Generally, weddings are costly. According to a study in 2021, the average cost of a wedding was $28,000. Hence, if you plan to tie the knot this year, you should be ready to spend a significant amount of money. That said, although the average cost of a wedding is between $28,000 to $33,000 now, it is crucial to keep in mind that it is still possible to have a blissful wedding on any budget.
The keys to having a lovely yet budget-friendly wedding are saving, establishing priorities, and sticking to a budget. Ideally, it would be best not to use credit to pay for your wedding. However, there are instances when getting a wedding loan can help finance your situation. There are several easy cash loans available that can help finance your dream wedding. However, the question is, is getting a wedding loan a good idea? In this article, we will discuss what wedding loans are and the benefits they bring.
What is a wedding loan?
Truth be told, the term ‘wedding loan’ does not exist. It is not possible to go to a bank and request a wedding loan. Instead, what you should seek is a personal loan that can be used specifically to fund your wedding. In essence, wedding loans are personal loans, as the money can be used for anything. Typically, wedding loans are unsecured personal loans since they do not require collateral.
When managed responsibly, a personal loan in the form of a wedding loan in this sense is a great option to help finance your wedding through alternative means rather than using all your liquid cash or relying on high-interest-rate credit cards. Moreover, since it is a personal loan by nature, you can use it to pay not just for the wedding but for honeymoon-related expenses as well.
The benefits of getting a wedding loan
The question remains: Is taking out a loan for your wedding a good idea? The short answer to this question is yes, as long as you qualify for the loan. Plenty of benefits come with getting a personal loan to help fund your wedding; here are some of them:
1. Convenient and easy to get
As you begin planning your wedding, you may soon realise that your venue and vendors require upfront deposits to book their place and services. These costs can quickly add up, especially when you add your wedding dress and accessories to the calculation. And this is where a wedding loan can provide you with the cash you need to pay for the deposits.
2. Better interest rates and no prepayments
If you have a solid credit history and a good credit score, there is a high probability that you can get a wedding loan with a lower interest rate than your credit cards. This is one of the best benefits of wedding loans – they typically have better interest rates compared to credit cards. Aside from this, many wedding loans do not charge for prepayments.
These loans will permit you to pay off your debt early without incurring any penalty fees, which can save you on the costs of interest. If you plan to pay off the loan with cash gifts from your guests, or if some family members have offered to finance your wedding, you may not even need to pay any interest. To make sure that prepayments are authorised, it is best to double-check the language of your wedding loan.
3. Enhances credit score
Couples looking to build or enhance their credit can boost their credit score by successfully paying their wedding loan. This makes wedding loans a good idea, especially for couples just starting – but it’s best not to miss or delay payments as you do so. Having a higher credit score will make it easier for you and your partner to get loans in the future and will help keep your interest rates low.
Weddings are undoubtedly expensive. From the venue and decor to the food and your wedding dress, there are plenty of things you need to be prepared for financially if you want your wedding to be a success. However, having no big chunk of money in your savings account does not mean you can no longer pull off the wedding of your dreams. Fortunately, there are several instant cash loans you can get to help finance the wedding of your dreams, including personal loans.
For the most reliable personal loans with fast loan approval in Singapore, Orange Credit is the money lender you can trust! We offer an array of excellent loans that can be used for funding your dream wedding and a variety of other purposes, such as personal loans, business loans, payday loans, bridging loans, and consolidation loans in Singapore. Do not hesitate to contact us today to learn more about our valuable offers.