We all know that weddings can, well, stretch your budget rather quickly. In fact, 61% of couples are surprised by how much their wedding ends up costing and as many as 82% of couples go over their budget. On average, the bride and groom pay over half of wedding expenses themselves and when you consider the average wedding costs $29,000, that’s no small expense. Even a small, intimate, DIY wedding can cost a lot more than expected. Feeding loved ones can be pricey! This morning we’re sharing some wedding financing options through Promise Financial.
View this feature – photo by Kelsea Holder
For most other major purchases you make throughout your life, such as education, a car, or a mortgage, financing is offered, but when it comes to weddings, many couples end up maxing their credit cards to cover the bills, since they are usually expected to be paid in full before the wedding. Promise Financial launched in 2015 as the first lending platform focused exclusively on weddings. Similar to other forms of financing, wedding loans allow you to pay over time. Loans through Promise Financial are funded directly to your bank account and can be used to cover a range of expenses, including wedding loans, honeymoon loans, and engagement ring financing. You can borrow from $3,000 to $35,000, rates are often more competitive than credit cards, and you repay your loan with a fixed monthly payment over 3 years. Currently, Promise Financial requires a minimum FICO Score of 660 and has APRs starting at 5.89% for borrowers with excellent credit.
While “wedding loans” are a new concept, many people already finance their wedding
with credit cards, which can have very high interest rates. Promise Financial suggests wedding loans for engaged couples looking to pay over time that have a significant amount of expenses they wish to finance, such as $3000 or more. Wedding loans often have more competitive rates, more transparent fees, fixed repayment schedules, and can help build a strong credit history with timely repayments. The average wedding costs $25,000 to $30,000, so a lower interest rate can translate into significant savings, for a couple who is financing much of that expense through credit cards. Promise Financial suggests credit cards for engaged couples that are financing a small amount of expenses and do not plan to carry the loan balance for a more than a few months.
If you’re not even sure how to set a budget for your wedding, check out Promise Financial’s budget tracker to help you set a realistic budget that you can stick to based on your finances. Don’t guesstimate and hope for the best. ;) Having a plan from the start will lay the foundation for a stress-free engagement.
All loans on the Promise Financial platform are originated by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC and Equal Housing Lender. The Annual Percentage Rate (APR) on loans through the Promise Financial platform ranges from 5.89% to 29.48%. The APR offered to you may be higher than the lowest rate of 5.89% depending on your credit score, loan amount, application details, and credit history. All loans are subject to credit review and approval.