Should you get a wedding Loan?
This means you’d be covering your wedding costs with money you don’t have, be it from a personal loan or a credit card. This is a decision to make with your partner, because it’ll affect on your marriage later. It’s important to talk about whether or not that financial burden is something you want to deal with when you get back from the honeymoon.
Why you should borrow for your wedding
Should you borrow for your wedding? Many might say No but I am of a contrary opinion. Your wedding day should be special. A wedding is that big day that every girl (and some men) dream about. Ladies start dreaming about their wedding day right from when they are little children. From the little flower girl roles that we are happy to get picked for, to our amazing aunties (brides) that we hope to be like someday. The joy the day brings to a family, makes ladies day dream about that day even more.
When is it okay to get a loan for your wedding?
Being smart about this loan means satisfying a couple of qualifications to justify your decision to borrow money for your wedding. Before you can apply for a loan, make sure you satisfy as much as you can from these 5 qualifications:
If you have to get married now.
Do you really have to get married now? Sometimes, couples are in a hurry to get married because the other is about to go abroad for work (or maybe a military service member deployed in another country). If you are trying to race against time, you can probably justify the need to get a loan just so you can get married.
If you have a good credit score.
Another qualification that you need to meet before you borrow money for your wedding is your credit score. Do you, or your finance, have a good credit score? If you have a bad score, you might be given a high interest for your loan. This will increase the money that you will be wasting on the loan. Try to avoid this as much as possible.
If you have a stable job.
This is another qualification that will help you decide if you should get a loan or not. If your job is not stable, you might find it hard to pay off your loan. If you lose your job or you are dependent on freelancing projects, you should think twice before you borrow money. Skipping on payments might cause stress early on in your marriage. You want to avoid that as much as possible.
If you have a payment plan in place.
Before you apply for a loan, make sure you have a payment plan in place. Creating one will help you check if you have the funds to pay off the loan. If you do not know where you will get the money for the monthly contributions, that is a problem. Find where you will get the money first for the payments before you get a loan.
If you do not have other debts.
The final qualification is to not have other debts. Ideally, you want to have zero debt at all. But if you have a small amount of debt, you can probably check with your payment plan if you can really afford to add more. If it turns out that you can, then proceed with the loan.
Before you borrow money, it is very important that you understand why you are doing it. Sure, love is important but you have to be careful about the amount of debt that you will put yourself through.
Every bride wants something spectacular, something amazing. The perfect wedding gown, the perfect (choice) location, perfect pre-wedding and wedding photos, owambe aso ebi, sound and food. There is a popular saying in Nigeria that people may forget everything about a party, but they would never forget the food they ate, food for every event makes a statement.
The wedding may be small but class is everything. You want your children to look at your wedding pictures and have that perfect picture of their own day.
Although many say borrowing is bad and you should not borrow to start a life, I beg to differ. Borrowing for a wedding is not a bad idea as long as you stay within your means. When borrowing, it is important to do an analysis of your loan repayment and the amount you would need to spend to take care of your new family. The wedding, especially the church (white) wedding is really for the bride and if going big would make the woman you love happy then it is worth the shot.
If you simply must get a loan for your wedding, borrow wisely. Most loans, especially if they are marketed as wedding-specific deals, are simply personal loans. That means you will not pledge collateral – your credit scores and your income are the factors that determine whether or not you’ll get the loan. Before applying, check your credit and fix any errors or negative items that will prevent you from getting the best deal.
It might be necessary to join forces. If you can’t qualify for a loan on your own (because you have thin or bad credit or insufficient income to qualify), your future spouse might need to co-sign for the loan. That means both of you are equally responsible for repayment
Please note that while borrowing, you should not become greedy in the process. You may be cash trapped at the moment and need to borrow for this purpose that is completely understandable. On the other hand, what is not understandable is borrowing an outrageous amount that you would not be able to repay conveniently and starting your new family in a pile of debt.
People generally tend to be extreme when taking a loan because they feel it is free money at the point of collection but the story becomes different at the point of repayment.
Do not take a loan that requires collateral for your wedding, that is a very big NO. Under no circumstance should you take a loan so big that you need to secure it with collateral. Also, do not take loans that are calculated on a flat rate basis and have penalties for early repayment because this would prove to be more expensive in the future, instead, take loans that require guarantors only with flexible and convenient repayments like that which Creditville Limited offers.
Where to Borrow Money For Your Wedding?
For the best rates, get a personal loan from a bank, credit unions, private lending institutions like Creditville Limited or online lenders. Private lenders might also be an option – they offer relatively short-term loans at competitive rates. If you can’t pay the loan off within a few years, it might be best to re-think.
Credit cards are risky for funding your wedding. Sure, they’re easy to use, but things can get out of control easily. If you have great credit and (more importantly) a plan to pay off your loan within six months or a year, you could use a 0% interest convenience check. But if you don’t pay the loan off quickly you’ll almost certainly find yourself in over your head.
For the best terms, look for loans with the following characteristics:
- Unsecured loans do not require any collateral, and you won’t lose your house or car if you fail to repay
- Short term loans take less time to repay, so you’ll pay less interest over your lifetime (and you can put the loan behind you more quickly)
- A fixed interest rate means you’ll know exactly what your payment is until you retire the debt (although you might get slightly lower rates if you go with a variable rate)
- Installment loans are one-time loans that you pay down over time.
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