Wedding loans: financing your wedding and honeymoon

By Miranda Marquit

Reviewed by Kimberly Rotter

Apr 12, 2023 - Updated May 29, 2023

Read time: 4 min

  • Wedding loans can make it easier to plan and pay for your big day.

  • A wedding loan is a personal loan used for wedding and honeymoon costs.

  • A wedding loan might have a lower interest rate than a credit card.

Bet you can’t say “wedding” without smiling. (You just tried it, didn’t you?) But figuring out how you’ll pay for this happy day can be stressful. 

Are you leaning toward a big celebration that involves family and friends? Or going with an intimate vibe? Either way, knowing how you’ll cover the expense can lower the stress of planning and allow you to enjoy this special day even more. A wedding loan can help you avoid dipping into your savings or relying on a high-interest credit card.

What is a wedding loan?

A wedding loan is a type of personal loan aimed at helping you cover wedding costs. In general, a wedding loan is unsecured, meaning it’s not tied to an asset like your car or your home. You’ll qualify based on your creditworthiness. 

When you get a personal loan, you get the money as a lump sum and then repay the loan in equal payments over a set period of time. Personal loans, including wedding loans, typically range from around $5,000 to around $50,000, but you might find smaller or bigger options. The repayment period is generally 2 to 5 years.

What can you use a wedding loan for?

A wedding loan can often cover most of the expenses related to getting hitched, including:

  • Venue fees (including deposits)

  • Wedding apparel (including the dress and/or tuxedo)

  • Music (live band or DJ)

  • Decorations

  • Flowers

  • Party favors for guests

  • Fee for the officiant

  • Wedding rings

  • Save-the-date announcements and invitations (including RSVP cards)

  • Costs associated with setting up a personalized wedding website

  • Food and catering costs (including the wedding cake)

  • Fees for a wedding or event planner

  • Rehearsal dinner

  • Honeymoon

Your total cost depends on what services you use, the venue, and how many guests attend. No matter your plans for the big day, a wedding loan can help you put together an event to remember. 

Is it a good idea to borrow money for a wedding?

Your personal goals and financial resources will dictate whether it’s a good idea to borrow money for a wedding. Here are some of the potential advantages of using a personal loan to pay for your wedding:

  • Affordable payments can help you manage cash flow without the need to deplete your savings.

  • A lump sum gives you flexibility and ready cash for planning.

  • A wedding loan typically has a lower interest rate than a credit card.

How much can you borrow for a wedding?

Many lenders offer loans of up to $50,000 to cover wedding and honeymoon expenses. The exact amount you can borrow will depend on your credit score, your income, and how much other debt you have. You may be able to get enough funding to cover all of your wedding costs. 

If you don’t use all of the money, you might be able to repay it early. This is a good reason to make sure your lender doesn’t charge a prepayment penalty.

What to look for in a wedding loan

Here are some important things to consider when evaluating a wedding loan:

  • Interest rate: The interest rate is the cost to borrow money. The lower it is, the less interest you’ll pay. Get the best interest rate possible, based on your credit score.

  • Loan term: This is the repayment period for paying back your loan. Many personal loans allow you to choose a term between 2 and 5 years. Longer terms have a lower monthly payment, but shorter terms could save you money in interest charges. Look for a repayment schedule that works for your budget.

  • Prepayment penalty: This is a fee some lenders charge if you pay off your loan ahead of schedule. Avoid loans with prepayment penalties, even if you don’t expect to pay off your loan early. If it turns out that you can pay off your loan early, you don’t want it to cost you.

  • Funding speed: In some cases, you might be able to get your money as soon as the next business day after you apply. With the money in your bank account, you can start planning.

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When a wedding loan might not be a good idea

A wedding loan isn’t the right choice for everyone. Before you get a wedding loan, consider whether the following situations might apply to you:

  • Paying off the loan would put excessive strain on your finances.

  • Your loan might lead you to delay or cancel other important financial goals.

If you can handle it without putting other goals at risk and the payments are manageable, a wedding loan can be a good way to get the money you need to cover your wedding and honeymoon expenses.

Alternatives to a wedding loan

If you decide a wedding loan isn’t the right move for you, there are other ways to manage your costs. Here are some strategies to consider:

  • Create a wedding savings account and set money aside each month.

  • If you have a rewards card or a card that has a special 0% intro rate on purchases, you can use that to pay for wedding expenses and repay them over time.

  • Ask family and friends to help with costs, including setting up a crowdfunding page.

  • Use a home equity loan or HELOC to cover your wedding costs.

  • Consider reducing your wedding budget.

It’s also possible to use a combination of strategies to cover your costs. You might be able to use some of your savings and get help from family, and then use a wedding loan to make up the difference.

Author - Miranda Marquit

Miranda Marquit is an award-winning freelance writer and podcaster who has covered various financial topics since 2006. Her work has appeared in numerous media outlets, and she is frequently asked to host workshops and appear on panels on topics related to financial wellness. She is the co-host of the Money Talks News podcast and a consumer finance advocate and spokesperson for moving hub HireAHelper.

kim rotter 2022 2

Kimberly is Achieve’s senior editor. She is a financial counselor accredited by the Association for Financial Counseling & Planning Education®, and a mortgage expert for The Motley Fool. She owns and manages a 350-writer content agency.

Frequently asked questions

A wedding loan is usually an unsecured personal loan. You use the funds to pay for costs related to your wedding.

Wedding loans are typically repaid in two to five years.

There are a number of strategies people use to pay for weddings, including loans, savings, and help from family and friends.

No, you cannot pay your credit card bill directly with a personal loan. Personal loans are typically used to cover large purchases or consolidate credit card debt but they cannot be used to pay off credit cards directly. If you need to pay off credit card debt, you can either pay it off with money from your own bank account, or through a money order. 

There are several advantages of a personal loan over credit card debt. It allows you a fixed payment plan that makes it easier to budget. It often has a lower interest rate which can save you money. If you stick to the payment schedule and don’t run up new debt, you can pay off your debt faster.

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