The Best Wedding Loans Of 2022

With the average cost of a wedding at $28,000 according to The Knot, you may be exploring alternative ways to finance your special day.

Personal loans have become a popular way to fund a variety of large expenses, including weddings. This is because they’re a more affordable alternative to credit cards since they typically carry a much lower interest rate (though the rate you receive will depend on your credit score). 

If you’re considering using a loan to cover some or all of your wedding expenses, CNBC Select rounded up five of the best personal loan lenders for you to consider. When compiling our list, we evaluated dozens of lenders and looked at key factors like interest rates, fees, loan amounts and term lengths offered, plus other features including how your funds are distributed, autopay discounts, customer service and how fast you can get your funds. (Read more about our methodology below.)

Who’s this for? LightStream is known for offering loans with some of the lowest interest rates (plus the ability to receive an even lower interest rate when you enroll in autopay). This lender provides loans for nearly every purpose except for higher education and small business, which means using the funds to cover wedding expenses is fair game. 

Terms range from 24 to 144 months — the longest-term option among the lenders on this list. A longer loan term typically means lower monthly payments, which can make repaying the debt feel a little more affordable. Just keep in mind that a longer term also means you’ll accrue more interest charges over the long run.

LightStream does not charge any origination fees, administration fees or early payoff fees.

Who’s this for? SoFi offers personal loan amounts of up to $100,000 depending on creditworthiness, which can be ideal for individuals who need to borrow larger amounts of money to cover their wedding expenses.

SoFi allows borrowers to choose between a variable or fixed APR — most other personal loans only come with a fixed interest rate. Variable rates can go up and down over the lifetime of your loan, which means you could potentially save if the APR goes down (but the APR can also go up depending on economic conditions). However, fixed rates guarantee you’ll have the same monthly payment for the duration of the loan’s term, which makes it easier to budget for repayment.

Who’s this for? Marcus by Goldman Sachs Personal Loans doesn’t charge any origination fees, early payoff fees, or late fees. By avoiding these fees, taking on this loan makes paying for your wedding just a little more affordable, and you won’t have to worry about accruing penalty charges for paying back the entire loan early.

Term lengths vary from 36 to 72 months. Marcus also has a soft inquiry tool on its website, so potential borrowers can look at possible loan options based on their credit report without impacting their credit score.

Who’s this for? Upstart is ideal for individuals with a low credit score or even no credit history. It considers factors like education, employment, credit history and work experience. Term lengths are a bit limited, though, compared to other more flexible options; you can choose either a three-year or five-year loan.

There are a few fees involved with this loan. Upstart charges an origination fee of up to 10{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the loan amount. And while there is no early payoff fee, this lender does charge a late fee of 5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the last amount due or $15, whichever is greater.

Who’s this for? With Discover Personal Loans, you can receive your money as early as the next business day provided that your application was submitted without any errors (and the loan was funded on a weekday). So if you need funding in a pinch so you can start booking your venue and other services, this lender may be appealing.

While there are no origination fees, Discover does charge a late fee of $39 if you fail to repay your loan on time each month. There’s no penalty for paying your loan off early or making extra payments in the same month to cut down on the interest. 

A wedding loan is simply a personal loan that is used to cover wedding expenses. Personal loans are a form of installment credit that can be a more affordable way to finance the big expenses in your life. In addition to weddings, you can use a personal loan for debt consolidation, home renovations, travel and more.

As with any other form of credit, wedding loans and other personal loans can impact your credit score positively or negatively. Applying for a personal loan will trigger a hard inquiry so you should expect a slight dip at first, but using a personal loan to diversify your credit mix and making on-time payments can improve your score in the long run.

Select now has a widget where you can put in your personal information and get matched with personal loan offers without damaging your credit score.

• Co-applicants or joint applications: A co-applicant is a broad term for another person who helps you qualify by attaching their name (and financial details) to your application. A co-applicant can be a co-signer or a co-borrower. Having a co-applicant can be helpful when your credit score isn’t so great, or if you’re a young borrower who doesn’t have much credit history. If your co-applicant has a good credit score, you might be offered better terms, including qualifying for a lower APR and/or a bigger loan. At the same time, both applicants’ credit scores will be affected if you don’t pay back your loan, so be sure that your co-applicant is someone you feel comfortable sharing financial responsibility with. 
• Co-signers: A co-signer agrees to help you qualify for the loan, but they are only responsible for making payments if you are unable to. The co-signer does not receive the loan, nor do they necessarily make decisions about how it is used. However, the co-signers credit will be negatively affected if the main borrower misses payments or defaults.
• Co-borrower: Unlike a co-signer, a co-borrower is responsible for paying back the loan and deciding how it is used. Co-borrowers are usually involved in decisions about how the loan is used. Some lenders will only consider two co-borrowers who share a home or business address, as this is a firm indicator that they are sharing the responsibility of money in mutually beneficial ways. Both co-borrowers’ credit scores are on the hook if either one stops making payments or defaults.
• Direct payments: Some lenders offer direct payments when you select debt consolidation as the reason for taking out a personal loan. With direct payments, the lender pays your creditors directly, and then deposits any leftover funds into your checking or savings account. Until you see your account balance is fully paid off, it’s best to keep making payments so that you don’t get hit with additional late fees and interest charges.
• Early payoff penalty: Before you accept a loan, look to see if the lender charges an early payoff or prepayment penalty. Because lenders expect to get paid interest for the full term of your loan, they could charge you a fee if you make extra payments to pay your debt down quicker. The fees could equal either the remaining interest you would have owed, a percentage of your payoff balance or a flat rate.
• Origination fee: An origination fee is a one-time upfront charge that your lender subtracts from your loan to pay for administration and processing costs. It is usually between 1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} and 5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, but sometimes it is charged as a flat-rate fee. For example, if you took out a loan for $20,000 and there was a 5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} origination fee, you would only receive $19,000 when you got your funds. Your lender would get $1,000 of the loan off the top, and you’d still have to pay back the full $20,000 plus interest. It’s best to avoid origination fees if possible. Having a good to excellent credit score helps you qualify for loans that don’t have origination or administration fees. 
• Unsecured versus secured loans: Most personal loans are unsecured, meaning they are not tied to collateral. However, if your credit score is less-than-stellar and you’re finding it hard to qualify for the best loans, you can sometimes use a car, house or other assets to act as collateral in case you default on your payments. When you put an asset up as collateral, you are giving your lender permission to repossess it if you don’t pay back your debts on time and in full.

To determine which personal loans are the best, Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions, that come with no origination or signup fees, fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.

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