If you struggle to cover your wedding expenses that may come on average at about $35,000, you might need to start saving from an early age. Of course, if you don't have enough cash sitting in your bank account, you may mull over financing your wedding-related expenses using off-budget funds.
To foot the wedding bill, many couples pick up loans, usually referred to as personal loans. However, everything changes upside down when you have bad credit, as qualifying for a loan becomes more challenging. If you cannot afford your major life event because of poor or no credit, wedding loans for bad credit may offer you a quick fix from the comfort of your home.
How to Finance A Wedding?
The wedding can be a costly event, so some couples look for wedding loans for bad credit to afford the cost. Wedding loans for bad credit are usually personal loans with long repayment terms. But if you look for a short-term alternative to pay off earlier, cash loans online are at your call.
The primary trouble with securing a loan when you have bad credit is that most lenders might not approve because of considering you as a risky borrower. However, when you turn to a lender offering bad credit loans, you'll be more likely to get quick funding.
Bad Credit Explained
Bad credit, also known as poor credit, is your financial history of defaulting on a loan or falling behind on your payment showing the likelihood that you may fail to make on-time payments in the future. Usually, poor credit is reflected as a low credit score that falls in the range of 300-670 on the FICO score. Taking out a loan with bad credit is а pretty challenging task (especially at reasonable interest rates) because you are more likely to miss the payment than those with good credit. This is true for almost all types of loans, whether it's a secured or unsecured type of loan.
What Types of Loans Can I Get with Bad Credit?
Although you may have a quite limited choice because of having bad credit, there are still loans available for you:
An Unsecured Personal Loan
If you have nothing to offer to back up your loan, an unsecured personal loan is what you need to opt for. This is an excellent option to obtain quick money and pay it back in small installments over an agreed length of time.
A Secured Loan
Having valuable assets against your debt is likely to make you more successful in getting a loan with bad credit. However, at the same time, you need to consider that collateralized lending may be riskier if you don't meet your contractual obligations. Your assets can be seized in case you fail to pay back your loan.
A Secured Homeowner Loan
This is another type of secured lending where you are requested to put up your home as collateral. However, again you hold the risk of losing your assets if you don't keep up with payments.
These are small-dollar loans designed for short-term financial goals. If you are looking for a relatively small amount of cash, typically up to $2500, these quick advances are available to take out almost on the spot.