the less you're likely to pay in interest.

Secured or unsecured

Those who take out secured loans typically pay a lower rate. That's because the lender can repossess the collateral if you miss payments. Carefully consider whether a lower rate is worth the risk.

Your repayment timeline

The longer your loan term, the more lenders worry something might go wrong with your repayment. They frequently offset the additional risk by charging a higher interest rate. The workaround is to take out the shortest-term loan you can afford, which will ideally lead to a lower rate.

How to apply for a wedding loan

If you decide that taking out a personal loan to pay for your wedding is right for you, here's how it's done.

1. Check your credit score

High credit scores tend to be rewarded with lower interest rates and loan fees. Before applying for a loan, check your credit score. If your score is low, consider taking steps to boost it.

2. Decide how much you want to borrow

Determine how much money you'll need to cover the wedding costs. Next, see if you have cash available to put toward the expenses or if you want to borrow the entire amount.

3. Rate shop

Check several lenders, specifically focusing on the annual percentage rate (APR). The APR includes interest, fees, and other charges and gives you a better idea of how much the loan will cost.

4. Decide on a lender and apply

Once you've shopped lenders and have decided which you want to work with, fill out a loan application. If approved, carefully read through the loan agreement and ask questions if there's anything you don't understand. Sign the loan agreement, await loan proceeds, and plan to make your first payment approximately one month later.

Alternatives to a personal loan

Credit cards

If there was a class called How to Finance a Wedding 101, the first thing you would learn is that credit cards are a dangerous way to pay for a wedding. Imagine you financed $10,000 of your wedding costs with a credit card with 15% interest. Even if you make monthly payments of $225, it will take you 66 months to pay the card off.

In addition, you will pay an extra $4,688 in interest. Even if you use a 0% intro APR credit card, you must be certain you can pay off your balance before interest comes due.

Cash

Marriage comes complete with unique challenges, such as learning how to blend two once-independent lives. Even if you have lived together, something about being married changes the relationship's flavor. Adding debt to the mix is, at best, fraught with risks.

In a perfect world, you would save enough cash to pay for your wedding and begin the new chapter of your life with one fewer financial burden.

Family contribution

Maybe you can't afford to pay for the entire wedding yourselves. Why not ask your parents and grandparents to pitch in what they can? As long as you don't raise your budget accordingly, you may be able to pay for the remaining portion in cash or at least push the wedding back long enough to come up with your portion.

Hybrid

Decide how much you can afford -- today, without a loan. Do you have $1,000 cash that's not earmarked for something important (like an emergency fund)? Do you have a credit card with a 0% promotional rate that you could tap and pay off before the promotional rate expires? Could you spare an extra $50 a month to put toward your wedding fund?

Move the financial pieces around like a Rubik's Cube. The more money you can pull together, the less you will have to borrow.

Final thoughts

Anyone who has been married for years will tell you that a great relationship is built on many factors, including mutual respect, shared goals, and trust. No one ever looked back after decades of marriage and said that the wedding was the best thing about being together.

If your big question is how to finance a wedding, chances are, you are already feeling stressed. Why not go easy on yourself and build a wedding around what you can afford? The people who care about you will celebrate, no matter what.

FAQs

  • Don't be surprised if you're told no. It's nothing against you, but small businesses are becoming accustomed to people who want to trade discounts for exposure. Your best bet is to budget for a wedding you can afford.

  • Your credit score impacts everything, from whether you're approved for a loan to how much you'll pay in interest and fees. Whether you're considering a personal loan or not, it's always a good idea to keep an eye on your credit score -- just in case you apply for credit in the future.

  • Officially, yes. However (and this is a big "however"), carefully consider how much debt you're willing to take on for an event that will be over before you know it. Unless you set a strict spending limit, you may find yourself with far more debt than you're comfortable carrying into married life.