How To Get A Wedding Loan With Bad Credit In Singapore
For most people, a wedding is a once-in-a-lifetime event that requires perfection. Planning the perfect wedding, however, involves a lot of work.
This includes finding the perfect venue, getting the floral arrangements right, the wedding cake, the wedding band, catering, the wedding dress, and much more.
One thing can, however, hamper all plans and preparations: money. Getting the wedding of your dreams can cost a lot of money and since many people don’t have wedding savings, getting a wedding loan might be the best option.
However, most banks don’t grant wedding loan requests from borrowers with bad credit. And this could end your dream of planning the perfect wedding.
Luckily, there’s way around this. In this article, you’ll learn how to get a wedding loan with bad credit.
What Is A Wedding Loan?
A wedding loan is simply a personal loan, gotten to cover the costs of planning a wedding. This type of loan can be borrowed from banks, or licensed money lenders.
Although most banks don’t have a specific loan catering for intending couples, loans for weddings are usually tagged personal loans and to qualify, you must be creditworthy.
Most licensed money lenders in Singapore now offer wedding loans specifically, although most of them come with guidelines and requirements that state how much can be borrowed and the repayment process.
These requirements often rule out couples wondering how to get a wedding loan with bad credit.
Advantages Of A Wedding Loan
Below are some of the benefits of taking a wedding loan:
- Flexibility in financing: One of the benefits of a wedding loan is that it allows couples to pay for their wedding expenses over a set period. Weddings can be quite expensive and paying for everything upfront means your finances will take a huge hit. Hence, taking a loan will lessen the financial burden on you. This is especially helpful to couples who want a destination or elaborate wedding.
- Avoiding high-interest credit card debt: The cost of financing a wedding means you might fall into debt if you decide to finance it with your credit card or dip into your savings. But taking marriage loans in Singapore means you don’t have to worry about falling into debt because of your wedding. Hence, taking a wedding loan is cost-effective in the long run.
- Reduced interest rates: Personal loans are strictly regulated to protect borrowers from being taken advantage of. This means you can be assured of favourable interest rates and loan terms when applying for a wedding loan.
- Quick wedding loan application process: Getting a loan approved in the bank can take weeks and this can halt your wedding preparations. Opting for a licensed money lender means a speedy and convenient loan application, which will give you enough time to plan and prepare for your wedding. Most licensed money lenders who offer wedding loans in Singapore use online application forms for a speedier process.
- Personalised wedding loans for customers: Loans for weddings are perfect for those with low credit scores. Low credit scores ordinarily prevent you from obtaining personal loans from banks. However, if you’re worried about how to get a wedding loan with bad credit, some commercial money lenders are willing to overlook your bad credit and allow you to borrow up to $10,000 even with a low credit score.
How Much Money Will You Need For Your Wedding?
For people who are worried about how much a wedding cost in Singapore, the total amount of money you’ll need for your wedding depends on how special, intimate and lavish the ceremony will be.
The average wedding ceremony, considered affordable in Singapore, costs around $30,000 to $50,000 and even this can still be quite expensive for many couples.
For a luxurious and glamorous wedding, couples may need to spend well over $100,000. With the heavy financial implications of planning a wedding, it is no surprise that a marriage loan in Singapore is common as it helps cushion the financial impact.
How To Get A Wedding Loan With Bad Credit
Getting a marriage loan in Singapore offers you an opportunity to have the wedding of your dreams. But how can you make it happen with bad credit?
Let’s find out:
Licensed money lenders: One of the best ways to get wedding loans in Singapore, even with a low credit score, is to find a licensed money lender that offers loans to borrowers with bad credit. These financial institutions will prepare a wedding loan that perfectly fits your financial ability.
The loan is designed according to your income. A flexible, long-term payment plan is created to avoid putting a heavy financial burden on you, especially as a newlywed.
Improve your credit: If you don’t like the terms offered by licensed money lenders, your best chance is to wait to improve your credit score before applying for a loan in a bank. Although this means you may have to reschedule your wedding, it gives you the opportunity to get the best wedding loan terms.
Get a loan from friends or family: Financial institutions aren’t the only places to get loans. If you have friends or family members who are rich, you can get a loan from them to finance your wedding even if you have a bad credit score. And since they are your loved ones, they may give you a long time to repay the money and possibly not charge interest.
Where And How To Apply
Most licensed money lenders do not require you to have collateral. They offer a completely flexible and unsecured loan which means you get to protect your assets.
The application process is straightforward and hassle-free. To apply for a loan, simply visit the lender’s website, complete the loan application form online and click the submit button.
You will be required to wait, depending on how fast the money lender processes the application. You will receive an update on the status of your application within the time specified by the money lender.
If your application is approved, you will have to go to the borrower’s outlet to append your signature to the agreement so you can receive your money.
Which Bank Is The Best For A Marriage Loan?
Several banks in Singapore offer wedding loans to borrowers. The following are the best three banks and what they offer*:
Standard Chartered CashOne Personal Loan
Standard Chartered has a minimal annual income requirement of $20,000 for Singaporean permanent residents and $60,000 for foreigners living in Singapore.
They also charge no processing fee, have an annual rate of 3.48% and have a loan term of five years. From Standard Chartered, you can get up to $250,000 which is four times the required annual income.
HSBC Personal Loan
HSBC has an annual income requirement of $30,000 for Singaporeans and $40,000 for foreigners residing in the country.
They also offer one of the lowest interest rates at 3.2% annually and a loan term of seven years. You can get up to $200,000 and will only pay interest on what you spend from the loan. There are no charges required to process the loan.
Citibank Quick Cash
Citibank is perfect for individuals with a Citibank Credit card. With a Citi Quick Card, your credit card limit is converted into money which can be paid back monthly in instalments.
The repayment term spans from one to five years. It has a minimum annual requirement of $30,000 for Singaporeans and permanent residents, and $42,000 for foreigners.
Customers can apply for loans through the Citi Quick Cash mobile app of the website. If opting for Citibank, you can also get a wedding credit card to help manage your expenses.
Opt For A Licensed Money Lender To Get A Wedding Loan With Bad Credit In Singapore
If you have bad credit and have been turned down by several banks, you don’t have to worry. Many licensed money lenders are willing to offer wedding loans to borrowers with bad credit. And this is where Horison Credit comes in.
With just proof of stable income, you can get your wedding loan application approved at Horison Credit. So what are you waiting for?
Contact us now or apply for a loan with Horison Credit to get the perfect wedding you’ve always dreamed of.