A wedding is a once in a lifetime event, and every couple wants to make it memorable. Well, it’s possible to spend the least and still get a great wedding. But it’s also possible to borrow some cash and get that unforgettable grand wedding.
You should also know that taking loans for a wedding is a great financial risk. So, before you can make the bold decision starting your married life in debt, take a look at the list of pros and cons you should know about wedding loans.
Pros of Wedding Loans
1. You have Many Lenders to Choose From
There is a host of financial institutions ready to finance your wedding. You can get wedding loans from a bank or a payday loan lender you trust.
You can also get it from credit unions or various online lenders in the form of personal loans. This means you can shop around and get the best interest rates possible.
Before settling with any financial institution, check their fees, loan terms, and interest rates.
2. Wedding Loans are Easy to Acquire
Owing to the overwhelming number of institutions ready to lend you money, it’s no doubt it’s easy to get this kind of a loan. You can even apply online and get your loan approved in a matter of minutes.
Many lenders take the shortest amount of time to review applications and approve the loans. Some even promise to deposit the amount in your account in just 24 hours.
3. Wedding Loans Come With Lower Interest Fees
As compared to credit card loans, wedding loans have relatively low-interest rates making them cheaper options. If you have a good credit score, you’ll manage to secure wedding loans with very favorable interest rates.
If you’re looking for the easiest ways to pay off your vendors, taking wedding loans can be a viable option.
Cons of Wedding Loans
1. Starting Your Marriage in Debt
Taking a wedding loan means you’re going to have to deal with financial strains in your marriage for several years before you can get back on your feet.
This could put a lot of stress in your marriage life as you might not leave up to each other’s standards.
Not to mention that marriage alone comes with increased expenses, especially if children are involved.
2. It Blocks you from Accessing More Loans
A wedding loan will reflect in your credit report, which means other lenders will see that you have an existing loan when you make another application.
You might think of getting a mortgage or buying a car after your wedding, but that won’t happen easily if the debt you incurred for your wedding is still recorded in your credit history.
If you’re lucky to get a loan, you might not qualify for a high amount.
3. Possible Higher Interest Rates
Wedding loans are usually taken out of urgency, which means they’re short-term loans that attract high-interest rates. You should take your time to calculate the potential monthly payment and determine if this is the kind of money you can afford.