Are you busy planning your big day? If you’ve got a dream venue to book, wedding outfits to buy and a growing guest list to cater for, it’s easy for the costs to spiral out of control. When your budget won’t stretch and your loved ones can’t chip in, taking out a wedding loan is one option for boosting your finances.
You might struggle if your credit score is less than perfect, however. Money is just one reason why fewer opposite-sex couples are getting married than ever before – but some lenders could still consider your application.
Below we look into how getting a bad credit loan for a wedding works and weigh up the pros and cons of taking this route.
What other criteria do lenders look at?
Your credit score will be a key factor for most lenders, but some may be willing to look past it and assess your situation as a whole.
There are certain basic criteria you’ll be required to meet, such as being over the age of 18 and living in the UK. Some lenders may only consider homeowners, while others might ask for a guarantor.
Beyond this, your income and outgoings will be key factors in judging whether or not you can be relied upon to repay a loan.
How much could you borrow for a wedding?
Wedding loan amounts vary by lender but can be anywhere from a few hundred pounds to tens of thousands. This could be enough for a few extras or your whole day.
Consider how much you need to borrow based on what you, your partner and your families can contribute.
Pros and cons of wedding loans for bad credit
It’s important to consider the benefits and drawbacks when taking out any loan.
A wedding loan could provide the quick source of cash you need to avoid delaying your big day. It will also help to spread the overall cost in more manageable instalments.
With bad credit however, you’re likely to have fewer lenders and higher interest rates to choose from. And if for whatever reason you can’t afford the repayments, you could get into a cycle of debt that makes your credit score even worse.
Quick tips for improving your credit score
There are lots of ways you could improve your credit score before applying for a wedding loan. Here are five quick tips:
- Register on the electoral roll in your local area
- Check your credit report for mistakes
- Check if you’re financially linked to a person with a poor credit rating
- Set up automatic payments to pay your bills on time
- Pay off any outstanding debt where possible
A loan could help to make your dream wedding a reality. Make sure to research your options before deciding if this route is right for your relationship.