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Wedding loans: How to finance wedding costs

Hanneh Bareham, Bankrate.com on

Published in Lifestyles

Whether you’d like a large, extravagant wedding or a small, casual affair, you may find yourself short on cash as you get deeper into planning out the details. This is where a wedding loan could be helpful in making your big day a dream come true.

Wedding loans make sense for some scenarios, but not all. Weigh the alternatives before jumping to a loan to ensure you’re starting your life with your new spouse on the right financial foot.

What a wedding loan is

A wedding loan is often a personal loan used to cover various wedding expenses, including the wedding venue, catering and a videographer.

A wedding loan is marketed toward engaged couples who are planning weddings. Some couples may use a wedding loan to finance certain parts of their big day, such as upgrading catering options, while others will use financing to pay for the whole event.

These loans are easy and quick to apply for — many lenders will even approve you online in a few minutes. The interest rate you’ll receive varies and is typically based on your income, credit score and current debts.

 

While some loans are marketed specifically as wedding loans, you’re generally free to use any type of personal loan to cover wedding costs, including home equity loans.

The cost of a wedding loan

How much a wedding loan costs depends on various factors, such as your loan term, interest rate and how much you want to borrow. You can use a personal loan calculator to easily determine how much your exact loan will cost.

The following table shows the costs of a three- and five-year loan with a 10 percent annual percentage rate.

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