Destination weddings are a new trend wherein many couples are seeking a retreat from the usual and mundane. Many resorts offer additional-stay luxury honeymoon packages to couples who plan their ceremony with such resorts and hotels. Plus, since the guest list is trimmed down to include only your loved ones, a destination wedding may even turn out to be cheaper!

But, most venues require people to make wedding reservations in advance, and that means you might have to have a lump sum handy to make the bookings. Whether it’s for reserving your wedding venue, booking flights and accommodations, or paying for catering, a destination wedding loan from LoanTube can be your ideal financial aid.

Destination wedding loans are essentially unsecured personal loans that help you finance your wedding expenses when you’re planning your ceremony in a different city or country. These loans enable you to split the cost of your wedding expense into affordable monthly instalments, allowing you to pay for reservations upfront. You can borrow wedding loans from £1,000 to £35,000 over 12-84 months.

Wedding loans for destinations weddings are pretty straightforward. Since these loans are unsecured, you won’t have to pledge your assets to secure one. However, the success of your application heavily depends on your credit score and income stability.

Credit scores give lenders an insight into your credit history and repayment ability. A higher credit score implies a cleaner credit history and better repayment ability. Thus, the higher your credit score, the lower will be the lender’s risk proposition, and the lower will be the interest on your loan.

After a hard credit check, you must complete some contractual formalities. You need to read your agreement thoroughly to check for any additional fees the lender may have imposed. Once approved, the lender transfers the lump sum directly into your bank account, which you can use to fund your wedding expenses.

It is crucial to understand the default implications associated with unsecured wedding loans. Missing repayments on your loan could gravely impact your credit score. Moreover, if you default, you may land a County Court Judgment (CCJ), which can stay on your credit file for six years. CCJs can make it challenging for you to secure credit.

When planning a destination wedding, you might incur the following expenses:

• Flights and transfers
• Accommodation for your guests and family 
• Car rentals (if required)
• Meals for the guests
• Catering for the wedding day
• Entertainment before or after the wedding – casinos, movies, etc. 
• Travel agent’s fee
• Destination photographers 
  
  

The list may vary depending on your guest list and wedding budget. It would be best to make space for miscellaneous expenses or indulgences in your budget.

Here’s when it makes sense to use a wedding loan to finance your destination wedding:

• You have a stellar credit history and seek a credit option with fixed, low-interest rates.
• You want small and affordable instalments over an extended term.  
• It would help if you had a lump sum to pay for destination wedding expenses instead of a credit line – flights, accommodation, venue, catering, etc. 
• You want to maintain your peace of mind with an unsecured loan and prefer not to risk your assets. 
• You’ve created a budget and know exactly how much money you will need to borrow. 

Destination weddings can seem intimidating at first – you need to think about accommodation and food for an entire guest list, along with flight tickets. But if you follow a strict budget and a selective guest list, a destination wedding can save you a few extra pounds. Here’s what you can do:

• Only invite your close friends and family. 
• Try to choose a destination accessible by road or trains to save travel costs. 
• Pre-book as per your RSVPs to save money.
• Try to wrap up your wedding within two days to avoid extended bookings. 
• Stay back for a ceremonial mini-moon and push your honeymoon for when you have significant savings. 
• Negotiate a ‘bulk booking’ discount with the accommodation.

A destination wedding is a big decision, so it is imperative to have a thorough discussion with your partner before opting for a wedding loan. Here are some questions to help you get started:

Is this a suitable loan amount for me?

Crunch some numbers to evaluate how much you can afford to spend on your wedding. It’ll help you determine a loan amount suitable for your wedding expenses. However, you should only borrow an amount that you will eventually repay. 

Will I be able to commit to the loan term?

An extended loan term requires a lot of commitment and discipline. If you take out a long-term loan, your monthly payments may be lower, but you may accrue a greater interest on the loan. Determine a loan term that aligns with your present and foreseeable financial situation.

What happens if I miss a repayment?

A missed payment could cost you up to 150 points from your credit score. If you miss payments consistently and default on the loan, not only would you lose a high 350 points off your credit, but the lender may hand you a County Court Judgment (CCJ). CCJs affect your credit file for up to 6 years, hampering your chances of securing credit in the future. 

Do I need a contingency plan?

A contingency plan is pivotal in ensuring timely payments, regardless of your financial circumstances. Make an informed decision before borrowing a wedding loan for your destination wedding.