Research by 'The Wedding Report' has revealed that the average cost of getting married in New Hampshire is now a staggering $43,150. Although costs do tend to be higher in Massachusetts, costs remain upwards of $22,000. It quickly becomes clear that, without savings or parental assistance, it will be necessary to borrow money. A low APR loan from a bank or peer-to-peer lender can be used to cover the cost of a wedding ceremony, photographer, ring, freshly cut flowers and the honeymoon. There are a number of lenders that could help to spread the cost of this enormous outlay.
Unsecured vs Secured Wedding Financing
It is possible to pay for a wedding with either an unsecured or secured personal loan. A secured loan involves putting up an item of value as collateral, such as a car or home, in order to borrow money. Fail to repay the debt and the collateral will be lost. This security means that they are ideal wedding loans for bad credit. Unsecured bank loans don't give the lender the same opportunity to recover their money in the event of default. This type of loan will only be extended to people with fair, good or excellent credit.
Loans for Weddings from a Peer-to-Peer Lender
The peer-to-peer lending process involves people lending to other people with an intermediary to manage the process. Each loan consists of multiple small loans from private lenders that are grouped together. The most popular providers of wedding financing includes Prosper.com (U.S.), Lendingclub.com and Zopa.com (UK). They offer unsecured wedding loans to people with fair, good and excellent credit scores. The better the applicant's credit rating, the lower the cost of borrowing. A wedding loan for bad credit isn't available from a person-to-person lender.
Unsecured Wedding Loans from a Bank
Although most banks provide unsecured loans for weddings, interest rates have risen sharply since the recession. Avoid making too many applications as each credit search will show on a credit report for 12-months. It is always advisable to use a price comparison service, such as comparethemarket.com or moneysupermarket.com, to trawl the market for a low interest rate loan. The cost of unsecured wedding financing can normally be spread over a period of up to 5-years.
Cosigner Wedding Loans for Bad Credit
If paying for a wedding is proving difficult and adverse credit is an issue, a cosigner could provide the answer. In the event of default, the cosigner becomes responsible for the loans repayment. It is important that the cosigner has a good or excellent credit rating as lenders are far more likely to approve a loan application. It is important to bear in mind that cosigning a financial agreement has potentially negative ramifications for the other party. The majority of cosigners are very close friends and family members.
Negotiating the Cost of Paying for a Wedding
Getting married is extremely expensive so most people will take time to save up some of the money to reduce the amount that they need to borrow. If a parent is unable to help pay for a wedding, a low APR loan may be the only answer. Whether an unsecured or secured loan for a wedding is chosen depends upon a number of factors, most notably that person's credit score. It is worthwhile performing some credit history repair prior to applying for wedding financing in order to increase the likelihood of a successful application.
Sources
"NH wedding statistics." New Hampshire Wedding Magazine.
"Wedding statistics." The National Association of Wedding Ministers.
Asa Ghaffar - Asa has over 10 years of practical experience in loan approval, secured lending, bad credit repair, stock trading and debt management.
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