While cake tastings and visiting venues may be the most enjoyable parts of planning a wedding, figuring out how to finance the big day might be the trickiest. If you’re not using savings or receiving a financial gift from a relative, a personal loan could be a convenient way to pay for your wedding.
Personal loans usually offer quick funding, and with fixed predictable monthly payments making them an attractive option for couples planning their wedding. Let's look at how using a personal loan to pay for a wedding works.
How to apply for a personal loan for a wedding
Citi and many other lenders let you apply for a personal loan through a straightforward online application process. Before filling out the application, it’s a good idea to research different lenders, their rates and their policies to find the right fit. Once you’ve found the lender you want to work with, here’s how the process usually works:
Before you apply:
- Check your credit score to make sure it meets the lender’s requirements. This can also be a good opportunity to check your credit report for any errors.
- Determine how much you need to borrow – how much will the wedding cost? How much can you cover with your current savings and how much do you need? Have a number in mind before you apply.
- Gather relevant documents, such as a government-issued ID (like a passport or driver’s license), proof of address (such as a utility bill or lease), proof of income (two or three recent pay stubs), and other documents related to creditworthiness as required by the lender
How to apply:
- Fill out the application and attach the necessary documentation. Your application will usually authorize lenders to conduct a hard credit inquiry.
- Be prepared to submit additional documentation if required to assist in your loan application process.
Once you’ve applied, wait for a response from the lender and, if you’re approved, wait for them to deposit your funds.
Who can apply?
Personal loan applicants will need to meet the lender's eligibility criteria to be approved. The exact requirements will differ based on the lender's policies, but most will consider these factors:
- Income: Many lenders require proof of employment or income before they approve a loan application.
- Creditworthiness: Every lender will have their own creditworthiness requirements. If you're not sure whether you meet a lender's creditworthiness criteria, look for pre-qualification options or reach out to them for more information.
- Debt-to-income-ratio (DTI): Your DTI is how much of your monthly gross income goes toward paying debt, expressed as a percentage. Lenders will have their own requirements for DTI. They use this figure to help evaluate a prospective borrower’s ability to pay back debt.
