Ultimate Guide to Wedding Loans

Everything you need to know about financing your wedding with a loan

Weddings are expensive, with the average cost amounting to $33,391. It could, however, cost more or less depending on where your wedding is held.

Percentage of couples that pay for their weddings with personal loans or credit.

44.5% of weddings are paid for by the bride’s parents, 12.7% by the groom’s parents, and 41.1% by the bride and groom themselves.

But regardless of who’s paying, it isn’t a small expenditure. Additional financing may be needed to make your dream wedding a reality.

Here’s a look at various wedding loan options to help you fund your big day.

Planning your wedding budget

Start by making a budget to determine how much money you’ll need for your wedding and how much you’ll need to borrow.

What type of wedding do you want? Formal or casual? Indoors out outdoors?

Do you want a wedding at a hotel, seaside resort, in a local park, or at someone’s home? Do you want an open bar? Are you planning on having floral decorations?

These are just a few questions you need to ask yourself.

Once you’ve figured out the type of wedding you want, research the things you’ll need. Use a wedding cost estimator to help you determine the overall cost of your wedding.

Here are some average costs to consider when planning a wedding.

Where you live and plan the wedding will have a big effect on the cost of the wedding.

The cost of weddings has increased substantially over time. For many, the cost is prohibitive, which is why a third of brides and grooms need a loan to finance their weddings.

What is a wedding loan?

A wedding loan isn’t an actual type of loan. It’s a personal loan that just about anyone can get.

Approval and interest rates are based on factors such as:

  • Your credit score.
  • Your credit history.
  • Whether the loan is secured or unsecured.
  • The amount of money you need to borrow.
  • Your debt-to-income ratio.

If you don’t have great credit, some lenders allow for co-signers. Ask a family member or friend with good credit to cosign (perhaps as a wedding gift), and you’ll have a higher chance of getting a loan with a good interest rate.

Secured vs. unsecured wedding loans

Typically issued for specific amounts, personal wedding loans come in secured and unsecured forms.

A secured loan uses an asset to help guarantee that the loan will be repaid, such as a car. If you don’t repay the loan as agreed, the loan company may take your car.

Unsecured personal loans don’t require you to put up any collateral.

These loans are harder to get, however, as they are riskier for the lender. They also feature a higher interest rate than secured personal wedding loans.

4 loan options to help fund your dream wedding

Personal loan

Many personal loan lenders are starting to provide unique offerings tailored for weddings.

For example, LightStream promises to provide quick and simple financing for weddings to help brides avoid any extra drama while planning their big day. Prosper offers loans to cover wedding and honeymoon costs.

But you’ll want to be careful when using a personal loan to finance your wedding. It’s easy to overspend and you’ll be stuck with a large amount of debt. That’s not an ideal way to start life as a married couple.

So you may want to consider picking up some extra work on the side or asking your parents for help first.

If you do decide to take out a personal loan, start by seeing what you qualify for before applying with any given lender. There’s no harm in doing so, as getting prequalified won’t hurt your credit score.

That way, you can see what certain lenders will offer you before you commit.

Get personalized offers from competing lenders here.

Credit cards

Credit cards are another option for financing your wedding. Your best bet is to get a card with a 0% APR that lasts 12 to 18 months.

This will give you some time after the big day to pay off the card without interest.

If you do decide on the credit card route, make sure you’re able to repay the debt before the promotional period ends. Otherwise, the APR is likely to rise substantially.

Compare personal credit cards side-by-side.

Home equity line of credit (HELOC)

HELOCs allow you to borrow against the equity in your home to get access to cash when you need it. The cash can be used to help fund your wedding.

They’re similar to credit cards in that you can borrow up to your credit limit (which is based on a percentage of your home’s equity), make repayments, and then borrow again.

HELOC’s come with low, variable interest rates. That means payments will fluctuate every month based on market trends. The interest you pay is tax-deductible.

Your home is used as collateral to secure the loan. So you’ll want to be careful before choosing this route, as you risk losing your home if you default on the loan.

Compare HELOC lenders here.

Home equity loan

With a home equity loan, you’ll receive a fixed amount of money as a lump sum upfront. Unlike a HELOC, a home equity loan generally features a fixed rate.

Your home is used as collateral to secure the loans on a HELOC and home equity loan.

It’s important to keep in mind that a HELOC and home equity loan put your home up as collateral. So you’ll want to be careful as you risk losing your home if you default on the loan.

Pros and cons of wedding loans


Here is a list of the benefits and the drawbacks to consider.

  • You won’t need to dip into your savings account.
  • Less of a financial burden on your parents to help cover costs.
  • Can focus more on planning your wedding and less on how to afford it.
  • With a low APR and short loan term (three to five years), you won’t be making payments for very long.
  • Unsecured loans have higher APR than secured loans.
  • Secured loans use your property as collateral.
  • Starting off your marriage with burdensome debt isn’t ideal. Credit cards versus personal loans.

Get financing today

If you lack the funds to make your dream wedding a reality, start by comparing personal loans to see what options are available to you.

See what you qualify for and find your best loan offer from competing lenders today.