Wedding finances should be the last thing on your mind when planning your big day. Our Wedding Loans Guide can help ease any worries you may have about paying for your wedding. ⭐Wedding Season UK ⭐Wedding Loans

A wedding should be the happiest day of your life, but they can often be very expensive. You want your wedding day to be as special as it can be. And if you feel you are stretching to make ends meet, you may find yourself considering a wedding loan.

Many happy couples will be fortunate enough to have savings or family who can cover a lot of wedding expenses. Some, however, will find themselves asking the difficult question – do we cut back on the biggest day of our lives, or do we take out a loan to help with the costs?

In this guide, we will discuss all of the options available to happy couples who are looking at wedding finance alternatives. We will map out your possibilities of funding a perfect wedding and delve into which is the better route – a wedding loan or a credit card.

What is a Wedding Loan and How Can it Help?

A wedding loan is simply an unsecured personal loan. This sort of loan is available to a lot of potential borrowers, and you do not need to be a homeowner to apply. An unsecured personal loan can be used for many things, including paying for most, if not all, of a wedding. It can be used to pay for:

  • Wedding venue hire
  • Wedding catering
  • Bridal outfit
  • Wedding rings
  • Honeymoon
  • Wedding entertainment
  • Wedding flowers

Unsecured loans can be used to borrow anything from £1,000 to £35,000. They are often more flexible than many other lending options, with borrowers choosing how to pay off the loan, making fixed repayments for in between one and five years.

The interest rate for this sort of loan is dependent on a few things. These factors include your credit score, the amount you are borrowing, the time period you are borrowing for, and your current income. For example, the average APR for a personal loan of £5,000 is 8.04% and 3.79% for a loan of £10,000.

The alternative to this sort of loan for many people would be getting a credit card. Those who are potentially looking to borrow a smaller amount can benefit from interest-free credit card deals – for amounts under £7,500 for example.

Depending on how much you need to borrow, and how quickly you can repay the debt, you may be able to pay back the debt of your wedding completely free of charge.

However, caution is key here as borrowers need to ensure they pay off the balance before the interest-free deal ends, otherwise, they may end up paying much more interest.

The Pros and Cons of a Wedding Loan

Pros

  • This sort of loan is widely available to many borrowers.
  • There is no need for a guarantor if you have a good credit score.
  • They are flexible – You can choose how much you want to borrow and how long you have to repay them.
  • You get full control of your wedding – without the need for help from your parents who may have different opinions on your big day.
  • There are fixed repayment terms – You will know exactly how much you have to pay back over a fixed period of time.

Cons

  • In order to get a better interest rate, you need to potentially borrow a specific amount. For example, if you are looking to borrow less than £7,500 or more than £15,000 the rates of interest will tend to increase.
  • Those with poor credit history will end up paying a higher interest rate
  • You enter your marriage with a wedding debt, adding to any other potential monthly costs.
  • If you miss repayments your credit score could be affected.
  • Sensible cost-cutting and budgeting may be abandoned if you borrow a significant amount.

The Pros and Cons of Using a Credit Card for a Wedding

Pros

  • Low-interest rates during the initial offer period – Some lenders can offer 0% APR on purchases for a year or sometimes longer. If you think you can pay off your debt before then, this may be the perfect solution.
  • You can use an existing credit card – Avoiding having to take out a separate loan. This can help if you already pay a monthly credit card bill as you won’t have to worry about taking on new monthly bills.
  • Purchase protection – You are protected under the Consumer Credit Act if your purchase is between £100 – £30,000 and something goes wrong with the purchase.

Cons

  • There is potential for very high-interest rates, after any interest-free period. If you don’t pay off your debt before this initial period, you will most likely be paying much more interest than if you had opted for a personal wedding loan.
  • Potential for other credit card costs – These can include going over your credit limit, late payment fees, cash withdrawal fees, fees for balance transfer and fees for using your card abroad.
  • If you miss repayments your credit score could be affected.
  • You enter your marriage with a wedding debt, adding to any other potential monthly costs.

Is it Better to Pay for your Wedding with a Personal Wedding Loan or a Credit Card?

Whether you are more suited to a wedding loan or a credit card will be determined by your own circumstances. Having said this, there are benefits to taking out a wedding loan over a credit card.

If you have a good credit score you can benefit from a large range of different personal loans, with potentially lower interest rates than those offered via credit cards. Personal loans are also widely available from traditional banks and credit unions.

Generally, credit cards are better than loans when spending smaller amounts on a regular basis. This is due to the ability to pay off smaller amounts each month, without having to worry about paying interest on large sums of money.

With UK weddings now costing upwards of £30,000, a personal loan may be better suited due to the larger amount being borrowed, especially if you believe you can make the monthly repayments. There will be a lower interest rate, and it will be easier to keep track of the money you have spent/paid back as, unlike credit cards, you cannot re-borrow the money you have repaid.

Personal loans are also very useful when you have existing high-interest debt and you need to consolidate, but cannot qualify for a 0% APR credit card.

The UK Wedding Statistics

Main Wedding Finance Statistics

Saved up Money for Their Wedding  62%
Took Financial Help from Their Relatives 44%
Used Their Disposable Income  38%
Used Their Credit Card 14%
Opted for a Bank Loan 4%
Source: LoanTube

Other Wedding Statistics

How Much Does a Wedding Cost in the UK?

Average Wedding Cost £31,974

According to Hitched, the average total cost of a wedding in the UK in 2019 was an eye-watering £31,974. This is £5k up on the average wedding cost in 2017. Unsurprisingly, more than half of the couples that got married last year needed financial help from their families or a loan to help.

What are the Main Costs of a UK Wedding?

According to Hitched, the top ten wedding costs on average for 2019 were:

Product Cost
Venue Hire £5,406
Honeymoon £4,645
Food £3,887
Engagement Ring £2,419
Drink £1,587
Wedding Dress £1,313
Photography £1,155
Mini-moon £1,135
Entertainment/Music £1,005
Video £968

How Many People Are Expected to Get Married This Year?

The latest figures show marriages in 2016 sitting at 249,793. Unsurprisingly, the most popular time of year was summer, with the most popular day being 30th July, with 4,742 on that day alone.

What are the Other Financing Methods Chosen by People in the Last Year?

With so many weddings each year, it is not surprising that many people look to different methods of funding. Most couples do not have a spare £30,000 to fund their wedding. The main ways of paying for a wedding are:

  • Savings
  • Contributions from friends and family
  • Personal wedding loan
  • Credit card

How Can I Apply for a Wedding Loan?

Applying for a wedding loan is like applying for any other type of loan. You will need to decide how much you want to borrow, the length of the loan term and how much you think you can afford to pay back each month.

When applying, you will need to fill in your personal, financial and employment details.  Before you begin it is also worth checking your credit score and credit history. Whether you qualify for certain personal loans will depend on your creditworthiness.

Other key bits of information you may need include your monthly housing payment, whether you own your home, the name of your employer, and how long you have worked there.

LoanTube can begin this application process for you by using our quick and easy online quote system.

Top Tips for a Wedding Loan

There are a few factors to consider before applying for a wedding loan. Rushing into the process can leave you with a loan that isn’t suited you to. Our tips for getting the perfect wedding loan are:

  • Shop Around

It always pays to shop around and find the best Annual Percentage Rate. Banks may state they offer preferential rates to its current account customers, but that rate might still be higher than others on the market. Luckily, LoanTube works with many lenders to pair you with the perfect loan for your needs.

  • Check the Small Print

There is often lots of small print within personal loan terms and conditions. Do they have a fee for early repayment? Can you only get the best loan rate if you open a specific type of account? Is the interest rate fixed only for a certain amount of time? Ensure you understand everything about the loan before signing on the dotted line.

  • Don’t Apply for Too Many Loans

Very often, applying for these sorts of loans often leaves a financial “footprint” on your credit record. Lenders will check this footprint before approving you for a loan. Having lots of loan applications on your record can make you appear desperate or in financial difficulties. LoanTube’s application process uses a “Soft Check” which does not appear on your credit history.

Loans For Weddings – How can LoanTube help?

We compare personal wedding loans with real interest rates across a range of our lending partners. This means we can match you with the perfect loan. And remember, with LoanTube, the rate you see is the rate you get.

All of the lenders on our panel are Financial Conduct Authority approved (as is LoanTube). You don’t pay a penny for our service. Our loans cost exactly the same as if you would have approached the lenders directly yourself. In addition to this, there is no obligation on you to accept the loan or loans we offer you.

To get a free, quick quote today, enter your how much you want to borrow for your dream wedding day on our application form here.