Your wedding is probably going to be one of the most expensive celebrations that you're ever likely to host. Whether you are planning a large reception or an intimate day, it's going to cost a lot of money.
When you think about all the costs, you are looking at paying thousands of pounds for a wedding in the UK – most recent data puts the average figure at around £18,000.
For many newlyweds, starting off married life in debt is all too common, but there's certainly a few things you can do to prepare yourselves financially and get the best wedding loans for you, even if you have a poor or bad credit history.
Before you decide what type of loan you want to finance your wedding, create a budget and a plan for what all the money you need is going to be spent on. It might also be wise to set aside a little extra money for any possible unforeseen expenses – inviting an extra family member at the last minute, for example.
Once you have an idea of what your budget is, decide what proportion of it you would like to pay on credit. Ideally, you want to be able to pay for most of your wedding up front as you do not want to begin your married life straddled with lots of debt.
If you are looking for a wedding loan for bad credit, then consider the fact that if you are approved you are more likely to get a loan that comes with a higher rate, and may not be able to get access to the same range of loans and credit cards available to those with good credit scores.
Depending on how much you want to borrow and your credit rating, you could look at getting a 0% purchases credit card, a low rate personal loan or, if you are homeowner, a secured loan.
A 0% purchases credit card can let you pay for many of the key expenses that come with organising a wedding. The advantage of a 0% purchases credit card is that there is a much longer interest free period, so you can pay back the cost of your wedding over a longer period without racking up more debt than what you paid.
Many of the 0% purchases credit cards are aimed at people with a good credit score, and some offers go up to nearly two years.
However, some will consider less than perfect credit ratings, so be sure to do your research in advance, and do what you can to improve your current credit score.
In such cases, the credit card provider may simply reduce the length of the offer available to you and give you a lower credit limit.
If you're only looking to borrow a few thousand pounds, then a 0% purchases card could be a good option – if you want to borrow more, a personal loan is likely to be the best option for financing a wedding.
Many personal loans offer relatively low rates for borrowing around £5,000 to £10,000. Some loan providers cater to those with a bad credit score and try to match some standard high street lenders by offering competitive rates.
However, it all depends on how much you want to borrow, your income and what your credit report looks like.
For borrowing even higher amounts or if you think your credit score might stop you from getting a low rate personal loan, secured loans can be a useful option. However, these come with a stronger guidance warning, as to get a secured loan, you need to put up your property as security.
This means that you're more likely to get a loan even if you have a less than perfect credit score, but you do so at the risk of losing your property if you struggle to pay back the loan.
If you have bad credit and want to finance your wedding, read on to learn more about what you can do to improve your credit score.
Your credit score is based on your financial history, including loans and credit cards you've taken out, as well as utility and mobile phone bills you've paid.
If you have paid back your debts on time you are more likely to have a good credit score. If you have missed a payment or defaulted, then this will show up and contribute to you having a bad score.
Finding a wedding loan with bad credit is likely to be quite difficult, so it's worth investing some time improving your score before you begin applying for wedding loans.
Simple things you can do include paying off any debts you have in full and on time, and as a must, ensure you are registered on the electoral roll.
Unfortunately there is no such thing as getting a wedding loan with no credit check. All loan providers will carry out a credit check before deciding to approve or reject your wedding loan application.
Beware of any emails or letters you get saying you can get approved for a loan with no credit check. These are either scams or using misleading language to encourage you to apply for their loan.
It is worth remembering that applying for multiple loans in a short period of time can negatively impact your credit score.
Each time a credit check is made it shows up on your credit report, so if a loan provider is looking at your recent wedding loan application and sees there have been multiple credit checks recently, they are likely to think that you are desperate for credit and therefore more of a risk.
Once you have made some improvements to your credit score and have done the necessary research about the type of loan you want and can afford, then consider making your application.
Avoid rushing into any decisions, as a rejection will show up on your credit report, only making it even more difficult in the future when looking for the right wedding loan.