For every couple, their wedding day is the biggest day of their life. So every couple dreams of the best wedding hall, food, decor, jewelry, photographers, band, wedding dresses, etc. at their wedding so that their wedding day will be unforgettable, but your wedding day can also be most lavish and costly one, as every wedding feature comes with an expensive cost. Weddings can be incredibly expensive. The wedding is the one event, where people do not hesitate to spend on, and taking a loan might seem like the possible option. People with good credit have a number of resources available to easily cover their wedding expenses, but people with bad credit have to face particular challenges in getting a wedding loan as these loans are unsecured and have high market interest rates. But by understanding everything about wedding loan and knowing your options, you can choose right wedding loan for paying off your wedding bills.
Understanding wedding loan:
Wedding loans are part of the personal loan industry, there is no specific banking term known as wedding loans, you can take a personal loan to cover any expenses of the wedding and a variety of options are available, from which you can choose, but for every loan, bad credit will make it more expensive and difficult. Personal loans can be used for any purpose. You don’t need to mention how you will use the loan amount. Most NBFCs and Banks offer personal loans for the wedding. The only disadvantage of taking a personal loan for a wedding is that it has higher than an average interest rate. It is easy to apply for the wedding or personal loan. The loan amount will depend on your ability to repay and can range from a few thousands to few lakhs. You can check your eligibility online before applying to check whether you qualify for a loan or not. You can apply for wedding loan online or visit a branch for details. The documents required for taking a wedding loan are ID proof, Bank statements, address proof, Payslips. The documentation required will vary with each bank and depends on your loan requirement, profession, and income.
Improving your Credit:
The first step in getting a wedding loan with bad credit is to improve your credit score. A score of 750+ is considered as a good credit score to apply for wedding loans. The higher your score, the better are your chances of getting your wedding loan application being approved.
First of all, lenders check your credit score to judge if you can be trusted to fulfill your debt obligations. If you have a bad score, it is good to improve it before applying for a wedding loan in order to avoid rejection. Next, lenders will look at your credit report to check your track record of making repayments. If you have many skipped or late payments in your report or you have one or more default accounts, it shows the lender that you have not been a responsible borrower in the past. There is no quick fix for a bad credit history, but you can improve it quickly by checking, documenting and fixing any mistakes in the negative information. It will take time and a good financial record of paying off debts to improve your credit score.
It will take almost 2-12 months to improve your credit report, but if your wedding is soon and you are not qualified for an unsecured personal loan, lenders will offer you a wedding loan, but you need to keep security in the form of collateral, it can be jewelry, property, a non-retirement investment account or anything of value.
If someone with an excellent credit score and credit history cosigns the wedding loan application with you, the effects of your bad credit can be overcome and you can get a loan.If you pay this loan on time, it will help you to improve your credit history.
You can get a wedding loan, even if you have a bad credit but you need to pay a higher interest rate in order to offset the lender’s risk. Bad credit might also prevent you from qualifying for a higher loan amount.