Perhaps your wedding was postponed in 2020 due to the pandemic and you’re ready to start planning again. The cost of a wedding in 2021 could run you about $22,500. That’s only for the cost of the reception and does not include other costs involved with getting married, such as flying relatives out, the honeymoon (around $5,000), the cost of the rings, and a photographer.
What’s even more eye-opening is that nearly 50 percent of all couples will end up spending more on their celebration than they had originally budgeted for.
Here are some average costs for you to consider:
- Reception venue: $10,500
- Photographer: $2,400
- Wedding/event planner: $1,500
- Reception band: $3,700
- Reception DJ: $1,200
- Florist: $2,000
- Videographer: $1,800
- Wedding dress: $1,600
- Wedding cake: $500
- Catering: (price per person): $70
- Transportation: $800
- Party favors: $400
- Rehearsal dinner: $1,900
- Engagement ring: $5,900
- Invitations: $590
- Hair stylist: $110
- Makeup artist: $100
If you plan on getting married soon, hopefully, you have a budget set in place or maybe you don’t have quite enough cash saved and are considering taking out a wedding loan.
How a personal loan can help
Wedding costs can add up, and if you don’t have the cash on hand to pay for the wedding, you may consider a personal loan. Personal loans can be used for just about anything, from paying off a wedding to medical bills to consolidating high-interest debt from a credit card.
A personal loan typically comes with lower interest rates than a high-interest credit card. The rate you secure usually depends on your financial history and credit score.
Using a personal loan may be a more manageable way to pay for these expenses and a personal loan through Upstart can be an option. See what rates you qualify for—it takes just a few minutes.
What is a wedding loan?
Just to be clear, there are no loans that are specifically designed for a wedding. If you’ve heard the term wedding loan, it’s typically an unsecured personal loan that is used to pay for the costs associated with a wedding. For the purposes of this article, we’ll refer to it as a wedding loan.
Wedding loan: The pros and cons
Pros of a wedding loan:
- You can get your funds quickly: Personal loans can typically be funded in less than a week, but sometimes as quickly as the same day you apply. 99% of personal loan funds through Upstart are sent just 1 business day after signing.¹
- Predictability: Wedding loans typically come with fixed interest rates, so you make the same payment each month. This helps you better plan for your budget since you know exactly how much you need to pay each month.
- Unsecured: Most personal loans are unsecured, meaning there is no need to put up collateral (such as your house or car) to obtain the loan.
Cons of a wedding loan to consider:
- You likely won’t get a good rate if your credit needs improvement: Your credit is a large factor in determining whether you get approved for a wedding loan and your rate. The great thing about Upstart is that they use more than your credit score to determine your rate. They also take your employment and education² into consideration.
- You’ll still have debt: Some experts argue you’re simply moving one kind of debt to another. This is why it’s essential to have a plan in place to pay off your loan. Being stuck paying off your wedding loan for years is not ideal. Think about how long you want to have this debt and what you’ll need to do to pay it off quickly.
How to get a wedding loan
Shop around to see what rates you qualify for. It is ideal to have a solid credit score by the time you decide to apply.
Your application can be done online. You’ll be asked to fill out your personal and financial information. If approved, you’ll see what rate you qualify for and you can get the funds directly in your bank account. Depending on the lender, you can get your funds in just a few days or less.
Make sure to have a plan
Taking out a loan to pay for the cost of your wedding should not be taken lightly. If you can, save as much cash to pay off the wedding in tandem with taking out a loan.
Have a timeline in mind for how long it will take you to pay off the loan and how much interest you’ll pay.
The nice part about personal loans is that with most lenders, there is no penalty for paying down the loan faster before your term is over.
¹ If you accept your loan by 5pm EST (not including weekends or holidays), loan funds will be sent to your designated bank account on the next business day, provided that such funds are not being used to directly pay off credit cards. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.
² Although educational information is collected as part of Upstart’s rate check process, neither Upstart nor its bank partners have a minimum educational attainment requirement in order to be eligible for a loan