The post Best Wedding Loans by Dan Schmidt appeared first on Benzinga. Visit Benzinga to get more great content like this.
If love doesn’t cost a thing, someone should inform the venues that host weddings.
Getting married has become a substantial financial commitment in America, and wedding costs continue to rise. Thanks to many COVID-19 delays and postponements, CBS News reports that a record number of weddings will take place in 2022, and the average cost has skyrocketed to around $27,000 per wedding.
Unless you have substantial savings or wealthy parents, you might be considering a personal loan to cover the cost of your ceremony. While no lender offers loans specifically for weddings, you can still get a reasonably priced personal loan to pay for one.
Quick Look: Best Personal Loans for Weddings
- Best Overall: LightStream
- Best for Excellent Credit: Sofi
- Best for Fair Credit: Upgrade
- Best for Bad Credit: Avant
- Best for Comparing Lenders: Credible
- Best for Variety of Terms: Marcus by Goldman Sachs
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6 Best Personal Loans for Weddings
One of the benefits of using a loan for a wedding is that partners can share the burden equally. If you and your spouse have good credit, your options will be wide open. But even couples with poor credit can find something manageable with some research and proper planning.
Best Overall: LightStream
LightStream is frequently a top choice for personal loans because it has low rates for good credit, different length terms and offers loan amounts between $5,000 and $100,000. A division of Truist Financial Corp. (the merged entity of SunTrust Banks Inc. and BB&T Corp.), LightStream has specific options for borrowers looking to remodel their homes, install swimming pools, pay off medical debt or finance a wedding.
Rates for wedding loans start at 5.73% (the standard starting rate for most unsecured loans) and terms vary from two years to seven years. You’ll need solid credit and high FICO scores to get the best rates. FICO scores below 660 are unlikely to be considered, but co-signers are allowed. LightStream can deposit cash as quickly as the same business day, and rate reductions are available with autopay.
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*AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Excellent credit required for lowest rate. Rates vary by loan purpose.
3.49%- 19.99%
$0
Up to 240 months
660
1 Minute Review
LightStream was founded by its parent company Truist Financial. The company offers a wide range of traditional and innovative personal loan benefits and opportunities such as home improvement loans and fertility financing to address a wide range of needs. The company charges APRs between 3.49% and 19.99%. Benzinga offers a review of LightStream’s personal loan options that provide a variety of personal loans while minimizing additional fees and promoting financial flexibility. The company offers diverse loans with varying term lengths, APRs, and uses. For example, Lightstream offers a variety of home improvement loans that are designed to assist with specific needs such as funding for landscaping or solar panels.
Best For
- Potential borrowers interested in quickly funded unsecured personal loans
- Same day funds
- People with stronger credit scores
- Doesn’t require collateral
- No late fees
- Potential same day funding
- Self-selected funding dates
- Offers a mobile application to ease access to loan information
- Not recommended for bad credit scores
Best for Excellent Credit: SoFi
SoFi offers personal loans for weddings or honeymoons, but you’ll need a credit score above 680 to receive approval and over 800 to get the best possible rates. If you have excellent credit, SoFi is one of the preferred options because it has rates as low as 6.99% and no origination fees, so all the funds can go directly toward the wedding.
SoFi offers between $5,000 and $100,000 for personal loans, and money can be deposited on the same business day. SoFi also has no late fees, and there’s no penalty for paying off the loan early. You can also check your rate easily through its website without receiving a hard pull on your credit report.
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securely through SoFi’s
website
Best for Fair Credit: Upgrade
If your credit isn’t stellar, you still have plenty of options for wedding loans. Upgrade is a lender without rigid acceptance standards — a FICO score over 560 should be enough for approval. While Upgrade doesn’t offer loans specifically for weddings, it has a variety of personal loan choices with terms as lengthy as 60 months.
Upgrade allows borrowers to take out as little as $1,000, with a max loan amount of $50,000. Like SoFi, there’s no penalty for prepayment, and funds can be in your account as quickly as the next business day. Upgrade processes loans quickly and has a tool for checking rates that won’t affect your FICO score.
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5.94%–35.97% (with autopay)
2.9% – 8% of your loan amount
24 – 84 months
N/A
1 Minute Review
As a lender of personal loans, Upgrade offers a host of benefits, such as a wide range of financing solutions with funding times as little as a few days. Upgrade maintains options for a range of credit scores and incomes; however, APRs tend to be higher than if you were to work with a traditional bank.
Nonetheless, it’s easier and faster to get approved for a personal loan from Upgrade than it would be at a bank or credit union. Upgrade isn’t a direct lender, so Upgrade doesn’t actually lend you the money but rather works with its network of partners to get you the funds you need.
Upgrade features annual percentage rates (APRs) between 5.94% to 35.97% on its personal loans. And although there are origination fees, you won’t have to worry about prepayment penalties if you decide to pay off your loan early. Plus, Upgrade offers a considerable number of discounts for things like opening a qualifying checking account or setting up autopay.
You’ll only need a credit score of 560 to qualify for funding — making Upgrade a great choice for borrowers with fair or less-than-perfect credit. However, for the highest funding amounts and the best interest rates, you’ll want your credit score to be in as strong shape as possible
Funding amounts range from $1,000 to $50,000, which makes these loans ideal for small- to mid-range financing needs. You can use a personal loan from Upgrade for a variety of purposes. However, funds can’t be used for gambling, investing or funding college expenses.
Most borrowers will use Upgrade personal loans to finance their business, consolidate debt, cover medical expenses, complete home upgrades or pay for a wedding. Whatever the scenario, when you need funding fast Upgrade is a solid choice.
Upgrade doesn’t allow co-signers on loans.
Upgrade, founded in 2017 and headquartered in San Francisco, California, was launched by a team of veteran fintech executives with prior experience at leading personal loan lenders, such as Lending Club. Upgrade has helped millions of people access personal loans and issued more than $10 billion to borrowers.
Best For
- Secured loans
- Debt consolidation loans
- Wide range of funding solutions
- Fast approval process for secured loans
- No prepayment penalties or fees
- Wide range of options for repayment terms and funding amounts
- 0.5 percentage point rate discount in exchange for setting up autopay
- Funding times as little as one business day
- Charges origination fees
- Higher-than-average APRs
- Not a direct lender
- Does not accept co-signers
Best for Bad Credit: Avant
Not everyone getting married this year will have good credit. If your FICO score keeps loans from lenders like SoFi and LightStream out of reach, consider Avant, which specialized in loans for borrowers with less than solid credit.
Terms and rates will vary, with the lowest rate for a personal loan starting at 9.95%. Yes, 9.95% is much higher than the rate other lenders on this list offer, but with bad credit, a 10% personal loan is better than high-interest credit cards. While there are no prepayment penalties, an administration fee is applied to each loan when granted.
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9.95%-35.99%
Up to 4.75%
24-60 months.
580
1 Minute Review
Established in 2012, Chicago-based Avant helps people obtain personal loans while offering transparent credit. Since its inception, Avant has helped over 1.5 million people receive funding.
One thing that makes Avant so unique is its background as a financial technology company instead of a traditional bank. Banking needs are addressed by Evolve Bank & Trust, a member of the Federal Deposit Insurance Corp. (FDIC). The FDIC insures deposits and protects consumers in case of bank disasters. Benzinga’s review of Avant determined it is a strong option for personal loans because of its reputation for positive customer experiences and fast funding options.
Best For
- People with below-average credit scores who need unsecured personal loans
- People who need fast funding
- Quick funding
- Fixed payments
- Mobile accessibility
- Additional costs such as origination fees
- No third-party guarantor such as a co-signer on a secured personal loan
Best for Comparing Lenders: Credible
Credible is an online marketplace where borrowers can search for the best personal loans based on their credit score, location and desired purpose of the loan. Its website is sleek and easy to navigate, and the search tool will aggregate data from 17 different lenders to find the best rate. Credible is so sure of its search tool it will even give you $200 back if you find a better rate with another marketplace aggregator.
Search for personal loans by choosing either the lowest annual percentage rate (APR), term lengths, credit score or loan amount. The search tool is intuitive, and prospective borrowers can check their rates from each lender directly through Credible’s web portal. If you find a better rate elsewhere, that free $200 can go toward tipping your wedding limo driver.
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Best for Variety of Terms: Marcus
Marcus is Goldman Sachs’ venture in the retail lending market, and with pockets that deep, the offerings are vast and varied. You’ll need a high credit score to get approved through Marcus, but accepted borrowers will have a host of options to select from.
No signup fees or prepayment penalties apply to personal loans from Marcus, and term lengths are between 36 months and 72 months. Marcus also allows one interest-free payment deferral after 12 consecutive months of on-time payments. Borrowers can receive loans up to $40,000, but Marcus is slower to process than some of the other lenders on this list (one to five business days for deposit).
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6.99 %–19.99%
$0
36–72 Months
660+ preferred
1 Minute Review
What makes Marcus so unique is that it offers a personal loan with competitive APR rates and no fees. Loan options include fixed rate loans that offer predictability and consistency to help with payments. Personal loans range between $3,500 and $40,000. The loan does not have sign-up fees or prepayment fees. APR rates range between 6.99% and 19.99%. Loan terms vary between 36 months and 72 months depending on factors such as your intended loan amount and credit score. It’s recommended to have a credit score above 660, but no minimum is clearly defined.
Best For
- No fees
- Competitive APR
- Loans tend to be on the smaller side
Frequently Asked Questions
Is a wedding loan a secured loan?
No, there’s no collateral to put up for a wedding loan, so wedding loans are unsecured personal loans.
Answer Link
What’s the best way to save for a wedding?
The best way to save for a wedding is to start early and shop around for the best prices. Research different vendors and venues in your area, and create a shortlist of your favorite places and businesses. Many wedding features can be DIY projects, such as table centerpieces and parting gifts. Sites like Etsy and The Knot have cost-saving ideas for couples planning a wedding.
Answer Link
Can you take out a loan for a wedding ring?
Yes, however, wedding loans are unsecured personal loans, so you won’t be getting a better deal because the ring can be used for collateral.
Answer Link
Wedding Personal Loan Requirements and Criteria
Because wedding loans are unsecured personal loans, there aren’t many requirements and criteria needed to receive one. Unlike an auto or home refinance loan, the age and status of your car or house isn’t a consideration. Instead, what matters for a personal loan is the credit between the two people getting married.
If you have high credit scores and a decent income, you can get approval from a wide range of lenders. But if you have poor credit or unreliable income, your choices will be more limited. Do your due diligence, and check rates with a few different lenders before choosing a loan. As long as you don’t get a hard credit pull, you can check your rate as frequently as you like.
Things to Consider Before Getting a Personal Loan for a Wedding
How is my credit?
Your FICO score, debt utilization ratio and annual income will be the biggest factors deciding your rate on a wedding loan. If you have good credit and a steady income, a personal loan for a wedding can be a great money-saving decision, especially if the alternative is high-interest credit cards or tapping into retirement savings.
What will the loan be used for?
Do you need the cash for the venue and caterer? Or the florist, photographer and DJ? Weddings have a lot of costs tied together, and it may be possible to work out a payment plan with certain vendors instead of going into debt to pay off your obligation. If you only need a small amount to pay a photographer or DJ, a credit card with a 0% introductory APR period might be a better option than a lengthy personal loan.
How soon can the loan be paid off?
When considering loan options for your wedding, think about how long it will take to pay off your debt. Are you planning on paying down your debt over, a few years or do you think you can knock it out in less than 12 months?
Personal loans make the most sense if you’re planning for a long-term obligation, but a credit card with a 0% introductory APR could be better if you can pay things off in less than a year. And always consider a loan with no penalty for prepayment — just in case you receive a large cash windfall from a generous relative.
The post Best Wedding Loans by Dan Schmidt appeared first on Benzinga. Visit Benzinga to get more great content like this.
