How To Finance a Wedding: Best Wedding Loans of November 2024

• We reviewed the best personal loans for wedding expenses and found the best overall to be SoFi, due to its high loan amounts and long repayment terms.
• Other strong choices include Upgrade and Discover, but the best personal loan to cover your wedding expenses may vary based on your situation. 

If you’re recently engaged, congratulations! Now it’s time to start planning for the big day. With the average cost of a wedding running around $35,000, according to the latest Real Weddings Study from The Knot, you may be wondering how to finance some or all of the costs. That’s where wedding loans can come in. Read on to find out which wedding loans topped our list and what you should know before getting one.

Compare wedding loan rates of November 2024

Best wedding loans

Not sure where to start your search for a wedding loan? We did the hard work for you. After researching a variety of personal loan lenders based on factors like their loan limits, funding times, loan terms, fees, and interest rates, here are those that stood above the rest. While all of these lenders offer wedding loans, you may need to apply on their website to be eligible.

Methodology

Credible evaluated the best personal loan lenders for wedding loans based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Credible’s team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

Learn more about how Credible rates lenders by exploring our Personal Loans Lender Rating Methodology.

How to compare wedding loans

One of the first steps to compare wedding loans is to prequalify. Most lenders let you prequalify for a wedding loan on their website, or you can prequalify with several lenders via the “Check Rates” buttons below.

Prequalification can give you an idea of the rates and loan terms you might qualify for, but is not an offer of credit. You’ll need to formally apply for a loan with a lender to see its final rates and terms. Note that while prequalification will not hurt your credit, applying for a loan could temporarily lower your credit score by, usually, no more than five points.

• Loan amount: Lenders vary in the maximum loan amounts they make available, and one lender may be more likely to approve you for a higher amount than another. Compare the amounts each lender estimates you can borrow to see which may best suit your needs.
• Annual percentage rate (APR): The APR is a percentage that shows the yearly cost of the loan in relation to the total amount borrowed, including the interest rate and any upfront fees. A lower APR means less cost over the life of the loan.
• Fees: Lenders may charge a variety of fees, such as origination fees (which are included in the APR and are often deducted from the loan funds before you receive them) and late fees. Check fee types, amounts, and terms.
• Repayment terms: The term is the number of months or years you’ll have to repay the loan. Shorter terms generally result in higher monthly payments but lower overall costs. Look for a term that best suits your budgetary needs and preferences.
• Monthly payment amount: The monthly payment amount is the amount you’ll pay per month throughout your loan term. On personal loans, this is typically fixed. Look for an amount that fits into your budget.
• Funding time: This is the amount of time it takes for the lender to send the loan funds to you after approval. If you’re looking to get the money fast, look for lenders that can disburse funds quickly. The turnaround time between loan approval and loan funding could be as soon as the same business day, though it's often within one to two business days.
• Customer reviews: Read reviews to see what past borrowers say about each lender. Look for high customer satisfaction levels. Trustpilot and the Better Business Bureau are good places to start.

You might not find a single lender that’s best in every area, but look for one that offers a competitive deal and ticks the boxes that are most important to you.

Check Out: Best Personal Loan Rates

How does a wedding loan work?

Wedding loans are often a type of personal loan that many lenders offer. These are installment loans that provide you with a lump sum upfront that you can use to pay for your wedding expenses, and any other extra costs you need to cover, as long as the use falls within the lender’s terms. You then repay the amount, plus interest and possibly fees, through monthly repayments over a set term. Wedding loans are often unsecured, which means eligibility hinges primarily on your credit profile and income.

Learn More: How Do Personal Loans Work

Wedding loan costs

The cost of a wedding loan is going to depend on the amount you borrow, the interest rate you get, the fees a lender charges, and the loan term you choose. Here’s a breakdown of how each factor influences your costs:

• Loan amount: Interest and fees are charged based on a percentage of the total loan amount. The larger your loan amount, the more it’ll cost.
• Interest rate: Interest rates show you the percentage of the loan amount you’ll be charged per year in interest. The lower your rate, the lower your costs.
• Fees: Lenders may charge fees that add to your total costs, such as origination fees. The lower the fees, the better.
• Loan term: Interest is charged as long as you have an outstanding balance, so the longer your loan term, the more it’s going to cost you.

Learn More: Best Personal Loans With No Origination Fee

Wedding loan cost example

Now that you know the factors that determine the cost of wedding loans, here’s an example of how they work in practice.

Suppose you take out a $30,000, five-year wedding loan that has a 19.96% APR. Loan costs break down as follows: a 19% interest rate and 2% origination fee. Lenders often deduct the origination fee from the loan balance upfront, which means you’ll receive $29,400 instead of the full $30,000. You’d then repay the full $30,000, plus 19% interest, over five years. That would result in 60 monthly payments of about $778, a total interest cost of $16,693, and a total overall cost of borrowing of $17,293.

Wedding loan cost summary:

• Loan amount: $30,000
• APR: 19.96%
• Interest rate: 19%
• Origination fee: 2%
• Origination fee cost: $600
• Loan term: 5 years
• Monthly payment amount: $778
• Total interest cost: $16,693
• Total loan cost: $17,293

Want to check the monthly payment amount and total interest cost of different loans? You can easily do so with a personal loan calculator. Remember to factor in upfront fees not represented in the interest rate as you make your calculations.

Learn More: APR vs. Interest Rate on Personal Loans

Qualifying for a wedding loan and how to apply

Most wedding loans are unsecured, so eligibility depends primarily on your credit and income. To figure out your options, follow these steps:

1. Review your budget: Review your income, expenses, and discretionary income to find out the maximum monthly loan payment you can comfortably afford.
2. Check your credit: Check your credit reports and scores. You can request copies at AnnualCreditReport.com. Many lenders have minimum credit score requirements, so it can be helpful to know where your scores sit. Ensure that everything on your reports is accurate and look for opportunities to make quick improvements.
3. Collect and compare quotes: Shop around and check if you prequalify with different lenders. You can do so online with many lenders without damaging your credit score. This can give you a better idea of the rates, terms, and loan amounts you may be eligible for, but is not an offer of credit. When you formally apply for a loan, the lender will conduct a hard credit pull, which will affect your score. Compare the quotes side by side to find the best deal.
4. Apply: Complete the full application with the lender that’s the best fit for your situation. You’ll typically need to allow a hard credit check and provide documentation to prove your identity, income, address, and employment.
5. Review and accept the terms: If you’re approved, review the loan terms. Then, if all looks good, you can sign the contract and the lender will send you the loan funds.

To improve your odds of both qualifying and finding the best deal, it’s important to shop around. A wide variety of lenders offer wedding loans, and they vary in their eligibility requirements, loan amounts, rates, terms, fees, and more. If you want to speed up the process, a loan marketplace can help you check rates from multiple lenders in minutes.

Learn More: How To Get a Personal Loan

Wedding loan alternatives

If a wedding loan isn’t right for you or you’re curious about other options, consider these alternatives.

Wait and save

Paying for a wedding with savings will eliminate the borrowing costs you’ll incur from a wedding loan. On the downside, it often means putting off your wedding until a later date. If you want to go this route, start by setting the target amount you want to save. Next, review your budget to figure out how much you can put toward the goal each month. From there, estimate how long it will take you to reach your goal. If you want to speed up the timeline, brainstorm ways to increase your income and/or decrease your expenses.

If high-interest debt is making it difficult to save, consider using a debt consolidation loan to consolidate credit card and other debt at a lower interest rate.

Ask for help from family and friends

Another option is to ask for financial support from family or friends. Find out if they may be willing to help with some of the costs. For example, perhaps someone could cover the cost of the wedding attire or the bar at the reception. To prepare for the conversation, make a list of all of your wedding expenses and include estimated costs.

Credit cards

You might consider using a credit card, or multiple, to cover your wedding expenses. Credit cards have higher APRs on average than personal loans do, but this varies, and some card providers offer 0% APR introductory periods up to 21 months or more. If you have an outstanding balance when the end of the promotional period is approaching, you may be able to use a personal loan to refinance credit card debt.

The challenge here is getting approved for a credit line large enough to cover your wedding expenses. You may need to have very good credit to qualify.

Home equity loans and lines of credit

If you’re a homeowner and own more than 20% of your home, you might consider borrowing against your home equity with a loan or home equity line of credit (HELOC). Both are backed by your home, which makes them easier to qualify for than unsecured loans, and could net you a lower rate. On the downside, if you default, you could lose your home to foreclosure, so it’s important to ensure you can comfortably afford the payments.

Related: Personal Loan vs. Home Equity Loan

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