What Are Wedding Loans?
Wedding loans, or wedding financing, is a type of personal loan that is taken out to finance your dream wedding, affordably and comfortably. It is a form of credit that is designed to cover various different wedding costs and purchases.
Should You Get A Wedding Loan?
Saving up for a wedding can be stressful and so you may have come to the conclusion of ‘I need a loan for my wedding’. But first things first, you should discuss this option with your partner as you will both be responsible for the financial decisions in the marriage.
With the average UK wedding spend being between £25,000-30,000, it may be quite overwhelming paying for the wedding in one large lump sum. Therefore, taking out a loan to repay the balance comfortably and in instalments, may feel like the best option.
If you are looking to alleviate some of that wedding financial stress and are looking for a more practical alternative, you might want to consider wedding financing.
What Are The Pros And Cons Of Wedding Loans?
Before taking out wedding financing, you should prioritise knowing all of the facts. It is important to know the ins and outs so that you are happy with your decision, and so that there are no nasty surprises later on! Lucky for you, we have compiled the pros and cons of wedding loans in the UK, so that you can make a well-informed decision; one that benefits you and your partners special day!
What Are The Benefits Of Wedding Loans UK?
• Alleviates The Stress Of Saving
Some of us spend our whole lives saving up for this special day, but still struggle to come close to our goal. Opting for wedding financing gives you the opportunity to really enjoy the whole wedding experience and gives you one less thing to worry about amongst the whole wedding madness.
• Flexible Repayment Periods
Flexy Finance offers wedding financing, and you are able to choose a repayment term that suits you.
They are usually between 1-24 months, which means the monthly payments are flexible, affordable, and stress-free. Wedding loans couldn’t be any easier!
• Budgeting Becomes Easier
Budgeting is going to be a huge part of the whole wedding process, and you will need to be financially on the ball to make sure everything goes to plan.
Wedding loans, and personal loans in general, come with a fixed repayment schedule, which gives you the luxury of being able to budget more effectively.
What Are The Drawbacks Of Wedding Loans?
• Beginning Marriage With Debt
Couples who are soon to be married, don’t usually intend to enter this new chapter in their life with debt. Most couples want to start things with a clear state and may be concerned about the maintenance of such debt.
This is why it is important to discuss this with your partner beforehand and come up with a fixed plan about how you are going to repay it, so you can both approach this new adventure feeling content and financially secure.
• They Can Work Out Expensive
We can all agree that personal loans might be the quickest and easiest way to receive money. However, depending on the lender, some may have higher interest rates, and may even perhaps charge you with early repayment fees if you choose to repay your loan earlier than the contracted end date.
What should I do if I’m struggling with debt?
It is important to remember to not to borrow more than you can afford, so always borrow responsibly. These loans should not be used for long-standing financial debt or other issues. Remember, if you are struggling with debt please click on the links below:
What Are The Alternatives To Wedding Loans?
Are you still undecided and need to know a little more? Weddings are the most important day in a lot of people’s lives so it is essential that you explore all of your options to ensure that you receive the wedding that you’ve always envisioned. Here are the alternatives to wedding financing!
Use Your Savings
If there is any day that you choose to whip out your savings, then your wedding day is the day, right? Choosing to use your savings means that you don’t have to worry about paying interest.
No Savings? Start Saving!
If you haven’t started saving, then there is no time like the present! Cut back on unnecessary expenditure and consider the following tips to save effectively:
A lot has changed in recent years and various technological advancements have opened up several other possibilities, a lot of which can save us time and money. One of the most notable changes is the decreased need to use paper and the shift towards going paperless.
In reference to a study by Bridges Magazine, couples spend an average of £300 on wedding stationery. Why not spend nothing at all, and save yourself some time by sending off e-invites?
With the average cost of a wedding in the UK being around a daunting £25,000, a lot of couples have opted for DIY weddings. This is particularly a great idea if you are having a smaller and more intimate celebration.
You can DIY anything from table centrepieces and cocktails, to the wedding cake and even the wedding dress!
• Winter Wedding
When people imagine their big day, they tend to envision a beautiful and sunny occasion during the height of spring or summer. But, there is also a charm in having a winter wedding.
Asides from the obvious fact that it will be heaps cheaper, there is also more availability, your guests are more likely to make the occasion, and you may even get lucky and receive snowfall on your big day!
• Take Advantage Of Friend’s And Family’s Talents And Skills
So, we’ve already established that your wedding day is going to work out expensive. But chances are, there are plenty of people in your life with various talents and skills that can help you cut down on your wedding expenditure. It could be that you know someone who is very artistic and can do the brides makeup, or maybe your best friend bakes for a living, and can volunteer to create your wedding cake?
Not only will this help save you money, but it is also a nice way of including your loved ones on your special day, in a bigger and more personal way.
Ask Family And Friends
If there is any such thing as a good time for you to ask your family and friends for some money, then it is now. Most of your family and friends would be willing to help towards such an occasion, and don’t forget – every little helps!
If you don’t feel comfortable asking for money, then you can always suggest that they lend a hand in other ways so that you don’t have to spend money on hiring people.
For example, why not consider DIY and take on some of your family and friends to help out? This way, you don’t have to spend loads of your budget on décor and instead enjoy charming and sentimental décor that was made by your loved ones!
A lot of credit cards available today are interest-free for a certain period of time. So, using a credit card to pay for your wedding could offer you the luxury of being able to pay for some of your wedding expenses completely free of charge. This is a better option for those who are looking to borrow a smaller amount, around the £7,000-£10,000 mark.
With this said, interest free credit cards can be tricky. If you fail to repay the correct amount each month, you will be charged. This could, therefore, end up being a more expensive option than you initially expected. As well as this, the minimum monthly repayments tend to be a lot lower and so it can take you longer to pay off your credit card debt.
Weddings tend to follow the same monotonous routine of the ceremony and then the reception, involving a three course sit down meal. But, if there is any time to move away from tradition and do something different, then it’s now. Instead, why not opt for a buffet, picnic, or even a BBQ?
And if you really want to stand apart from the crowd, another cool and different idea would be to hire a food truck! You can get all types of food trucks depending on your theme. Whether you want a festival-themed, or a vintage truck, there is so much to choose from!
Effective Ways To Improve Your Credit Score
Wedding loans for poor credit are quite difficult to find. This is why it is so important to keep a close eye on your credit score and ensure that you have healthy financial habits so that you can score yourself the best deal on your wedding financing. And regardless of what you may have heard, wedding loans with no credit check do not exist, so instead of wasting time trying to tip toe around your credit score, follow these top tips to make sure your finances are in tip top shape!
1. Pay Your Bills On Time
I’m sure you would have heard this one several times before but that’s because it is so important! Paying your bills on time shows the lender that you are financially responsible and are capable of managing your money.
A lot of people underestimate the weight of this and fail to acknowledge that it is the poor maintenance of their bills that damages their credit.
2. Avoid Several Credit Card Applications At One Time
When you make a credit card application, providers will assess your credit history to decide on whether they should accept or reject you. However, when the credit card provider checks your credit report, an inquiry is placed on your report which indicates that someone has checked it.
And since 10% of your credit score is based on the number of inquiries that were placed on your credit report within the past 12 months, your credit can be damaged by an excessive amount of applications. As well as this, the provider may reject your application simply on the basis that you have applied for too many credit cards and may see it as an indicator of desperation.
3. Use Soft Search Before Applying
A ‘soft search’ is a credit check that does not appear on your credit report, and therefore cannot impact your credit in any way. To avoid making several credit card applications and risking your credit, always do a soft search before you apply to assess the likelihood of you being accepted.
4. Pay Off Previous Debt
Before you consider taking on more debt, you should always prioritise paying off previous debt. Whilst paying off your debt won’t erase your payment history, having outstanding debt can seriously hurt your credit score. Therefore, you should aim to pay off your debt as soon as you can.
5. Build Your Credit
The one thing worse than having bad credit is having no credit history at all. The lender cannot assess you without a credit file so if you do not have one, you are unlikely to be accepted.
Consequently, it is important to build your credit with a credit card to show the lender that you can manage your finances.
6. Check For Mistakes In Your Credit File
It was found that a whopping 42% of people across the UK found mistakes in their credit report. This includes missing or outdated information that can affect your credit score. Most of the time they can be easily rectified so it is important that you are keeping an eye on this and contact the appropriate people to ensure the mistakes are fixed.
Find out what credit reference agencies that your lender reports to and contact that particular agency directly to get your details corrected.
Now that you are taking steps to improve your credit, you don’t have to worry about having to find track down wedding loans for poor credit. Now you can say I need a loan for my wedding and receive it right away, stress-free.
By now, I hope we have answered most of your questions. But, if you are wondering about some things, then find all the answers to the most frequently asked questions regarding wedding financing below.
I need wedding financing. How much can I borrow?
You are able to borrow anything from £100 to £5,000 for wedding financing with Flexy Finance.
Can I get wedding loans for poor credit?
You’re going to have so many things to prepare for your big day that the last thing you want to worry about is if you’ll be accepted for your wedding loan. Whilst you are usually required to have a good credit score to qualify for wedding financing, we deal with a large panel of lenders so there is an increased chance of you being accepted for wedding loans for poor credit. However, it is completely up to the lender’s discretion and is dependent on whether you pass their criteria or not.
Can I get wedding loans with no credit check?
When one chooses to borrow money, it is often asked whether a credit check is compulsory. And the answer is always yes. It is not possible to get wedding loans with no credit check. All lenders, no matter what type of lending it is, will carry out credit checks.
I need a loan for my wedding. What are the requirements?
If you want to be considered for wedding loans UK then you should possess a good credit rating, be over the age of 18, and own a UK bank account.
What can I use wedding loans UK for?
When it comes to your wedding, there is going to be so much ground to cover. Everything from venue, invites, food, and wedding outfits all cost money and the expenditure is quickly going to add up. The good news is that wedding loans UK can be used for pretty much anything. So, whether you need it to afford your dream wedding dress or to pay a venue abroad, it is completely up to you – as long as you get to experience your dream wedding!
Will my partner’s credit affect me when we are married?
A common misconception regarding finances in a marriage is that you and your partners credit records will automatically be combined into a joint file. Since it is the activity under your name that impacts your credit, marriage cannot affect this. So, if your partner has poor credit and you are concerned that this may negatively impact you, don’t. It is only when you open a joint account where your spouse’s credit history will be shared on both of your credit reports.
Should I get wedding insurance?
Wedding insurance was designed to protect the money you spent on your wedding in the unfortunate circumstances that something goes wrong or that you decide to cancel the wedding. However, different companies will cover different things and their policies can vary. So, whilst I would suggest that you insure your wedding, it is important to opt for the one that covers the most and offers you the most protection.