You deserve to have a wedding as memorable as the wonderful person you’re marrying. But the special day may come at big price.
Ideally, you would use life savings to pay for your wedding. Unfortunately, that isn’t always an option for many. A guarantor wedding loan is one option to spread the cost over months or years.
A wedding loan could be used to cover the whole cost or part of the total expense of the ceremony and reception.
The cost of a wedding today, compared to years or decades ago, is enormous. Where it used to be traditional that the bride’s family paid for the ceremony, it is now a group effort.
A loan for a wedding can cover more than £10,000, depending on the lender. So, you could pay for an entire ceremony or a significant part of it; even if you have a poor credit history, you could still secure a loan.
There are four main loan options are available to help fund your wedding.
Personal loans are the most common, high street option. However, if you have poor credit, they often won’t be approved. Your credit rating could also drop if you aren’t eligible for the loan as a hard search may be run during the application.
Payday loans provide quick funding for a short-term need, making them popular options in the market. However, they are often accompanied by high APR percentages. This could mean potentially large repayment costs.
Secured loans are often readily approved as an asset, such as a property, is used for collateral against the loan. However, failure to make your payments on time could result in losing that asset. It is not an option to be taken lightly.
Guarantor loans are a popular choice for those with a poor credit history. It requires a guarantor or partner to step in and make the loan payments if you don’t. It is a borrowing system based on the trust of family or friends.
A guarantor wedding loan could provide you with a range of payment packages to be repaid over time.
A personal loan will likely not secure much-needed finance if you have a poor credit history. However, a guarantor loan does not stop you from being accepted for a loan due to your credit.
Wedding costs cover a venue or two, photographers, the dress and outfits. Therefore, this is a flexible finance option with quick approval.
This type of loan is beneficial if you’re a younger couple with little credit history or want to spread the cost around.
There are specific ways that a wedding loan could help you record an improved credit score.
By budgeting your income and outgoings, you should be able to make your loan repayments on time and in full. This responsible financial behaviour should lead to your credit rating improving.
If you are able to repay the credit earlier, there will be less interest on the loan. By doing so, this could put you in a healthy financial position. At the same time, it will pay off your debt quicker, enhancing your score.
If you’re thinking of being a guarantor, there are a number of things to consider.
Weddings and their costs can cover all aspects, from dresses to music hire. Ask yourself if the borrower will likely make the repayments. Otherwise, the duty to pay will be on you.
It is also vital that you are in a position to cover any repayments on the loan if the borrower is unable to. If so, consider whether it may harm your relationship.