Should I Get a Loan for My Wedding

A wedding is arguably one of the most important days in your life, but does it have to be one of the most expensive? The wedding industry is one of the most expensive in the world and getting married in 2024 is not cheap. Many people rely on finance to have the best day for their friends and family, but the real question is should you get a loan to pay for your wedding?

A wedding loan can be a good option for couples who don’t have all the money to cover the expenses of their day.  However, it is always important to consider all your options and to look at all the factors, including repayment terms and interest rates. 

What you Need to Consider When Weighing up Wedding Loan Pros and Cons

Some of the other things to consider when thinking about a wedding loan, and many other loans, are your credit score, the paperwork you need to provide, the serviceability of the loan and the pros and cons. 

Wedding Loans Affect Credit Scores

Many lenders evaluate your credit score when assessing a loan application.  The quality of your credit score can help determine if your application with a lender will be successful.  A credit score, however, is not just a tool for a lender and it can affect you and your future as well. 

When thinking about a wedding loan, consider what does your credit rating score look like?  Will you be applying individually or with your future spouse and are you looking to make any big purchases soon that an additional enquiry or loan on your credit file will affect?

Paperwork is required to Apply for a Wedding Loan

Gathering the paperwork, you need to provide probably doesn’t seem like a big deal in comparison to the other things on this list, however, when you are already trying to organise a hundred things, gathering the correct documents, and getting them compiled can seem like a huge task. 

Many lenders, us included, use an online banking submission service to make it easier for you to get your bank statements to us.  We use Illion for our customers to securely submit their information and then they can email or upload the remaining documents required.

In some instances, different lenders will require different paperwork.  The best advice is to do it all at the one time. Make sure you have everything you need and then email it in one go so you don’t have a list of things to remember to find.

Can you Service your Wedding Loan Repayments?

The serviceability of a loan is focused on your ability to meet the payment requirements.  If you are already spending a lot of money on other wedding expenses, will you be able to make repayments at the frequency (weekly, fortnightly, or monthly) that your lender requires?

Choosing to finance your wedding will ultimately depend on your personal circumstances and preferences. 

Wedding loans can be convenient and can allow you to manage the costs of your wedding over time and having the ability to spread payments or make them in full can afford you more the of the things you may want for your wedding without having to sacrifice because of a tight budget. However, borrowing is not a solution for everyone, some couples prefer to have all the payments out of the way and would rather avoid worrying about debt after the wedding. 

It All Comes Down to What is Best for your Specific Circumstances

It is important to think about your situation and make the right decision for yourself and your family.  The consequences of incorrectly judging your ability to repay finance can have lasting effects.  There are also some other alternatives which might be better for your situation such as borrowing from a family member, considering a credit card, or even pushing your wedding date back to allow you to save the money yourself. 

Whichever option you choose, do whatever is right for you.

If you'd like to enquire about wedding loans, or wish to ask about how our loan application process works, please contact Champion Loans. Alternatively, visit our dedicated Wedding Loans page to learn why you should get a loan for your wedding from Champion Loans.