Best Wedding Loans of 2023

» MORE: Find an unsecured personal loan

What is a wedding loan?

A wedding loan is an unsecured personal loan you use to pay for wedding expenses.

With a wedding loan, you borrow money from a bank, credit union or online lender and use the funds to pay for the wedding and other related expenses — though technically you can use the loan to pay for anything.

You pay back the loan with monthly payments that include interest, usually over one to seven years.

Should you get a wedding loan?

It’s best to pay for your wedding with money you’ve saved, but that isn’t always an option for couples. Wedding loans can help you cover any remaining expenses via a lump sum that has a predictable repayment schedule.

Before opting into a wedding loan, make sure you can afford the monthly installments and consider how long you want to be paying off your big day.

Wedding loan pros and cons

Pros of wedding loans

• Fast funding: Personal loans can be funded quickly — usually in less than a week but sometimes as fast as the same business day you apply.

• Credit reporting: Most lenders report payments to the three major credit bureaus — Equifax, Experian and TransUnion — so you have the opportunity to build credit as you make on-time payments to pay the loan off.

• Lump sum: You receive the funds in one lump sum, which can help you stick to your wedding budget.

• Fixed monthly payments: Wedding loans have fixed interest rates, so you make the same payment each month. When you’re shopping around, you can compare offers from different lenders to see which can offer you monthly payments that best fit your budget.

» MORE: Calculate your personal loan payments

Cons of wedding loans

• Rates depend on your credit: Your credit is a major factor in determining whether you get approved for a loan and what rate you get. A low credit score could lead to a high annual percentage rate. Lenders also use your debt-to-income ratio to assess whether you can afford the monthly payment on a loan.

• Long terms: You could be repaying your loan for up to seven years with a personal loan. Consider how long you want to pay for your wedding after the honeymoon is over.

Cost of a wedding loan

Unsecured personal loan APRs typically range from 6% to 36%. An average wedding in 2022 cost $30,000, according to The Knot’s 2022 Real Weddings Study. The higher your loan amount, the more money a low interest rate will save you.

Say you get a three-year loan for $15,000 — half the average wedding cost. On the low end, a 6% APR would have monthly payments of $456 and cost $16,428 overall.

That same loan with a 36% APR would have monthly payments of $687 and cost $24,734 overall.

» MORE: Calculate your wedding’s cost

How to qualify for a wedding loan

Borrowers with good or excellent credit (690 credit score or higher) typically get the lowest rates on personal loans. Consider these options to help your chances of qualifying and receiving a low rate.

• Check your credit report: In addition to paying your bills on time and keeping debt levels low, check your credit report for errors like accounts that aren’t yours or inaccurate data. You can dispute the errors online or by phone.

• Get a co-signed or joint loan: You can add a co-signer to the loan, or you and your partner can co-borrow the loan. Adding someone to your application with better credit or a higher income can help elevate your chance of approval and even get you a lower rate.

• Pre-qualify for multiple loans: Rates and terms vary between lenders, so consider pre-qualifying with a few to compare offers. Pre-qualification typically involves a soft credit inquiry, which has no impact on your credit score.

» Get started: Pre-qualify with NerdWallet to check your rate with online lenders.

How to get a wedding loan

Once you’ve decided on a lender, you’ll need to apply for the loan. Whether you’re applying with a bank, credit union or online lender, most applications are completely digital.

As part of the application, you’ll be asked to provide personal and contact information, like proof of identification, Social Security number, address and phone number. You may also need to provide proof of employment and income and information on any debts.

Once you submit your application, the lender will conduct a hard credit pull and make an approval decision. While some decisions are instantaneous, other lenders may take a few days, especially if the lender needs more information.

Once approved, you’ll receive a loan agreement, and after that’s signed, the funds are deposited into your bank account and available for use.

» MORE: How to apply for a personal loan

How wedding loans affect your credit score

There are two ways a wedding loan can affect your credit score.

When a lender conducts a hard credit pull during the application process, a few points are temporarily knocked off your credit score.

If you’re approved for the loan, your payment history will also be reported to the credit bureaus. While a history of on-time payments can help build credit, making late payments or defaulting on the loan can hurt your score.

Wedding loan alternatives

Compare other options for financing your wedding so you can celebrate your big day feeling confident you’ve made the right financial choice.

Savings: With a long enough engagement, you and your partner may be able to save up to cover the cost of the wedding, interest-free.

Financial experts don’t recommend incurring debt for discretionary expenses, like a wedding. Instead, estimate your wedding’s cost and then choose a strategy for saving.

0% APR credit cards: You may be able to pay for the wedding interest-free with a 0% APR credit card. The zero-interest promotional period on these cards can last up to 21 months.

You usually need good or excellent credit to qualify for this type of card. Be mindful of the card’s typical APR, which will take effect if you can’t pay the balance during the promotion.

Rewards cards: You can put some of your expenses — like the dress and decorations — on a rewards credit card and potentially get cash back. A travel rewards card could help you put money toward your honeymoon, too.

These cards also require good or excellent credit to qualify, and you may not get rewarded for all of your expenses. But they’re an option if you’re going to use your own cash to cover some of the costs.

» COMPARE: Best credit cards for wedding expenses

Downsize: You can also try to pare down the guest list or find other ways to save on your wedding.