The ultimate guide to wedding loans

According to Moneysmart, 60% of couples get a loan to pay for their wedding and 18% chuck it on the credit card. That's where wedding loans come in. In this guide, we'll explain what wedding loans are, how they work and how to get one.

What's in this guide?

What is a wedding loan?

A wedding loan is a personal loan that you can use to pay for your wedding expenses.

It's usually an unsecured loan, which means you don't need collateral to get approved.

Instead, lenders like Wisr look at your credit scores, income, and other factors to determine whether you're eligible for a loan to fund your wedding expenses and how much you can borrow.

How do wedding loans work?

Wedding loans work just like other personal loans. You apply for a loan from a lender, and if approved, you receive the funds in a lump sum. 

You are then free to use this money to pay for your wedding expenses

Wedding loans typically have a fixed interest rate and set repayment period. 

Wisr wedding loan terms are 3, 5, or 7 years - and you’ll need to make monthly repayments until your loan is paid off. 

How do I get a wedding loan?

So you’ve done your research and decided to look for a wedding loan. 

To get started you'll need to follow a few steps:

  • Check your credit scores:

    Lenders will look at your credit scores to determine whether you're eligible for a loan and what interest rate you'll qualify for. Check your credit scores for free with Wisr here. If your credit scores are low, you may need to work on improving them before applying for a loan.

  • Shop around for a rate estimate:

    Look for lenders that offer personal loans or specifically advertise wedding loans. Compare a few different loans to find the best one for your needs. Get your free, personalised rate estimate with Wisr here.

  • Prep your documents:

    To get a loan, you’ll need to provide proof of income - payslips and tax returns - and other documentation such as bank statements and utility bills.

  • Apply for your wedding loan:

    When you’ve settled on a lender, it’s time to complete your application and submit your documentation. The lender will review your application and let you know if you're approved for a loan.

  • Pay for your wedding:

    Once approved and your loan documents are signed, the lender will deposit the funds in your bank account. From there, you can use the funds to pay for your wedding expenses.

  • Make your repayments:

    When you receive your funds, you’ll need to start repaying your loan. Make sure you understand your loan repayment terms and budget accordingly to avoid missing payments or defaulting on the loan. Wisr loan customers get free access to our money management tool Wisr App.

A wedding loan can be a great option for couples who want to finance their dream day.

If you’re looking to go down this road, take the time to understand how wedding loans work and where to get one that suits your needs, so you can decide whether this type of loan is right for you.

Do most people get a loan for their wedding?

Many Aussies say ‘I do’ to wedding loans, but not all. 

Reality is, not everyone has the cash to splash to pay for their wedding upfront and many couples admit to seeking a bit of financial help to pay for their wedding. 

It all comes down to your financial situation and priorities. 

Some couples may choose to pay for their wedding out of pocket or by setting a savings goal and sticking to it. 

Others may receive financial assistance from family or choose to have a smaller, more intimate wedding that’s within their budget.

Getting a wedding loan can be a viable option for those who don't have enough savings to cover the costs of their dream wedding or prefer to spread out the costs over time. 

This type of loan can also help you to avoid putting wedding expenses on high-interest credit cards, which can lead to long-term debt and financial stress. 

Ultimately, the decision to get a wedding loan should be made after careful consideration of your financial situation, the loan terms and the interest rate. 

It's important to budget carefully and ensure that you can afford the monthly repayments before taking on any debt.

Is taking out a wedding loan a good idea? 

We can’t answer this for you. 

Whether a wedding loan is a good idea or not depends on your financial situation and preferences. 

To help you decide, here are some pros and cons to consider:

The pros: 

  • You can finance your dream wedding:

    If you don't have enough saved to cover the costs of your dream wedding, a wedding loan can help you finance it without sacrificing your vision.

  • You can spread out the costs over time:

    A wedding loan can allow you to spread out the costs over several years, making it easier to manage your cash flow. As we’ve mentioned, Wisr offers the flexibility to choose whether you pay your wedding loan back over 3, 5 or 7 years

  • Fixed interest rates:

    Most wedding loans come with fixed interest rates, which means your monthly repayments will stay the same over the life of the loan.

  • You may improve your credit scores:

    By keeping up with your monthly repayments, a wedding loan can be a good thing for your credit history and it may result in improved credit scores over time.  


The cons: 

  • You'll be in debt:

    Taking out a wedding loan means you'll be in debt, which can lead to financial stress and anxiety if you aren’t prepared to make your repayments. 

  • You'll pay interest:

    You'll need to pay interest on your loan and depending on your loan term, can add up over time and increase the total cost of your wedding.

  • You may need to sacrifice other money goals:

    Prioritising a wedding loan to finance your wedding, may mean postponing other money goals such as saving for a house deposit or paying off existing debt. 

  • You may hurt your credit scores:

    While paying off your loan on time can improve your credit scores, if you don’t budget carefully you may find you miss repayments which can hurt your scores. 

Can I use my loan for an overseas wedding?

This depends on the terms and conditions of the loan. 

In most cases, a Wisr wedding loan can be used to pay for an overseas ceremony. 

Some lenders have restrictions on how your loan funds can be used, while others may allow more flexibility.

If you’re looking to finance an overseas wedding, check with your lender beforehand. 

In some cases, you may need to provide documentation, such as travel itineraries and wedding venue contracts, to show how the loan funds will be used.

Planning a wedding overseas can come with its own set of challenges and expenses such as; travel costs, accommodation, and additional fees for vendors and services. 

Before taking out a wedding loan it’s important to carefully consider all of the expenses involved and make sure that the loan amount you're applying for is sufficient to cover all of your wedding-related expenses. 

Can I get a wedding loan with bad credit?

It can be harder to get a wedding loan with bad credit, but it’s not impossible. 

Most lenders consider your credit scores and credit history as part of the application process. 

You may need to provide documentation to show your ability to repay the loan, such as proof of income or employment.

Keep in mind that getting a wedding loan with bad credit may come with higher interest rates and fees, which can increase the cost over the life of your loan. 

Before applying for a wedding loan with bad credit, make sure you understand the terms and conditions of the loan, to make sure you can afford the monthly repayments and avoid getting into more financial strife.

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Disclaimer: This article contains general information only, and is not general advice or personal advice. Wisr Services does not recommend any product or service discussed in this article. You must get your own financial, taxation, or legal advice, and understand any risks before considering whether a product or service discussed in this article may be appropriate for you. We have taken reasonable efforts to ensure that the information is accurate at the time of publishing, but the information is subject to change. We may not update the article to reflect any change.

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