A wedding loan simply refers to an installment loan that you obtain from a lender for the purpose of covering some of your wedding or honeymoon costs. You get the funds in a lump sum, and you make monthly payments called installments which are the same amount for the life (term) of the loan.
How can you use wedding loans?
You can use wedding loans to cover a variety of expenses. Some couples use a loan for a wedding to cover costs related to the ceremony and reception such as booking a hall, hiring a caterer, bringing in a band, renting tables and linens, or working with a photographer. Couples also use loans to cover honeymoon expenses or to make deposits while they are booking wedding professionals.
Should you take out a wedding loan?
Before signing on the dotted line and taking out a loan for a wedding, you should spend some time making sure that is the right choice for your financial situation. In particular, you need to make sure that you can afford the repayments, and that you’re willing to go into debt for your special day. Some couples justify taking out a loan simply because they are only going to have one wedding, and they want to make it spectacular.
Others take out wedding loans to help them out temporarily as they plan the wedding. For instance, if you’re saving for the wedding but you need funds now to cover deposits, you may want to look into a wedding loan. Additionally, if you’re thinking about using credit cards, remember that installment loans from Citizens Financial may have lower interest rates, which could save you a lot of money in the long run.
What are the pros and cons of wedding loans?
Some of the biggest advantages of wedding loans include the following:
- Wedding loans get funded quickly
- Loans allow you to choose what you really want for your wedding
- Paying installment loans on time can have a positive impact on your credit rating
- Wedding loans can have lower interest rates than credit cards
- Built-in flexibility allows you to use the funds for any wedding costs
- You can pay off the loan slowly over time
The only downside to wedding loans is that you have to pay for your wedding after the fact, and you need to budget carefully for the monthly payments. However, as long as you know that you can afford the loan, you can just look forward to enjoying the benefits.
To learn more about wedding loans and to start the application process, contact us today. We work closely with our clients to ensure they have the funds they need for weddings and other important events and purchases.