Opting For A Personal Loan
If someone says that she's getting a wedding loan, chances are, she's referring to a personal loan. If you don't have collateral — like a home — this may be a strong option for you. Most financial institutions, including local and nationwide banks, credit unions, and even some online banks, offer personal loans. To help determine the interest rate that you ultimately land, lenders will use your credit history. The higher your credit score, the lower your interest rate.
While rates for personal loans are fairly low, they are more costly than what you will pay for a mortgage or a home equity line of credit. That's because a personal loan is unsecured — meaning that there is no collateral (like your home) held in exchange for lending you the funds.
While interest rates on personal loans run in the mid- to high-single digits, they're still substantially lower than what you'd pay by charging your wedding expenses on a credit card. This explains why in just about every situation, it's better to get a personal loan than to put the charges on your plastic.
You may also want to consider peer-to-peer lenders such as Prosper or Lending Club. These lenders often offer lower interest rates than a bank. Services like Credit Sesame can help you sort easily through various loan options by matching your credit profile with the lowest cost loans that suit your needs.
Financing From Friends And Family
Many years ago, asking for cash gifts to help pay for your dream day was considered taboo. These days, it's increasingly acceptable to ask for cash in lieu of a wedding gift. In fact, there are several online services such as OurWishingWell.com that allow couples to set up a registry where guests can easily gift cash.
Not comfortable with asking directly for cash? Consider crowdfunding your wedding (heck — people are using it for everything!). A new site, Crowdtilt, recently launched a crowdfunding site that allows you to leverage your social network to fund just about anything, including weddings. And there are other options like GoFundMe.com which allow friends and family pay your way to your big day.
And who wants to start their marriage off on the wrong foot?