Published on May 16th, 2022
Using personal loans for wedding expenses is a great way to get your big day off to a happy start. But, if you have a bad credit score, it can be tough to get approved. Here are a few tips for getting your wedding loan approved with a bad credit score.
Do What You Can To Improve Your Score, Even If Only By A Little Bit
A few small changes can make a big difference and help you get approved for a wedding loan, even if your credit score is low. Your FICO score, the score the majority of lenders use, is calculated from five factors, each with its own weight:
- Number of on-time payments (35%)
- The amount owed on credit cards and other revolving debt (30%)
- Length of credit history (15%)
- Type of credit (10%)
- New credit applications (10%)
If you can improve just one factor, it will significantly impact your score and improve your chances of getting approved – so don’t be afraid to make minor improvements.
There are many resources available to help you improve your score, including online calculators and free resources from the Credit Union National Association.
Offer Collateral
If you can’t improve your credit score yourself, you might need to offer collateral to a lender to get approved for a wedding loan.
Lenders will want to see that you have enough resources to cover the debt if you don’t pay it back on time, and offering some type of asset as collateral will help give the lender peace of mind that you’re serious about paying off your debts, even if your credit history has a few past mistakes.
Try A Local Bank Or Credit Union
Some lenders are more likely to approve a wedding loan than others, and you might have better luck with a local bank or credit union than with a large national lender, especially if you already have a pre-existing relationship with the lender.
Community-based banks and credit unions have a vested interest in helping their customers succeed, so they are more likely to approve a loan even if the applicant has a low credit score.
Ask Your Friends And Family For A Loan
Many couples get their wedding loans from friends and family members, who are often willing to offer a financial contribution in order to help their loved ones celebrate.
Ask around – many people are happy to lend a helping hand when it comes time to buy a ring or plan an elaborate wedding.
What If None Of These Work?
Don’t give up hope – if you have a low credit score, there are still plenty of ways to get your dream wedding without borrowing money from a lender.
Talk to your friends and family about whether they know anyone willing to loan you money and see if they can help put together an acceptable financial proposal.
And remember: even if you don’t have perfect credit, there are still wedding loans available that will allow you to get married without worrying about money.
The Bottom Line
There are many ways to improve your chances of getting approved for a wedding loan, even if your credit score is low.
If you can’t improve your credit score, try talking to a local lender about collateral options or offering something valuable as security. And don’t be afraid to ask for help – there are lots of resources available to help you get the best possible loan for your wedding.
Feature Image: wikimedia
