Are you thinking about credit for your wedding to properly celebrate the most beautiful day of your life in traditional style? Do you still hesitate, whether you would rather save first and if credit, which loan model?
Our credit guide for wedding loans explains how you can put your personal day of honor on a financially solid footing. In the current situation, wedding couples do not have to fear interest. We can start with the wedding interest rate of 1.79 percent, which is independent of creditworthiness.
Credit for the wedding – celebrate big three times
From the green wedding to the sky wedding, couples plan their life together. The day of the wedding is usually celebrated three times in the Freundeskreis. Of course the day of the marriage (green wedding), after 25 years the silver wedding and the golden wedding after 50 years of marriage. The question of the credit for the wedding arises every time, because unforgettable celebrations cost money.
Exactly how much money has to be financed is a very tricky question. The overall cost can be reasonably estimated, but what the bottom line is, no couple can predict with certainty. When taking out credit, it would be advisable to choose the right loan model. Overdraft facility, framework credit or an installment loan? What needs to be considered with the loan terms for installment loans? What is the monthly rate?
For young couples who do not live in a region where the bridal parents traditionally pay for the green wedding, the wedding financing is a headache. Planning the credit for the wedding correctly seems just as complex as the actual wedding preparation. The big uncertainty factor for credit planning are the guests. If they bring mostly cash gifts, the couple often go out of the wedding with a big plus.
Loan model – credit line for flexibility
If they mostly stick to the gift list, then the new household and the honeymoon are secured. – But, the bottom line numbers are deep red. Only after the wedding do the bride and groom know exactly. Instead of applying for an installment loan straight away, couples in this situation would better opt for a framework loan. To explain, a credit line is something like a mixture of installment loan and overdraft facility.
A flat-rate credit line is granted, which can be called up in whole or in part as required. The interest level is only slightly higher than for comparable installment loans. In return, the bank only charges interest on withdrawn money. The repayment is also flexible, only interest payments would have to be made monthly. As a loan for the wedding, the framework loan is well suited for interim financing.
He will be rescheduled into an installment loan once all the figures have been determined. Theoretically, it would be equally flexible to expand the MRP. But, the overdraft interest of many banks is so exorbitantly high that the interim financing is worthwhile for practically every bride and groom.
Installment loan for the wedding – what is important?
In the first place, the cost of financing always comes first with loans. How much interest borrowers pay depends on the amount of the loan, the creditworthiness and partly on the purpose. Wedding credit is not a special purpose loan, but a free loan. There are therefore no special interest rates for this purpose. Nevertheless, the couple does not have to accept the contract that the house bank presents.
Credit comparison on the Internet ensures an overview of interest costs in a few seconds. The small loan up to 3,000 USD with a term of 12-36 months would be particularly low-interest. The loan only costs 1.79 percent effective interest. For large weddings, costing 20,000 USD plus X, the loan for 2 people to finance the celebrations is obvious. The good common credit rating ensures easier approval and low interest rates.
With regard to the desired rate, it is not advisable to pay off with maximum force. As a healthy rule of thumb, 10 percent of net income is the maximum rate. The comparatively low rate increases the runtime. But small installments at the same time create the security to be able to pay back if things go down economically. Free special repayments, if there is money left, allow countermeasures to be taken at any time.
Wedding credit – the couple’s poor credit rating
The majority of couples celebrate the green wedding at a very young age. At the beginning of the career ladder, it is not easy to demonstrate sufficient creditworthiness for lending. Regular bank credit for the wedding would be realistic for students, for example, by applying for a loan with a guarantor. Without guarantors and with a low income, serious credit brokerage is recommended as a way out of the credit crunch.
We recommend Best Bank as a reputable credit brokerage portal for loans for weddings with poor credit ratings. Proof of success speaks in the first place for the credit portal as a credit broker. Loans with a difficult credit rating could be granted from private to private or approved by a bank.
Fear of bad surprises from the loan application on Best Bank would be inappropriate. The portal’s immaculate reputation is based on satisfied borrowers. Independent studies, for example by DIW Berlin (2011), confirm the company’s positive press. They are a sign of the real chance of getting credit for the wedding, even though regular banks refuse