Feel the solace in your partner’s company.
Plan your romantic getaway with Honeymoon Loans from LoanTube.
What is a honeymoon loan?
Wedding festivities can be hectic and tiring, but most of us can’t wait to start the new chapter of our married lives with a honeymoon. But since weddings are a costly affair, many couples are forced to compromise on their honeymoon. This is where honeymoon loans come into the picture – these are wedding loans that you can use to finance your honeymoon.
Honeymoon loans are essentially personal loans designed to help you pay for your honeymoon in small and affordable monthly instalments. You can borrow honeymoon loans from £1,000 to £35,000 over 12-84 months. Since you get a lump sum disbursed into your bank account upon approval, it becomes easier to pay for the honeymoon expenses upfront.
How does honeymoon finance work?
Like personal loans, the success or approval of your application for honeymoon finance depends heavily on your credit score. Your credit score enables lenders to assess their risk proposition in lending your money, making it a pivotal factor in your application. Other salient factors are your income, employment status, electoral registration, debt-to-income ratio, credit utilisation, etc.
You ideally choose an offer from a list of real rate proposals from our lending panel based on a harmless soft-credit check. The lender you select then performs a hard credit enquiry to evaluate your affordability. Once approved, the lender would transfer the lump sum directly into your bank account, which you can use to finance your wedding or honeymoon expenses.
While honeymoon loans are an affordable and straightforward way of financing your romantic getaway, it is crucial to understand the repayment implications associated with them. Missing repayments on your honeymoon loan could gravely impact your credit score. Moreover, suppose you default on the loan. In that case, you may land a County Court Judgment (CCJ), which stays on your credit file for six years, hampering your chances of securing credit to fulfil your other life goals.
What expenses can I cover with a honeymoon loan?
Here’s a list of some of the basic honeymoon expenses that you might incur:
The list may vary depending on your travel schedule and budget. It would be best to set aside money for miscellaneous expenses or indulgences in your budget.
When is it a good idea to use wedding loans for honeymoon finance?
Here’s when it may be wiser to use a honeymoon loan for your expenses among other counterparts:
Does the honeymoon fund solve the same purpose as wedding loans?
In a honeymoon fund, a couple makes a wish list of gifts and experiences they want for their wedding instead of using a traditional wedding registry. Guests can then give money, buy experiences or send personalised gifts for the couple by their wish list.
The list can include anything – from flights to accommodation, meals, and activities for their honeymoon. In addition to offering personalised gifts to the couple, the honeymoon registry also eliminates the awkwardness that couples might face when they ask guests for cash instead of gifts. On the other hand, wedding loans are personal loans that can help you finance your wedding expenses – right from catering, attire, and décor to your honeymoon. You can effortlessly pay your wedding deposits with a wedding loan and repay them in manageable monthly instalments over time. The honeymoon fund may cover your honeymoon costs in the form of ‘gifts,’ but a wedding loan can help you protect your overall expenses.
What all options can I use to finance my honeymoon?
Use Your Savings
Interest-Free Credit Cards
Collateral-free personal loans to help you finance pre and post-wedding expenses.
Create a savings pot to set aside some funds for your big day.
High-cost credit cards with a zero-interest promotional period. However, you may need a stellar credit score to qualify for these cards.
Honeymoon fund is a way for you to create a wish list so that your wedding guests can plan their gifts accordingly. These gifts include flight tickets, accommodation or sightseeing plans for your honeymoon.
Customisable loan terms to give you more flexibility and control over repayments.
It may take you a while to reach your savings goal. So you may have to put off the wedding until then.
Limited interest-free period (usually 12-18 months)
Interest implications do not apply to the honeymoon fund as the fund includes gifts from loved ones and relatives.
Small and affordable monthly repayments.
Your savings are a result of years and years of hard work. It may not be wise to tap into your savings to pay a lump sum towards your wedding.
High-interest rates after the expiry of the interest-free period
There is no need to repay gifts or funds from the honeymoon registry.
Repayment failure could lead to credit-score damage.
You might have to re-align your wedding such that it doesn’t exceed the budget you’ve set for the event.
You may accrue a huge interest on the credit card along with credit score damage.
Repayment implications do not apply to honeymoon funds.
How to save money on a honeymoon?
Here’s how you can save money on your honeymoon:
What to consider before borrowing a wedding loan for a honeymoon?
Wedding loans can be a big decision, so inform your partner about this choice. If you’re perplexed about whether to opt for a loan or not, ask yourself the following:
You should evaluate your ability to repay the loan before applying for it. You should borrow only as much as you can comfortably repay within the timeframe agreed upon by the lender and you.
Taking out a loan for a longer term requires more commitment. If you take out a long-term loan, your monthly payments may be lower, but your overall interest rate will probably be higher. Determine what loan term is convenient for your financial situation.
You can lose a few points from your credit score when you miss a payment. Defaults can result from missed payments, resulting in a County Court Judgment (CCJ), negatively impacting credit scores. Therefore, paying your debts on time and maintaining a healthy relationship with credit is essential.
Maintaining repayments will be easier if you have a contingency plan for emergencies. Make an informed decision based before borrowing a wedding loan for your honeymoon.
These days, couples often take out joint loans for their weddings or honeymoons to help spread the burden of a wedding’s financial impact. When you borrow a joint loan, you sign up for shared responsibility towards the loan and its repayment.
Lenders usually consider the credit profiles of both partners before making their decision. Besides, your partner’s credit file may get linked to yours when applying for joint loans in the future. So, how positively or negatively the linked credit profile affects your chances of approval depends on how good or bad your partner’s credit report is.
Settling your joint loan is a collective responsibility. Still, if one partner bails out, the onus of the repayment falls on the other. So, if you have a fallout with your partner, you might still have to keep up with them to ensure that they contribute towards the repayments of the loan.
Taking out a joint loan with your partner is a huge leap and thus, requires deep and sincere thought, not an impulsive decision. Weigh the pros and cons before making the final call.
Here are some tips on how to plan your first couple’s getaway with minimum financial strain:
You can borrow up to £35,000 over 12-84 months with LoanTube.
With LoanTube, you won’t pay any upfront fees. Take advantage of a seamless and hassle-free loan application process.
The rate you are offered will depend on your individual circumstances.
Representative APR Example: On an assumed loan amount of £2,600.00 over 36 months. Rate of interest 41% per annum (fixed). Representative 49.7% APR. Total amount payable £4,557.89 of which £1,957.89 is interest. 35 monthly repayments of £126.61 and a final payment of £126.54
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.