Marriage is an important moment in the life of a couple. However, the organization of this event requires a substantial budget which could discourage lovers. Fortunately, we can use marriage credit to achieve this.
Financing your marriage with a marriage credit
You can finance a marriage in whole or in part by taking out a consumer loan. It is a marriage loan which is part of an unrestricted loan. This credit formula is distinguished by the absence of proof of use of funds from the borrower. The latter may freely use the money obtained for his various expenses. These include, for example, the dress, the costume, the ceremony, the caterer or various providers.
On the other hand, a restricted credit is linked to the acquisition of a good or service. The borrower is required to provide supporting evidence for obtaining the credit. It can be, for example, an order form for the purchase of a new car. For the wedding credit, the borrower can get up to $ 21,000. The duration of the loan varies according to several criteria. These parameters relate in particular to the monthly repayment capacity.
If you can handle high monthly payments, credit will be less expensive.
Determine the rate and cost of the wedding credit
When analyzing marriage credit offers, one must take into account its rate. It is therefore a good idea to compare the Annual Effective Annual Rates (APR). This includes the nominal rate or the interest rate paid by the lender. The APRC also includes various credit-related costs, such as application fees. These are generally present as part of a wedding loan. However, some lending institutions do not charge for it.
In general, lenders offering low APRs are around 1%. These rates are only applicable for small amounts. They are also granted for short durations (12 months). Furthermore, the APR largely influences the total cost of credit. The latter will also depend on the duration of the credit. The total cost of the credit determines the amount you will actually pay in the end.
One should choose short durations and high monthly payments to minimize the cost of credit.
Tips for simulating a wedding credit
We must first make an exact point on his needs. Indeed, it is necessary to define the amount of credit that can be borrowed for the marriage. To do this, we make a precise inventory of planned expenses. Just use a wedding budget simulator available on the Internet. The repayment duration must also be defined. In addition, we must determine the deadline that we can support each month without breaking the bank.
A household’s repayment or debt capacity must be less than 33% of its income. It is advisable to stay below this limit. Other than that, you have to compare several offers of wedding credit. To do this, you must go to the site of online banks and credit organizations. You can perform your simulations alone on the Internet. Just fill out a form on each organization’s website.