Wedding loans

Compare wedding loans and get your perfect wedding^[1]

These are personal loans, also known as unsecured loans
You’ll need a good credit score to access to the best interest rates
Compare the overall cost of the loans to find the cheapest option for you

It’s one of the most magical days of your entire life, but wedding costs can add up quickly.

In fact, you may have heard the phrase ‘wedding tax’ when planning your big day. This is when a retailer or venue owner hikes up the prices for a wedding, in comparison to a normal party.

And with the average wedding setting you back over £17,000 ^[2], it’s no wonder that people are looking at different ways to fund their happily ever after. Especially if you’re trying to save up for your first home at the same time.

A wedding loan may just be an option to borrow money for exchanging your vows, while keeping the cost down.

Can I get a loan to pay for my wedding?

Yes, it’s possible to take out a personal loan to pay for your wedding.

This is a type of unsecured loan, which allows you to borrow up to £25,000, depending on your financial circumstances.

To be accepted for a personal loan, you’re usually required to have a good credit score. This is because the lender has no security to guarantee that they’ll get their money back, so they need to know that you have a history of borrowing and repaying debt responsibly.

Is a loan the right decision?

This will depend on your finances and whether you’ve explored all the other options available.

Taking out debt to pay for a wedding is an option that you need to thoroughly think through before taking the plunge. It could have very serious implications if you’re unable to keep up with your repayments.

Defaulting on your monthly payments can negatively impact your credit score, affecting your ability to access credit in the future, for instance if you’re applying for a mortgage, and could even lead to legal action being taken against you.

However, if you’re able to get a good interest rate and make the repayments comfortably without putting yourself under any financial stress, it can be a low-cost way of borrowing for the wedding day of your dreams.

Pros and cons

Before applying for a wedding loan, consider the following:

Pros:

Will enable you to have the wedding of your dreams if you feel you wouldn’t be able to save up to pay for it
Allows you to access a large lump sum to be used how you want
If you’re accepted for a loan, the money will be transferred to your bank account within a few days
If repayments are made in time and in full, it can help to boost your credit score, which can come in useful when applying for a mortgage

Cons:

Starting off your married life with a large amount of debt could put you under unnecessary stress
If you’re unable to keep up with your repayments, it will affect your credit score and future ability to borrow
It may not be the cheapest way to borrow if you can get accepted for a 0% credit card or overdraft
If you have a lower credit score, the loans available to you will have a high interest rate

Alternatives for paying for a wedding

Before you contemplate taking out a loan, think about:

Saving up

It will take considerably longer than applying for a loan but saving up means that you’ll start your married life without debt. Try putting together a budget to see what you spend your income on each month, then think about where you can cut back and move that money to a wedding pot

Family loan

Would it be possible to borrow from your family? Just make sure that you draw up a loan agreement. This should detail the loan amount, term and interest rate, as well as when the monthly repayments should be made by. This will help to prevent any future disagreements over the conditions of the loan

0% purchase credit card

If you’re looking to borrow a smaller amount, think about using a purchase credit card with a 0% interest introductory period. This enables you to borrow for free, as long as you pay off the whole debt before your introductory offer ends, or you’ll be moved to the card provider’s pricey standard interest rate

0% overdraft

It may be possible to extend your 0% interest overdraft or open a current account with this facility. This enables you to borrow small amounts without being charged. Just be aware that if you go over your overdraft limit, you’ll likely be charged, and the fees can add up quickly

How do wedding loans work?

Wedding loans are essentially just personal loans which you use to pay for your big day. They’re not a specific type of loan.

Once your application has been accepted, you’ll receive the money directly into your bank account and can use it how you wish.

You’ll be required to make monthly repayments, as set out in the terms and conditions of your loan, until the full debt, including interest accrued, has been repaid.

Who is eligible?

Each lender will have their own eligibility criteria which applicants must fulfil before they’ll be considered for a loan. Typically, you must:

Be over 18 years old
Be a UK resident
Be employed

You’ll also be required to pass an affordability check where the lender will analyse whether your income will enable you to comfortably make your monthly repayments. They’ll also want to know about any other debts that you’re currently paying off, as well as conducting a hard search on your credit report.

How to apply for a wedding loan?

It’s really easy to compare loans with us.

All you need to do is let us know what type of loan you require, as well as the amount you want to borrow and how long you need to pay it back.

Then enter some details about yourself and your income and we’ll use our smart search to show you the loans that you’re more likely to be accepted for.

You can then compare the loans available to choose the right one for you and click ‘Apply’. You’ll then be able to complete your application.

How to get the best wedding loan for you

The best loan for you is the one that will cost you the least overall.

Compare not only the interest rate, but the annual percentage rate (APR) which allows you to see the cost of the loan over a period of a year. It includes the interest rate and any fees or charges.

It’s worth noting that the advertised interest rate isn’t necessarily the one you’ll receive. Lenders are only required to give it to 51% of successful applicants, the rest will usually have a higher rate.

You’ll also want to see if there are any early repayment charges (ERCs), which could prevent you from paying back your loan before the end of the loan term if you came into some money.

Can I get a wedding loan with bad credit?

It’s possible to take out a loan if you have a poor credit score, but your options will be limited, and you’ll likely be offered a high interest rate to offset the risk you pose to the lender.

You may need to seek out a specialist lender but watch out for expensive charges and think about whether taking out a wedding loan is a good idea if you’re already struggling with debt.

Find out more about bad credit loans.

FAQs

Will I be accepted for a wedding loan?

This will depend on whether you fulfil the eligibility criteria of the lender and pass the affordability check. So, make sure you check the details closely before applying.

You can increase your chance of being accepted for a loan by using our smart search. This performs a soft search on your credit report to find the loans you have a higher probability of being accepted for. It leaves no mark on your credit score and can help you avoid rejected applications.

What happens if my wedding gets postponed?

Whether you decide to postpone your wedding or extenuating circumstances cause the delay, you’ll need to notify your venue and suppliers as soon as possible.

You’ll also want to look through the terms and conditions of your contracts with them to see what the procedure is in these circumstances. You may be required to pay a fee for changing your date, or you might lose a deposit if you have to cancel vendors who aren’t available on your new date.

What if my wedding gets cancelled?

There are many reasons why a wedding may be cancelled, for instance extreme bad weather or a change of heart. Again, whether you’ll get your money back or not will depend on the contract you have with your suppliers and venue.

Whether your wedding is postponed or cancelled, you’ll need to repay your wedding loan in full, plus interest.

You may want to think about wedding insurance. It’s really important to carefully read what will be covered under each policy before you take it out though.

What is an unsecured loan?

It’s a type of loan that doesn’t require an asset to be used as security, unlike a secured loan which uses your home or car as collateral. In the event of failing to repay your debt, the asset can be sold to cover the outstanding amount.

As there’s a higher risk of the lender not receiving their money back with an unsecured loan, the interest rates tend to be higher and the amount you can borrow will be lower than with a secured loan.

Can I pay off my loan early?

It’s possible to pay your loan off before the term ends, but there may be an ERC. It’s up to you to figure out whether it’s worth it financially. There also may be a cap on making overpayments, so read the terms and conditions carefully.