Wedding Loans: How To Finance Wedding Costs

Whether you’d like a large, extravagant wedding or a small, casual affair, you’ll likely need to spend money on your celebration. From cash savings to side hustle income to crowdsourcing, there are ways to pay for your wedding without going into debt. There are also tricks for reducing costs and sticking to a spending plan.

But even the most careful budgeter may find they need additional help to finance their wedding. While there are a few financing options available, a wedding loan may be the best fit. Before you start booking appointments, it’s important to know your options and weigh the pros and cons before committing to a loan.

How much does a wedding cost?

According to the Knot’s most recent Real Weddings Survey, the average cost for a wedding in the U.S. is $35,000. The total cost depends on several factors, including your wedding date, location, venue, guest list and priorities.

“My biggest advice is to get clear on your priorities and figure out what aspects of your wedding mean the most to you, then allocate your funds accordingly,” says Jessica Bishop, founder of The Budget Savvy Bride and author of The Budget-Savvy Wedding Planner & Organizer. “For example, if photography is super important to you, invest more there and consider saving in other areas [by having] DIY décor or a more intimate guest list.”

Wedding costs to consider

While your wedding can be whatever you dream, there are some common costs that come with most weddings. These include:

• Ceremony.
• Venue.
• Food and drink.
• Flowers.
• Video and photography.
• Attire.
• Wedding cake.
• Invitations.

According to Bishop, some of the biggest expenses include the venue, catering and photography. “The venue can take up a significant chunk of the budget,” she says, “especially if you opt for a popular location during peak wedding season.” According to The Knot’s survey, the average cost for the reception venue is $12,800.

When it comes to catering costs, Bishop says it depends on how many people you’re feeding and what type of meal service you choose. Often, buffet and family style are less expensive than meals that are plated and served. There are also costs that are often overlooked, says Bishop. Some of the hidden costs she experiences with couples include tips for vendors, gown preservation, marriage license fees, dress alteration and postage for invites.

The various costs may feel overwhelming, but using cost-saving strategies, creating a wedding budget and planning how to finance your wedding can help your marriage start out on stronger financial footing.

Ways to reduce wedding costs

“One of the best ways to reduce the cost of a wedding is to focus on your priorities and trim the rest,” says Bishop. “Decide what aspects are most important to you and allocate your budget accordingly. For everything else, consider more affordable options.”

These can include a few swaps to lower some of your out-of-pocket costs:

• Using fake or paper flowers instead of fresh flowers.
• Sending digital invites instead of paying for paper and postage.
• Purchasing a smaller or simpler cake.
• Hosting your wedding on a weekday or during an off-peak season.

While there are several options for cutting costs, cutting your guest list is one of the best ways since you typically pay per plate for catering — and will need a bigger venue as your guest list grows. When you have less people attending your wedding, you have less chairs to rent, favors to buy, invites to send, programs to print and drinks to pour. Cutting your guest list can be difficult, but there are ways to make it easier. For example, you could have an age limit, not invite plus ones or only invite family and close friends.

Options to pay for your wedding

Even the most strategic and savvy saver will incur costs for their wedding. When you need to pay for your wedding, there are a few options before you resort to borrowing money.

Savings

Couples are often engaged for months or years before the wedding. If you have time, start saving money as soon as that special someone says “Yes!” and the ring is on their finger. Set up a wedding-specific savings account with your significant other and save a portion of your paycheck after meeting all of your other financial priorities. Cash is typically the best way to pay, since you won’t have to pay extra on accumulating interest.

Side hustle income

“Some couples also choose to monetize their skills and start a side hustle — or as I like to call it, a bride hustle,” says Bishop. Earning extra money and putting it into a wedding fund can help speed up your savings plasn. A few ways to earn extra cash include selling baked goods or handmade items or by finding gigs you can do on your own time, like driving for a rideshare company or delivery service.

Help from loved ones

Some family members may be willing to help you pay for a wedding. If a family member wants to help foot the bill for the big day, this is a good way to finance a wedding without having to get a wedding loan, use a credit card or dip into your own savings. You can opt to have your wedding be your gift.

“Another idea is to crowdfund in a fun and personalized way,” says Bishop. “Platforms like Honeyfund allow couples to ask for contributions toward wedding expenses, the honeymoon, or even specific parts of the event (like the cake or DJ) instead of traditional wedding gifts.”

Credit Cards

Some credit cards offer an introductory 0 percent APR for a set period — typically between 12 and 24 months — after you open the account. This means you have time to pay off the balance without being charged interest.

A 0 percent APR credit card can be a great way to pay for smaller expenses, like vendor deposits, the cake or wedding favors, that you can pay off before the promotional period ends. Credit cards can be handy — especially if you earn points — but only if you can pay them off before they accumulate interest. Credit card interest rates are notoriously higher than many other loan options, with average rates around 20 percent.

Home equity products

A home equity loan allows you to borrow a lump sum of money against the equity you have in your home by taking out a second mortgage. Similarly, a home equity line of credit (HELOC) allows you to borrow against your home equity, but you receive the money in a line of credit instead of a lump sum. You can borrow and repay the funds as needed during the draw period. When the draw period ends, you pay back any money you borrowed in monthly installments.

While the interest rates on these products may be lower than other wedding loan options, these loans use your house as collateral. That means if you default on your loan, you could lose your home. Home equity loans also have longer terms, up to 30 years, meaning you could carry debt from your wedding for more than half your marriage or longer.

Because of the risk, you should consider other financing options — and cutting costs — before taking out a home equity product.

Wedding loans

Credit cards, home equity loans and HELOCs are all forms of debt that either come with high interest rates or the risk of losing a home. While you should avoid taking on debt before starting a new life with someone, if you do decide to finance your wedding with borrowed money, a wedding loan may be a goodoption to cover larger expenses or deposits that won’t fit on a credit card.

What is a wedding loan?

A wedding loan is a personal loan used to cover various wedding expenses and is generally marketed toward engaged couples planning their big day. Some couples may use a wedding loan to finance certain parts of the event or to foot the entire bill.

These loans are easy and quick to apply for — many lenders will even approve you online in a few minutes. The interest rate you’ll receive varies and is typically based on your income, credit score and current debts.

“A wedding loan can make sense if you’ve exhausted all other options and it allows you to create the day you’ve always dreamed of without completely derailing your finances,” says Bishop. “If you have a steady income and a solid plan to repay the loan quickly, it might be worth considering. Just make sure you’re not borrowing more than you absolutely need, and look for the lowest interest rate you can find.”

How much does a wedding loan cost?

How much a wedding loan costs depends on various factors, such as your loan term, interest rate and how much you want to borrow. You can use a personal loan calculator to easily estimate how much your exact loan will cost.

The following table shows the costs of a three-, five- and seven-year loan with a 12.31 percent annual percentage rate and loan amount of $35,000, the average cost of a wedding.

Pros and cons of wedding loans

“A loan allows you to spread out payments over time, making venue or vendor costs feel a little less overwhelming,” says Bishop. “[But] loans mean monthly payments, which could impact your ability to save for other exciting milestones like buying a home or taking a honeymoon.”

When considering whether to finance your wedding, it’s important to consider whether the benefits outweigh the drawbacks.

Pros of wedding loans

• Soft credit checks: Lenders that offer wedding loans often allow you to prequalify for financing, so you can see the loan offers at your disposal without hurting your credit.
• Potentially lower rates: Compared to credit cards, interest rates for wedding loans are usually lower and can save you thousands of dollars.
• Shorter repayment terms: Most wedding loans offer repayment terms of three to five years, so you can pay your wedding off in a more reasonable amount of time.
• No collateral: Since wedding loans are unsecured, you don’t risk losing your house, your car or any other asset you own if you’re unable to repay them.

Cons of wedding loans

• Additional debt: Wedding loans can steer you into a serious cycle of debt, especially if you already have other debt.
• High interest rates: If you don’t have a good credit score, you may have to settle for a high interest rate that can increase the overall cost of your loan.
• Potentially unnecessary spending: Wedding loans may lead you to spend on upgrades and extras you wouldn’t consider if you paid for your wedding with cash.

How to get a wedding loan

To apply for wedding loans, follow these five steps:

1. Check your credit: Figure out where your credit stands by checking your credit score. If you don’t have the best credit, you may want to take steps to improve it before you apply for a loan.
2. Shop for lenders: Check each lender’s credit requirements, funding times, loan rates and terms so you can determine which ones are a good fit.
3. Get prequalified: Prequalification won’t impact your credit score and can give you an idea of the loans available. To prequalify, you’ll need to fill out a short form with your personal details.
4. Compare offers: Closely compare the wedding loan offers you receive. Consider interest rates, terms and fees. Choose the most favorable option that will save you the most money.
5. Apply: Once you decide on a wedding loan, complete the formal application. Most lenders offer quick approval for qualified applicants and typically deposit funds within a few business days or even 24 hours.

Where to get a wedding loan

If you decide to get a wedding loan, shop around to get the best rate. These types of loans are available anywhere you would get a personal loan, including banks and credit unions and online lenders.

Banks and credit unions

Both banks and credit unions may offer a wedding loan and typically have online services and physical branches. However, the way to get them may differ. While both require your personal and financial information to get the loan, you’ll need to first apply for membership to get a personal loan from a credit union. You can get a personal loan from a bank without becoming a member.

Online lenders

Most online lenders conduct their business fully online and over the phone. There usually aren’t physical branches. That means you do everything online, from applying for the loan to uploading necessary documents and verifying your information. You can also get approved within days or even minutes at some lenders.

Bottom Line

The cost of a wedding will depend on the type of celebration each individual couple wants and what they prioritize. While there are tricks for reducing costs and other ways to pay for your big day, you may need additional help financing your wedding. And while there are several loan options available, a wedding loan may offer a shorter term and a lower rate without putting your home at risk. But there are still risks to borrowing money.

“If you do decide a loan is the right choice for you, make sure to compare lenders, read all the terms and conditions carefully and only borrow what you can realistically pay back in a reasonable timeframe,” says Bishop. While these are all important steps to protect your finances, there’s another piece of advice that’s important to protecting your money — and your celebration of love.

“It’s all about being intentional with your decisions while staying true to what matters most to you as a couple,” she says. “Focus on celebrating your love in a way that feels authentic and financially comfortable for you both.”