With the rising costs of so many things across the globe, taking out personal loans has become the norm for many people. It’s no surprise that this practice of taking out a line of credit is now hitting the wedding industry. More couples are taking out personal loans, personal lines of credit, or using credit cards to finance their wedding expenses.
For many, this is the only way to afford the wedding of their dreams. But, taking out a wedding loan does have consequences, like having to pay for your wedding well after the day is done and dusted and racking up interest on the credit cards or loans for years to come.
Finding the Lowest Interest Rates for Wedding Loans
With that in mind, if you consider going with a personal loan, you need to ensure you get the lowest interest rate possible. Here are a few tips on how to make that happen.
1. Get Multiple Quotes for Personal Loans
When it comes to any personal loan, you should always get multiple quotes before settling on one lender. The same goes for wedding loans. Getting quotes from different lenders will help you compare interest rates and terms to find the best deal possible.
2. Consider a Fixed-Rate Personal Loan
If you’re worried about interest rates going up after taking out your personal loan, you should consider a fixed-rate loan. With this type of personal loan, the interest rate will stay the same for the life of the loan, no matter what happens in the market. That means your weekly, fortnightly, or monthly payments will stay the same, too.
3. Look for Special Offers and Discounts for Personal Loans
Some lenders offer special deals and discounts on wedding loans, so it pays to shop around. For example, some lenders may offer a lower interest rate if you set up automatic payments from your checking account or agree to have your charges withdrawn directly from your paycheck. Others may offer a discount if you take out a larger loan amount.
Another discount to look for comes with early repayment. Some lenders may charge early repayment fees, while others offer discounts on personal loans. It’s worth asking.
4. Shop Around for the Best Interest Rate
The interest rate will be one of the most important factors when you’re looking for a personal loan. After all, the higher the interest rate, the more you’ll have to pay back in the long run cost of the loan. Soshoppingop around for comparison rate details from different lenders is important s before you commit to one.
5. Negotiate the Interest Rate
Just because a lender offers you a certain interest rate on your personal loan doesn’t mean you have to accept it. It’s always worth it to try to negotiate for a lower rate. Many lenders will work with you, especially if you have a good credit score.
6. Get a Cosigner
If you have a bad credit score or no credit history, getting a cosigner for personal loans can help you get a lower interest rate. A cosigner agrees to sign the loan with you and be responsible for the payments if you can’t make them.
Having a cosigner with a good credit score can help you get a lower rate because the lender knows they have someone to back them up if you can’t make your payments. Remember that failure to make your payments will not only impact your credit score but also the credit score of your cosigner.
3 Wedding Loan Options to Choose From
Here are three popular ways to finance your wedding that you may want to consider if you’re looking for a wedding loan in Australia.
Plenti Wedding Loan
Self-defined as a faster, fairer experience, Plenti offers wedding loans with interest rates starting at just 6.69%. They are a completely paperless service that can have you approved when you apply for a wedding loan in as little as 24 hours.
Pepper Money Personal Loan
With Pepper Money, you can access anywhere from $5,000 to $50,000 for a secured personal loan. You can pay the personal loan back over 18 to 84 months, so they give you a good amount of time for the repayments. There are no fees, and interest rates start at 6.5%.
Using Hitchd instead of a Personal Loan
Hitchd is a wedding registry that you can use for anything you like, including loans for weddings. Of course, instead of working like a personal loan, you can use Hitchd to pay for your actual wedding.
You can get your guests to contribute to your wedding registry before the day of your wedding, so in that case, you can access the funds before starting to pay for the big day.
The benefits of using Hitchd this way include no interest, and you can access the funds as soon as your guests start paying into the registry. You avoid interest payments entirely; more than likely, the guests will be happy to contribute to the wedding, as they will be attending it anyway. It’s not uncommon for guests to contribute to the wedding
What Is a Wedding Registry?
A wedding registry is a list of gifts the happy couple would like to receive on their big day. It’s a way for guests to know what the couple needs and wants and helps them stay within their budget.
The registry can be used for anything, from paying for the actual wedding to buying household items for the new home.
If you’re looking for a way to finance your wedding without a loan, then using a wedding registry is a great option. It’s a completely interest-free way to get the funds you need, and it also means that your guests are contributing to your big day in a meaningful way.
Wedding Loan FAQs
Still, have questions about acquiring a personal loan? Check out our FAQs about how to get a loan for a wedding.
Can I get a wedding loan with bad credit?
Getting a wedding loan with bad credit is possible, but it will likely come with a higher interest rate. You may consider getting a cosigner for your loan if you have bad credit. A cosigner agrees to sign the loan with you and be responsible for the payments if you can’t make them. Having a cosigner with good credit can help you get a lower interest rate because the lender knows they have someone to back them up if you can’t make your payments.
Can I get a wedding loan with no credit?
Getting a wedding loan with no credit is possible, but it will likely come with a higher interest rate. You may consider getting a cosigner for your loan if you have no credit. A cosigner agrees to sign the loan with you and be responsible for the payments if you can’t make them. Having a cosigner with good credit can help you get a lower interest rate because the lender knows they have someone to back them up if you can’t make your payments.