When planning for your big day the nuptials can come with many expenses, from flowers and catering to the venue, wedding dress and the engagement ring. There’s also the honeymoon, another big expense, but you want to make it memorable. Saving up isn’t part of everyone’s plans and a wedding loan for expenses will often make more sense for some so that they can start their life together sooner. In many cases, a wedding loan is a more affordable option since you would make monthly payments until paid off as opposed to saving up.
An unsecured personal loan for weddings can help by making your finances more affordable with terms you and your spouse can agree to before tying the knot. Many wedding loans will make you say I do with rates that can allow you to have the ceremony you dream of. Before being joined together in holy matrimony, consider how a wedding loan can provide so that you are able to begin your marriage without regrets and borrow what you need.
Wedding Loans Canada
A wedding loan in Canada is a type of personal loan or installment loan that involves monthly scheduled payments according to the terms you have agreed to and provides a manageable way to afford the expense and can be a better choice than the accrued interest charges of credit cards. While some might argue that using a credit card would have even lower costs, it is likely to cost you much more over the term if you are only paying the minimum each month, or close to it. Finding a Canada wedding loan is easier than many assume, especially online.
What if I use my Credit Card?
Since credit cards usually have a minimum payment of $10 or 3%, whichever is greater, it would be much more costly than a loan. If you charged $10,000 to your credit card, your minimum monthly payments would be $300, which would take nearly 23 years to payoff and cost you a total of about $9,799 in interest over the term. Comparatively, a personal installment loan for $10,000 on a five year term with an 18% interest rate would cost about $254 per month and about $5,236 in interest.
The difference between using a credit card versus a personal loan being about $4,563 this makes a personal loan for a wedding an obvious winner and that much better of an option. Also, it’s almost $50 less per month for payments.
It’s worth noting that if you increased that minimum credit card payment by 10% (or $30) more than your minimum payment each month, you would pay off your credit card balance 12 years and 10 months sooner and it would help you save $3,357.37 in interest. But clearly the loan is the better choice, it’s just interesting to see how much you actually pay in interest with credit cards. Most credit cards use compound interest, which is interest that has been added to your principal (original) balance at the end of every day, where most loans usually use simple interest, which is calculated from the remaining principal owed on your loan, leaving you to pay a set monthly amount plus interest. But a personal loan for a wedding is still the better choice.
Can I Get a Wedding Loan with Bad Credit?
Even with bad credit wedding loans are still a possibility for many, so long as you meet the basic criteria in terms of being eligible. From being a Canadian citizen of legal age to having an active bank account and regular income being some of the criteria. Many lenders will expect income from employment and a minimum monthly income amount, along with not seeing evidence of poor payment history or lots of other debt.
Something old, Something new, Something borrowed…
If you have saved up to cover most of your wedding and need the funds more for a honeymoon then a travel loan might be what you’re looking for. Borrowing can allow you to do things when you don’t have the funds or care to wait and save up. Everyone’s needs and urgency is different and sometimes a personal loan is the right choice for them.