Imagine a picture-perfect wedding,
Make it happen with destination wedding loans.
What is a destination wedding loan?
Destination weddings are a new trend wherein many couples are seeking a retreat from the usual and mundane. Many resorts offer additional-stay luxury honeymoon packages to couples who plan their ceremony with such resorts and hotels. Plus, since the guest list is trimmed down to include only your loved ones, a destination wedding may even turn out to be cheaper!
But, most venues require people to make wedding reservations in advance, and that means you might have to have a lump sum handy to make the bookings. Whether it’s for reserving your wedding venue, booking flights and accommodations, or paying for catering, a destination wedding loan from LoanTube can be your ideal financial aid.
Destination wedding loans are essentially unsecured personal loans that help you finance your wedding expenses when you’re planning your ceremony in a different city or country. These loans enable you to split the cost of your wedding expense into affordable monthly instalments, allowing you to pay for reservations upfront. You can borrow wedding loans from £1,000 to £35,000 over 12-84 months.
How do wedding loans for destination weddings work?
Wedding loans for destinations weddings are pretty straightforward. Since these loans are unsecured, you won’t have to pledge your assets to secure one. However, the success of your application heavily depends on your credit score and income stability.
Credit scores give lenders an insight into your credit history and repayment ability. A higher credit score implies a cleaner credit history and better repayment ability. Thus, the higher your credit score, the lower will be the lender’s risk proposition, and the lower will be the interest on your loan.
After a hard credit check, you must complete some contractual formalities. You need to read your agreement thoroughly to check for any additional fees the lender may have imposed. Once approved, the lender transfers the lump sum directly into your bank account, which you can use to fund your wedding expenses.
It is crucial to understand the default implications associated with unsecured wedding loans. Missing repayments on your loan could gravely impact your credit score. Moreover, if you default, you may land a County Court Judgment (CCJ), which can stay on your credit file for six years. CCJs can make it challenging for you to secure credit.
What kind of expenses might I incur in a destination wedding?
When planning a destination wedding, you might incur the following expenses:
The list may vary depending on your guest list and wedding budget. It would be best to make space for miscellaneous expenses or indulgences in your budget.
When should I use a wedding loan to finance your destination wedding with a wedding loan?
Here’s when it makes sense to use a wedding loan to finance your destination wedding:
Are there other ways to finance my destination wedding?
Loans for Destination Wedding
Use Your Savings
Interest-Free Credit Cards
Collateral-free personal loans to help you finance destination wedding expenses effortlessly. Pay for all your expenses up front with a wedding loan.
You and your partner can collectively set aside some savings into a savings pot intended to finance your destination wedding expenses.
High-cost credit cards with a zero-interest promotional period. However, you may need a stellar credit score to qualify for these cards.
Personalised loan terms offer greater flexibility and more breathing room with affordable repayments. You can avail of a low-interest loan with a good credit score.
Reaching your targeted savings goal can take a while. So you may have to set your wedding date accordingly.
Limited interest-free period (usually 6-18 months).
Small and affordable monthly repayments and low-interest loans.
Using your hard-earned money to pay upfront wedding expenses may not be wise. Exhausting your savings could shake up your finances right before your wedding.
High-interest rates after the expiry of the interest-free period
Repayment failure could severely damage your credit score.
You will have to align your wedding with the budget that you’ve set.
If you fail to repay the balance on time, you may accrue a huge interest on the credit card along with credit score damage.
Are destination weddings more expensive?
Destination weddings can seem intimidating at first – you need to think about accommodation and food for an entire guest list, along with flight tickets. But if you follow a strict budget and a selective guest list, a destination wedding can save you a few extra pounds. Here’s what you can do:
What to consider before borrowing a destination wedding loan?
A destination wedding is a big decision, so it is imperative to have a thorough discussion with your partner before opting for a wedding loan. Here are some questions to help you get started:
Crunch some numbers to evaluate how much you can afford to spend on your wedding. It’ll help you determine a loan amount suitable for your wedding expenses. However, you should only borrow an amount that you will eventually repay.
An extended loan term requires a lot of commitment and discipline. If you take out a long-term loan, your monthly payments may be lower, but you may accrue a greater interest on the loan. Determine a loan term that aligns with your present and foreseeable financial situation.
A missed payment could cost you up to 150 points from your credit score. If you miss payments consistently and default on the loan, not only would you lose a high 350 points off your credit, but the lender may hand you a County Court Judgment (CCJ). CCJs affect your credit file for up to 6 years, hampering your chances of securing credit in the future.
A contingency plan is pivotal in ensuring timely payments, regardless of your financial circumstances. Make an informed decision before borrowing a wedding loan for your destination wedding.
The average cost of domestic nuptials in the UK usually starts from £27,161. Meanwhile, you can wrap up a budget-friendly destination wedding for about £7,500 – £15,000, depending on how flexible your budget is. Fewer guests, natural decorations, group discounts, and an inclusive mini-moon can quickly help you save a few thousand pounds.
Weigh the pros and cons of wedding loans before opting for one.
Following are some tips to help you save money on your destination wedding:
These days, joint wedding loans are becoming increasingly common – couples try to split the burden of wedding expenses by borrowing jointly. When you borrow a joint loan, you partake in the loan’s obligations along with your partner.
Before making their decision, lenders typically examine the credit profiles of both partners. Also, your credit file might be linked to your partner’s when you apply for joint loans. So, both your credit files will dictate the success of your application.
The responsibility of repaying your joint loan falls on both partners. If one bails out, the onus of repayments might fall on the other. If you and your partner have a fallout, you may need to stay in touch to ensure that they hold up to their end of the contribution.
A joint loan is a big decision and thus requires deep, thoughtful consideration, not impulsive action. Before you make a decision, look at the pros and cons.
You can borrow up to £35,000 over 12-84 months with LoanTube.
Our mission is to help you find the right loan – we do not charge an upfront fee from our users.
Warning: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK
Credit subject to status & affordability assessment by Lenders.
LoanTube is a credit broker and not a lender.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.