Can You Use a Personal Loan for a Wedding?

Picture this: a young couple have just gotten engaged, and it’s time to begin planning their dream wedding. They spend hours discussing the details—from the perfect venue all the way down to just the right flowers. They want their special day to reflect their love and commitment to each other, of course, but they're worried about the financial strain it may cause. Then they wonder, "Could we use a personal loan for wedding expenses?"

You can, indeed. And since the average wedding cost in 2023 surged to almost $30,000, it’s an option many might consider.

However, as with other loan types, selecting the best wedding loans will take some careful consideration. If you’re like our happy couple and need to cover some big wedding costs, a personal loan might be a good solution to help bring your wedding dreams to life. 

Using a personal loan for wedding expenses

A personal loan is a versatile financial tool that can be used for a wide range of purposes, and financing a wedding is one of them. Whether couples need to cover the entire event or specific elements like the venue, catering or even the honeymoon, wedding loans can provide the funding. They allow people to have the wedding they've always envisioned without compromising on their dreams. 

Secured and unsecured personal loans

When considering personal loans, it's important to understand the difference between secured loans and unsecured loans. Secured personal loans require collateral, such as a vehicle or property, which the lender can claim if you fail to repay the loan. On the other hand, unsecured personal loans don't require collateral and are based solely on your creditworthiness. 

For wedding expenses, and many major life events, TD Bank offers unsecured personal loans. They offer several advantages that make them an option for financing your special day. 

  1. Lower interest rate compared to credit cards
    Compared to using credit cards to finance your wedding, personal loans may offer lower interest rates. This means you might spend less on interest charges and have more manageable monthly payments

  2. Quick approval and fast funding
    When you need money quickly, personal loans provide a straightforward and often speedy solution. The application process is streamlined and, once approved, funds can be disbursed within a short period—sometimes as little as one business day

  1. Ability to borrow higher amounts
    The costs of a wedding can add up quickly—especially if you want to create a truly memorable experience. Personal loans may allow you to borrow higher amounts compared to credit cards or other financing options. This flexibility could potentially help you obtain the necessary funds to cover all your wedding expenses

How to get a personal loan for wedding expenses

If you've decided to borrow money to help finance your wedding, there are some preliminary steps you might take toward getting a wedding loan. 

  1. Check your credit score 
    Your credit score and credit history might affect the terms of your loan. If you have good or excellent credit, you're more likely to qualify for favorable loan terms.  Start by checking your credit score. The most creditworthy applicants might qualify for a lower rate. So, it's important to see if you have excellent credit or good credit—and, if not, try to improve your score. This is also a good time to get a free copy of your credit report from one of the major credit bureaus. Look for areas to improve and possibly reach a higher credit score before applying. For example, your credit report might have errors about your payment history that could be corrected in your favor.

    However, even with fair credit or poor credit, you could still find personal loan lenders willing to work with you. A low credit score might just mean that you will have to adjust the loan amounts you’re seeking or take on a loan with less favorable terms. Prospective borrowers don't have to let lower credit scores stop them from finding a wedding loan

  2. Get prequalified 
    To explore your loan options without impacting your credit score, consider getting prequalified. This process allows you to receive personalized loan options and compare terms without undergoing a "hard credit inquiry," an inquiry that could affect your credit score to some extent. Prequalification gives you valuable insights into the loan amount, interest rates and repayment terms you may qualify for

  1. Compare options
    Take the time to assess all the facets of the loan, such as interest rates, loan terms and any associated fees. 

    For example, with a TD Fit Loan, TD Bank offers fixed interest rates and loan terms ranging from 36 to 60 months with loan amounts ranging from $2,000 to $50,0001. Additionally, TD Bank provides relatively fast funds—in as little as one business day1—with no application or origination fee and no prepayment penalties. And with TD's online banking services, you can pay your bill, manage your loan and more online, at any time. 

    TD Bank’s personal loan payment calculator even helps you estimate your monthly payment and the total interest you can expect to pay over the life of your wedding loan before you even apply. When you’re ready to apply, you can get a personalized rate with no impact to your credit score

  2. Make a choice and apply 
    Once you've compared your options and made your choice, it's time to apply. The application process typically involves providing personal and financial information, including details about your income, employment status and any existing debts

  3. Get your money 
    If your loan application is approved, you'll receive funds according to the lender's guidelines. If you select a personal loan with TD Bank, funds can be deposited into your bank account or savings account in as little as one business day after approval

How to Choose a Loan Option for Your Wedding

Before finalizing your decision to take a personal loan for your wedding, there are several factors to consider. 

  1. Budget for the wedding 
    Determine your wedding budget and calculate how much you need to borrow. Be realistic and ensure that the loan amount aligns with your overall financial situation. Think about your future household budget, how the monthly installments will fit in, and whether you can settle the loan during the original repayment period

  2. Repayment capabilities 
    Consider your monthly budget and calculate whether the loan's fixed monthly payment fits comfortably within your finances. Ensure that you can meet the repayment terms without jeopardizing your overall financial stability.

    And if you receive any cash with your wedding gifts, consider using some of those funds to make a lump sum payment toward your loan. With TD Bank, there will be no prepayment penalties

  1. Terms of the loan
    As you weigh your choices, think about the different facets of the loan and how they relate to one another

    • Interest rates. Look for a loan with a competitive interest rate so you'll pay less over the life of the loan
    • Loan term. Do you want to pay off your loan quickly, or do you need more time to make payments? Choose a loan with a term that works for your budget and timeline. Longer-term loans may have higher rates
    • Loan amount. How much do you need for the wedding? Borrowing less could put you in the position of using a high-interest credit card to pay for wedding expenses
    • Fees. Some lenders charge upfront fees such as application and origination fees. TD Bank, however, does not charge such fees

Using a personal loan for all your wedding expenses can be a practical and convenient way to bring your dream wedding to life. Whether it's securing the perfect venue, hiring the best vendors or creating an unforgettable experience for you and your loved ones, a personal loan can provide the financial means to make it happen.

Your TD account comes with more than just a great rate

  • Mobile Banking

    Bank anytime, anywhere—right from your phone with the TD Bank app.

  • TD Overdraft Relief2

    Overdrafts happen. When they do, TD Overdraft Relief gives you flexibility and options to avoid fees.

  • TD Checking Accounts

    Find an account that meets your needs – and has the perks you want.

  • TD Savings Accounts

    Whether you're saving for a rainy day or with a goal in mind, start today.

This article is based on information available in June 2023. It is for general informational purposes only. It is not intended to provide specific financial, investment, tax, legal, accounting, or other advice and should not be acted or relied upon without the advice of a professional advisor. A professional advisor will recommend action based on your personal circumstances and the most recent information available. For specific advice about your unique circumstances, consider talking with a qualified professional.

1Approval process may take longer if additional documents are requested. Funds are generally deposited electronically via ACH for delivery next business day if approved by 4:30 p.m. ET Monday–Friday. Depending on your bank, it may take up to three days for your funds to be available.

2Overdraft Services do not apply to TD Essential Banking Accounts. We may decline or return transactions that would result in an overdraft. Transactions that you make may cause your Account to overdraw but we will not assess your TD Essential Banking Account an overdraft fee or return item fee. For example, preauthorized transactions and other transactions may post to your Account even when the available balance in your Account is not sufficient to pay the transaction.

Have a question? Find answers here