Wedding Loans

Tying the knot soon? Congratulations! If you're reading this, chances are you're wondering how to pay for a ceremony, reception, honeymoon and so on. A wedding loan is one way to spread costs over time — but there are a few things to know before saying “I do” to your lender. Read our guide to find out how wedding loans work and if they’re a good idea.

What is a wedding loan?

A wedding loan is simply a personal loan used for wedding expenses. It gives you a lump sum of money which you pay back over time. You make a set number of monthly payments to repay the amount you borrowed, plus interest. Interest is what lenders charge you for borrowing — it’s calculated as a percentage of what you owe.

A personal loan is also called an unsecured loan because (unlike a secured loan) it isn’t tied to your house or car.

How many couples take out a loan for their wedding?

Around 12% of people in the UK use a loan to help pay for their wedding, according to a 2022 study by Lowell. Another 35% use a credit card or overdraft. Those who borrow have an average wedding debt of £3,958. But remember, what’s “normal” or “average” might not be right for you. Personal finance is just that — personal.

Is it a good idea to finance a wedding?

It depends on your circumstances. For some people, wedding finance is an affordable way to have the celebration they want sooner rather than later. For others, it’s better to save up or spend less on their big day.

It might not feel romantic, but it’s important to have an honest and open chat with your partner before taking out a wedding loan.
Here are some useful questions to ask:

• Can we afford it? Make sure there’s plenty of room in your monthly budget for wedding loan repayments. Consider how your expenses and income might change once you’re married.
• Can we save more? Around 60% of people in the UK use savings on their wedding (some use credit as well). Even if your savings won’t cover every cost, you may be able to get a smaller loan.
• Can we have a cheaper wedding? It’s your big day so of course you want to make it special. But see if you can cut costs without sacrificing too much. Use your money in a way that matters to you and your partner — be wary of overspending just to impress guests or people on Instagram.
• How will wedding finance affect our future? A wedding loan may affect your ability to get a mortgage or start a family for example. Make sure it won’t stop you having the life you want with your new spouse.
• Who’ll take out the wedding loan? Getting a joint wedding loan will create a financial association on your credit report (your reports may already be linked if you share finances). If you apply alone your lender will hold you solely responsible for the repayments — even if your partner says they’ll chip in.

What are the pros and cons of wedding loans?

The advantages of a wedding loan can include:

• Quick access to money – meaning you can tie the knot sooner or start booking wedding vendors earlier (which may help you get better deals)
• Long-term borrowing – wedding loans can be more suitable for the long term than credit cards and overdrafts
• Predictable payment schedule – payments are the same each month and you’ll have a clear idea of when the loan will be paid off

The disadvantages of wedding loans can include:

• Increased cost – paying interest and fees will make your wedding more expensive overall
• Early repayment fees – you’ll normally be charged a fee for paying off your loan sooner than you agreed
• Risk – any late payments will lower your credit score and may lead to fines, defaults and even legal action
• Impact on your score – applying for a loan lowers your credit score, although it should improve over time if you take care of it

What are the alternatives to a wedding loan?

If you can, it’s a good idea to save up money for your wedding. You could also consider getting help from family and friends. Some couples ask for contributions to their honeymoon instead of gifts to offset the costs of a wedding.

Looking for finance? A 0% purchase credit card is one alternative to a wedding loan. This type of card offers an interest-free period. Try to clear the balance before the period ends or you’ll start paying an expensive rate. Cards give you more flexibility with your monthly payments than loans, but it’s important to manage your card responsibly.

Another flexible option is an arranged overdraft. This lets you borrow directly from your bank account. You’ll pay interest or fees until you pay off the overdraft. Make sure your bank agrees to the overdraft before you start using it.

How much does the average wedding cost?

The average wedding in the UK costs £19,184, according to a 2023 Bridebook survey. Or just over £24,000 if you include an engagement ring and the honeymoon. Here are a few ways you may be able to reduce the cost of your wedding:

• Choose a cheaper location (London is pricey, unsurprisingly!)
• Get hitched in the winter or mid-week
• Invite fewer guests
• Shop around for cheaper vendors

Want to save on the cost of borrowing? Look for a low-interest loan with Experian. Searching is free, takes a few minutes and won’t affect your score. We’ll also calculate your chances of approval so you can apply with confidence.

What is the most I can borrow for a wedding loan?

Wedding loans tend to offer between £1,000 and £50,000. The amount you can borrow depends on things like your credit score and how much you can afford. Lenders are more likely to approve you for a bigger loan if you earn more, have lower monthly expenses, and a higher score.

How much will a wedding loan cost me?

The cost of a wedding loan depends on a few things, including:

• Annual Percentage Rate (APR). A lower APR means the loan costs less per year. Bigger loans tend to have a lower APR — but don’t borrow more than you need.
• Loan term. Borrowing for longer means you’ll pay more interest overall. Even a low APR loan can be more expensive if you have it for longer.
• Fees. You may be charged for things like setting up an account, paying your loan off early, or missing a payment.

Do I have to use the whole loan to pay for my wedding?

No, you can spend as much or as little of your loan as you like. Also, you can use a personal loan on just about anything (it doesn’t have to be your wedding). It’s safer to borrow only what you need — if you do have money left over, keep it for repayments instead of spending it on unplanned purchases.

Can I get a wedding loan with bad credit?

Yes, it’s possible. You may be more likely to get approved for a bad credit loan as these are designed for people with low credit scores. You may have to accept a lower amount and higher rate. Another option is a guarantor loan — a guarantor is someone (often a parent) who agrees to repay the loan if you can’t. It’s best to steer clear of payday loans as they’re very expensive and not suitable for long-term borrowing.

It’s always worth seeing if you can improve your score to get better deals. Also, check your eligibility before applying, as being refused credit damages your score.

How do I apply for a wedding loan?

Applying for a wedding loan can usually be done online or over the phone. Lenders ask for various information like your address, contact details, date of birth, employment details, monthly income and expenses.

Experian helps you apply with confidence. Look for the best deals with us and check your chances of approval. Searching loans with us is free, takes a few minutes and won’t affect your credit score.