You can use a personal loan to pay for a wedding or any wedding-related cost, before or after your wedding. You can use a personal loan for almost any purpose, including covering the cost of your wedding.

The average cost of a wedding in the United States was $30,000 in 2022, according to a study by The Knot. Some couples cover those costs by taking out a personal loan, which is a lump sum of financing that you repay over time. However, this strategy for funding a wedding has upsides and downsides.

What Can a Wedding Loan Be Used for?

A wedding loan is a personal loan that you use for wedding costs. You can get a personal loan from a bank, credit union, or online lender.

Personal loans are flexible and can be used for almost any purpose, so they can be a good option to finance your wedding. Many couples don’t cover the entire cost of their wedding themselves, according to wedding website Zola. Instead, they rely on credit cards, gift registries, or personal loans in addition to their own savings.

You can use a personal loan to cover any cost associated with a wedding. These include (with average 2022 costs, according to The Knot):

• Wedding dress ($1,900)
• Wedding reception/venue ($11,200)
• Engagement rings and wedding rings ($5,800)
• Live band ($3,900)
• Photographer ($2,600)
• Florist ($2,400)
• Catering ($75 per person)
• Wedding planner ($1,900)

How Much Can You Borrow with a Wedding Loan? 

The maximum amount you can borrow for a personal loan depends on a variety of factors, including the lender’s limits and what you can qualify for with your credit score and income. The smallest loans that most lenders will consider are for around $1,000, and many won’t lend more than $50,000 in normal circumstances. A few lenders may lend up to $100,000.

In general, you should get the smallest loan that meets your needs, because personal loans in any amount have interest costs and are included in your debt. You will pay interest on the loan as you pay it back, so a larger loan will be more expensive in the long run.

How to Qualify for a Wedding Loan

• Credit score: Lenders have different criteria for qualifying borrowers for a personal loan. A better credit score typically results in lower interest rates. In many cases, you can be approved for the best interest rates with a score of 640 or above.
• Income: Some lenders will ask you to prove you are employed and provide proof of your income to make sure you can repay the loan.
• Age: You’ll need to be 18 or older to qualify for a personal loan.

Pros and Cons of Wedding Loans

Pros Explained

• Convenience: With a personal loan, you receive the funds in a lump sum so you will have money upfront to pay the vendors you need. Personal loans can often be funded within a few business days. In some cases, you can receive your money the same day that you apply.
• Flexibility: You can use the loan for almost any expense for a wedding. There are no restrictions on whether you use the money for a venue, flowers, or any other cost.
• Low interest rates and fees: Especially compared to credit cards, personal loans tend to offer much lower interest rates, which will save you money in the long term. They generally do not charge for early repayment.
  

Cons Explained

• Interest: Although they can save you more than using a credit card, personal loans cost more than paying in cash because they have interest. Even with low interest, they can add a substantial amount to your total cost. For example, if you take out a five-year loan for $15,000 at a 10% interest rate, you’ll pay more than $4,000 in total interest. 
• Debt: A personal loan will add to your total debt, which can affect your credit score. It can also affect your debt-to-income (DTI) ratio, which may reduce your chances for being approved for other loans like a mortgage or a car loan.
• Temptation to spend: When you have a lump sum of money, you may be tempted to spend it all when you don’t need to. Remember that the money is a loan and not cash.
  

Alternatives to Cover Wedding Costs

Many couples receive financial help from their families to cover the cost of their wedding. This is a great way to finance your wedding, of course, because family members tend to offer low interest rates and generous loan terms.

If you have not saved enough to pay for your wedding and you don’t want to rely on family members, you have a few options in addition to a personal loan. First, if you own a home and have equity, you can take out a home equity loan or a home equity line of credit (HELOC). These are secured loans that use your home equity as collateral. These loans tend to have lower interest rates than unsecured personal loans.

A credit card is another option to pay for wedding expenses, but in general, it is not ideal. You could get into financial trouble if you cannot pay off the balances. Credit cards have high interest rates that can add to the costs quickly.

How Do People Use Personal Loans?

daftarlapak303.commissioned a national survey of 962 U.S. adults between Aug. 14, 2023, to Sept. 15, 2023, who had taken out a personal loan to learn how they used their loan proceeds and how they might use future personal loans. Debt consolidation was the most common reason people borrowed money, followed by home improvement and other large expenditures.

The Bottom Line

If you need to finance a wedding, a personal loan can be a good option. For most borrowers, a personal loan will have a lower interest rate than a credit card, and you can pay it back in regular monthly installments.

Of course, a better option is to save up for your wedding and pay in cash if possible, because then you’ll pay no interest at all.