Wedding loans

The most romantic day of your life can also be very expensive.

While some couples save up for their big day, or the bank of mum & dad steps in, you may be looking for alternate ways to finance your wedding.

Thankfully, there are a number of loans you can apply for, including personal loans.

What is a wedding loan?

A wedding loan is any form of credit that you use to finance your wedding. The most common type of wedding loan is a regular personal loan, but could also be a credit card, line of credit, a buy now pay later arrangement or even a loan from a family member or friend.

How can I finance my wedding?

If you're looking for a loan to pay for your wedding, there are a number of options to choose from. The best loan for you is one that will suit your budget and covers your upcoming expenses. These include:

• Personal loans. There are 2 types of personal loans: secured and unsecured. Secured loans generally have higher borrowing amounts and lower rates, but require an asset as collateral. An unsecured loan, meanwhile, has lower borrowing amounts and slightly higher rates, but does not require collateral. These loans don't come with restrictions on how you use the funds. You can use the loan to buy the dress, book a venue and even pay for your honeymoon. You can choose between a variable or fixed rate, and repay the loan between 1 and 7 years.
• Lines of credit. A line of credit is useful if you want credit on a continuous basis, as opposed to a lump sum. You can also opt for it if you're unsure if you will need to borrow money. A line of credit allows you to borrow up to a certain amount, as and when you need it. You will be charged interest on the amount borrowed, and not your entire credit limit. While convenient, interest can be higher for a line of credit compared to a personal loan.
• Credit cards. Depending on how much your credit limit is and what your upcoming expenses are, a credit card may be an option. You could look into a 0% p.a. purchase card or a 0% p.a. balance transfer card, depending on your circumstances. Note that interest will apply after the introductory period and that interest on credit cards is generally higher than on a loan.
• Buy now, pay later. Depending on what you need the finance for, this may be an option. Some purchases, such as airline tickets, may come with a buy now pay later option. This means that you can stagger your payment over a period of time without being charged interest. While it may not be a suitable option for all your expenses, more vendors are increasingly offering this option.
• Bad credit personal loans. If you have a few negative marks on your credit score, a bad credit personal loan may be an option. This can be either a secured personal loan, a guarantor personal loan, a low doc personal loan or a short or medium term personal loan. Short and medium term personal loans come with high fees and rates, so they work out to be expensive and these option should be a last resort.

What costs do I need to consider?

Whether it's a small ceremony or an all-out extravaganza, there are a number of items and services you will have to pay for. Some of these additions may cost more than you originally thought. In the table below are some of the expenses you can expect and their average costs, according to surveys by easyweddings.com.au¹ and truebride.com.au².

Note that these costs will differ based on where you live.

Consider the expenses below:

How can I compare wedding loans?

When you're comparing your loan options, there are a number of factors you need to think about.

• How much does the loan cost? Compare interest rates across a number of loans to find the most affordable loan. Apart from interest, you should also consider fees and the comparison rate. A loan could have low interest but high fees, which will increase the cost of your loan. Check the comparison rate, which includes interest and fees. This will give you an idea of how much the loan actually costs.
• Can I afford the loan? Once you've calculated how much the loan will cost you, you need to consider whether you can afford it. Check if your repayments fit comfortably within your budget.
• How much can I borrow? Each lender will have maximum and minimum lending amounts. Does the lender offer the amount you want? How much you can borrow will also depend on your ability to repay the loan and your credit profile.
• What's the loan term? The loan term is how long you have to repay the loan. Loan terms will affect your repayments. Shorter terms will mean higher monthly repayments in the short run. With a long term, you'll have smaller monthly repayments but the loan could cost you more on the whole. This is because you'll be paying interest for the entire time, the cost of which can add up.
• Am I eligible? Do you meet the lender's minimum requirements to qualify for the loan? This can include income requirements and your credit score. Your application could be rejected if you don't.
• What's the repayment schedule and is it flexible? Can the repayment schedule be tailored to suit your cash flow? Can you make free additional repayments to pay off the loan early, or will you face a penalty?

Pros and cons of wedding finance

Can I get a joint wedding loan?

A joint wedding loan is essentially a joint personal loan that you use to pay for a wedding. Both borrowers in a joint personal loan arrangement are equally responsible for loan repayments. This means that if one becomes unable to pay, the other must successfully meet the full loan repayments.

Applying for a joint wedding loan is a big decision for many couples (much like getting married!), so you may want to consider the following factors.

Can I get a wedding loan if I have bad credit?

If you have a poor credit history, it can make qualifying for a wedding loan more difficult. However, there are a number of personal loans that are specifically designed for people with a bad credit score. Prospective applicants for bad credit personal loans should be aware that these loans:

• Can be more expensive. Because you pose more of a risk to a lender as an applicant with a poor credit score, your lender will usually charge you a higher rate and/or fees than someone with a good credit score.
• Have shorter loan terms. You will often have a shorter period in which to repay your loan. While standard personal loans have terms from 1 to 7 years, bad credit personal loans generally have terms from 16 days to 1 year. However, some may have terms of 2 or 3 years.
• May require security. You may be required to provide asset security if you are applying for a bad credit wedding loan. Common security types include home equity, commercial property and vehicles. Asset security mitigates the risk posed to the lender by a bad credit applicant, as the lender can reclaim the loan funds by selling your property if you fail to meet your repayments.

Who can apply for a wedding loan?

Technically, anyone can apply for a personal loan to pay for someone's wedding – it doesn't necessarily need to be the betrothed couple themselves. Some parents, guardians or even siblings may wish to apply for a loan on behalf of the married couple in order to pay for, or help to pay for, their wedding.

Please be aware that in order for someone to qualify for a wedding loan for themselves, or on behalf of someone else, they must be:

• Aged 18 or over
• A citizen or permanent resident of Australia
• Employed/have a regular income (applicants who receive Centrelink payments may be able to qualify if Centrelink makes up less than 50% of their income)

How can I apply for a wedding loan?

🤔 Work out how much you need to borrow and what you can afford. You can use a personal loan calculator to help you.
🔎 Start comparing lenders and loan products. Don't forget to compare interest rates, fees and eligibility criteria. You can use the comparison table on this page.
✅ Select a lender. Click "Go to site" to be directed to the lender's page, or "More info" if you want to read about the lender.
🖨️ Organise and prepare the required documentation. This will make the application process easier.
📱 Apply. Most lenders have their applications online.

Why compare personal loans with Finder?

Addicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)

Rates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest.

Cash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, rennovating your home or heck just ready to let loose with the spending - we got you.

Frequently asked questions

• Can I start repaying the loan after the wedding?

  When you start to repay a loan will depend entirely on the type of finance that you opt for and your arrangement with the lender in question. Usually, you will be required to start making repayments on a loan within 30 days of taking the loan out.

• Is it possible to increase a wedding personal loan?

  This will depend on whether or not the personal loan you choose offers a redraw facility. If your wedding loan offers this feature and you're eligible for it then you can increase your loan amount. However, if you have an existing wedding loan and your lender doesn't offer a redraw facility, there are still other options you can take when you require further funding. For example, you can opt to refinance your personal loan.

Written by

Rebecca Pike

Senior writer

Rebecca Pike is Finder's senior writer for money. She joined Finder after almost four years writing for business publications in the mortgage and finance industry, including three years as editor of Mortgage Professional Australia. She regularly appears as a money expert on programs like Sunrise and Today, as well as across radio and newspapers. She also holds ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products. See full bio

Rebecca's expertise

Rebecca has written 201 Finder guides across topics including:

• Home loans
• Cost of living
• Budgeting