Unless you’re opting to use crowdfunding to get the finances in order, here are a few things you should keep in mind before you can pick the best personal loan for your (most probably) once in a lifetime wedding event. In the following section, we’ll go more in-depth about all the essentials you need to know and help you select the right one to pay off the venue, the reception, and even the honeymoon costs.
Prerequisites for Approval
If you want your wedding loans to be approved for bad credit, you must first meet the minimum credit score requirements.
Namely, every lender has its own set of criteria for accepting potential borrowers. Most often, these include factors such as your income, credit score, and debt-to-income ratio.
Next, you should make sure that your lender allows loans for your intended purpose; in your case — a wedding. Otherwise, you’ll get rejected by default, despite meeting the other criteria listed above.
For instance, some lenders only allow personal loans for debt consolidation, so be sure to check some bad credit wedding loans reviews before making your application.
Annual Percentage Rate (APR)
In short, the annual percentage rate is your loan’s base interest rate plus any additional costs rendered over a yearly percentage.
As such, the APR will indicate just how much your loan will cost when all expenses are taken into account. This is why APR is often used to compare “prices” between different lenders.
Wedding Loan Fees
When your credit score is far from perfect, you need to watch out for any additional fees that might increase the cost of your loan. For instance, some lenders charge an origination fee — a one-time, upfront fee for processing a loan.
More often than not, the cost is around 1% to 10% of the loan amount and it is typically deducted from your loan proceeds by your lender.
In addition to that, some lenders may even charge you a repayment fee if you pay off your debt faster than intended as they expect to be paid interest for the whole duration of the loan.
Consequently, the costs of your wedding financing could be calculated as a percentage of your payoff balance, a fixed rate, or the remaining interest you would have owed.
And seeing how the average bridal gown in the US costs around $1,600, every penny counts. So, make sure you don’t lose money on any unnecessary fees.
A loan term refers to the period during which you have to repay the loan. Usually, personal loans such as a wedding loan are available with terms ranging from 12 to 60 months.
However, keep in mind that the longer the term, the more you’ll pay back due to the interest rate; don’t get fooled by the cheaper monthly payments.
When browsing through wedding loans for bad credit reviews, taking a closer look at a company’s customer service is never a bad idea. Especially if you prefer in-person to online help.