You can't put a price tag on love, but a wedding is another matter. The average cost of tying the knot is $29,000, and figuring out how to finance that expense can suck the joy out of planning for your big day.
One option for footing the bill, taking out a personal loan, can ease the stress on your bank account, but it's not always the right move. Here are some questions to ask yourself that will help you determine if a loan is a good fit for your situation.
How much do you and your partner have saved for the wedding?
You can't know if you need a loan for your wedding without having a solid grasp of your savings and how they match up to your expenses. This may sound obvious, but if you're planning a complicated wedding for months, it's easy to lose track of exactly what you're working with. Sit down with your partner and refresh (or create) your wedding budget so you have all the facts.
If you don't have enough saved to cover the entirety of the wedding, then you may have to find ways to lower the cost of the wedding or take on a loan or credit card to foot the rest of the bill.
Even if your savings come up short of your expenses, you can start squirreling away your cash now to reduce how much money you'll need to borrow to pay for the wedding. A high-yield savings account can be a good place to keep your money since you'll earn more in interest than you would by saving it in a traditional savings account.
The Marcus by Goldman Sachs Online Savings account doesn't charge overdraft fees, monthly fees or excessive transaction fees. If you're planning on taking a honeymoon, you choose the Bask Bank Mileage Savings Account. Account holders can earn American Airlines AAdvantage® miles back instead of earning interest on their balance. With the mileage savings account, you'll earn 2.5 miles for every $1 saved annually. You can then use those miles for flights on American Airlines or any of its 20+ partner airlines, which means you may be able to effectively lower the cost of your postnuptial trip.
Marcus by Goldman Sachs High Yield Online Savings
Annual Percentage Yield (APY)
4.40% APY
Minimum balance
None
Monthly fee
None
Maximum transactions
At this time, there is no limit to the number of withdrawals or transfers you can make from your online savings account
Excessive transactions fee
None
Overdraft fee
None
Offer checking account?
No
Offer ATM card?
No
Terms apply.
Bask Mileage Savings Account
Annual Percentage Yield (APY)
Earn 2.5 American Airlines AAdvantage® miles for every $1 saved annually instead of interest.
Minimum balance
None
Monthly fee
None
Maximum transactions
Up to 6 withdrawals or transfers per statement cycle
Overdraft fees
N/A
Offer checking account?
No
Offer ATM card?
No
Terms apply.
Pros
- Earn American Airlines AAdvantage miles instead of cash
- No minimum balance
- No monthly fees
Cons
- No option to add a checking account
- No ATM access
Do you have other big expenses coming up soon?
One of the most important parts of a loan is the loan term, or how long you have to pay back the amount you borrowed (plus interest). A longer loan term means smaller monthly payments but you'll pay more in interest over the life of the loan. A shorter loan term means less interest paid by the end of it but your monthly installments will be bigger.
Because defaulting on your loan payments will wreck your credit score (and create a whole heap of financial problems for you), make sure you don't have any large expenses planned — such as purchasing a house — in the next few years that could prevent you from comfortably paying off the loan. If you do, rein in your wedding expenses before taking out a loan you may not be able to afford.
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How does your credit score look?
While some personal loan lenders — like Upstart and OneMain Financial — consider applicants with fair or poor credit scores, you'll still want as high a credit score as possible before applying for a personal loan.
Upstart Personal Loans
Annual Percentage Rate (APR)
7.8% - 35.99%
Loan purpose
Debt consolidation, credit card refinancing, wedding, moving or medical
Loan amounts
$1,000 to $50,000
Terms
36 and 60 months
Credit needed
FICO or Vantage score of 600 (but will accept applicants whose credit history is so insufficient they don't have a credit score)
Origination fee
0% to 12% of the target amount
Early payoff penalty
None
Late fee
The greater of 5% of monthly past due amount or $15
Terms apply.
OneMain Financial Personal Loans
Annual Percentage Rate (APR)
18.00% to 35.99%
Loan purpose
Debt consolidation, major expenses, emergency costs
Loan amounts
$1,500 to $20,000
Terms
24, 36, 48, 60 Months
Credit needed
Poor/Fair
Origination fee
Origination fee starting at $25 to $500 or percentage ranging from 1% to 10% (depends on your state)
Early payoff penalty
None
Late fee
Up to $30 per late payment or up to 15% (depends on your state)
Click here to see if you prequalify for a personal loan offer. Terms apply.
Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral) and your state of residence. If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Visit omf.com/loanfees for more information. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB's Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.
Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: $3,100. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600.
Borrowers in these states are subject to these maximum loan sizes: North Carolina: $9,000 for unsecured loans to all customers, $9,000 for secured loans to present customers. Maine: $7,000. Mississippi: $12,000. West Virginia: $14,000. Loans to purchase a motor vehicle or powersports equipment from select Maine, Mississippi, and North Carolina dealerships are not subject to these maximum loan sizes.
Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
Time to Fund Loans: Funding within one hour after closing through SpeedFunds must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after loan closing.
Applying with a higher credit score means you'll qualify for some of the lowest interest rates, making it more affordable to borrow money for your wedding. If you have some time before you need to apply for the loan, it's a good idea to work on raising your credit score.
Compare offers to find the best loan
Bottom line
To avoid taking on more debt than you can pay off, you should exhaust your other options before financing your wedding with a personal loan. This can mean anything from scaling back your ceremony and reception to increasing the amount you save for the big day. But if you have a decent credit score and your finances are in a position to pay off the loan in a timely manner, you can move ahead with getting the money you need to make the wedding of your dreams a reality.
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