Should you use a personal loan to pay wedding expenses?

But should you use a personal loan to pay for wedding expenses? A wedding is a major milestone that lives in a sort of limbo state between a “want” and a “need.” Is it responsible to borrow money for a party that you can’t presently afford?

As with most major decisions, the unsatisfying answer is “it depends.” It’s not a good practice to spend money you don’t have. But there are exceptions. Here’s what you need to know about using a personal loan to pay for a wedding.

What is a personal loan for wedding expenses?

Have you seen financial institutions advertising loans for wedding expenses? Many have dedicated landing pages for wedding loans.

For the most part, these are arbitrary terms and landing pages—a wedding loan is no different than a standard personal loan. The lender is simply marketing toward those looking to finance their wedding. A personal loan can be used for nearly any expense, from moving and relocation costs to travel.

When you open your loan, you’ll be immediately enrolled in an installment plan of equal monthly payments until your loan (plus interest) is repaid. The faster you pay off your loan, the less interest you’ll pay. Just be sure there are no ancillary personal loan costs like a prepayment fee.

Should you use a personal loan to pay for wedding expenses?

A wedding is one of the most important events in life. If you can afford a horse-drawn carriage and the releasing of doves, go for it. But understand that spending money you don’t have on a wedding isn’t an emergency expense—and it won’t increase your net wealth in the long run.

All to say, if you’re intentionally going into debt, you should have a manageable way out. Consider the following before opening a personal loan to pay for your wedding expenses.

Are your plans too elaborate?

Wedding website The Knot conducted a survey finding that the average wedding price in the U.S. In 2024 was $33,000. That price tag is not necessary—but it certainly explains the fairytale wedding photos you see garnering hearts on Instagram.

Lowering your out-of-pocket doesn’t mean lowering your standard. Ask yourself: Does your guest list need to be that long? Is that A5 wagyu flight a necessary appetizer? Is a destination wedding in Lake Como non-negotiable?

In short, be honest as to whether the money you spend is to celebrate the end of your engagement and not simply to boost your social media engagement.

Can you comfortably pay off your loan without straining your monthly budget?

This is a question everyone should ask before opening a loan, regardless of its intended use.

If you can’t afford another monthly payment, don’t open a personal loan. Beginning marriage with unmanageable debt is unwise. Either wait until you’ve saved more money or arrange a ceremony that you can afford without a loan.

Even if you can technically afford the monthly installments of a personal loan, consider whether it will prevent you from contributing to your savings. You want some wiggle room in the event that you experience hardship (like a layoff) or emergency vehicle maintenance.

Will your debt be repaid before the next major life event?

When you take out a loan, you’re often on the hook for monthly payments for several years. That can tighten your budget for the foreseeable future—which means other life milestones, such as buying a home or having a child, may need to be put on hold until you can reasonably afford them.

Before you decide on a wedding that warrants a loan, consider if it’s worth preserving your financial margin for future goals.

Do you have a strong credit profile?

The best personal loan rates are reserved for those with good and excellent credit. If you’ve got a credit score below 670 (considered “good” by FICO), you’ll likely be subject to much higher interest rates which can effectively skyrocket the cost of your wedding.

For example, if you’re approved for a four-year loan of $30,000, here’s an estimate of what it would cost at two different rates (unless you pay it off early):

• With a 7% APR: $34,482.59 all-in. That’s $4,482.59 in interest.
• With a 17% APR: $41,551.26 all-in. That’s $11,551.26 in interest.

Factor the interest you’ll pay for your wedding loan into your expenses when making a budget.

Pros and cons of using a personal loan to pay wedding expenses

Alternatives to personal loans for wedding expenses 

A personal loan isn’t the only way to fund a wedding. Depending on your situation, you may have several more levers to pull, including:

• Low-APR credit cards:  It’s usually not a good idea to finance a large expense (like a wedding) on a credit card due to their often-exorbitant interest rates. However, some credit cards offer an interest-free window upon account opening (up to 24 months, in some cases). If your wedding expenses are low enough to be placed on a credit card or two, this can be a great money-saving tactic. Just be sure you can pay off your balance before interest kicks in.
• Home equity loan:  If you own a property, you may be able to borrow from the equity you’ve built to fund your wedding. Interest rates are often lower because the loan is secured by your home. But if you default on your loan, the lender may take your property.
• Request cash as your wedding present:  Instead of requesting items on a registry, you may choose to ask for money as your wedding gift. This can go a long way toward minimizing your out-of-pocket.

You may also solicit your family for a loan to skip the formalities of a credit check, APR, etc.

How to get a good rate on a personal loan for wedding expenses

To get the best rates on a wedding loan, make yourself as trustworthy a borrower as you can. There are a few steps you can take to make yourself less risky in the eyes of lenders. For example:

• Always make on-time payments: The best way to cultivate a good credit score is to make at least the minimum payment each month for your current loans.
• Lower your credit utilization: High credit card balances can singlehandedly tank your credit score. The good news is that your credit can bounce back quickly when you pay them down. Experts typically recommend keeping your credit utilization below 30%.
• Don’t apply for lots of other accounts: If you’ve got your eye on a personal loan, the best practice is not to open, say, several credit cards first. This can make you look desperate for money which lenders may consider a red flag.
• Lower your debt-to-income ratio: Your DTI is the percentage of your income that must be used to make payments on your current debt. Keep your DTI below 40% for the best chance at good rates.

Also remember to “rate shop” for the best loan terms. Many lenders allow you to prequalify for a loan, allowing you to see your proposed APR and term length. You can use this technique to see which financial institution will give you the best deal.

The takeaway

You may legitimately need a personal loan to pay for a wedding. Taking out a loan for the joyous occasion isn’t intrinsically a bad move. The key is to make sure you’re not using a personal loan to spend money that you’ll have a hard time paying back. That can put strain on both your finances and your relationship.

Frequently asked questions