Personal Finance

How To Get A Wedding Loan With Bad Credit In Singapore

February 1, 2023

Every couple wants to have their dream wedding because it is a one-time event.

However, the wedding cost in Singapore is high, and you may be short of finances. That is where a wedding loan comes in handy.

But do you have a good credit score that will earn you a loan? Unfortunately, you may have a bad credit rating due to financial constraints. As a result, you may be thinking of how to get a wedding loan with bad credit.

Keep reading this article to understand what a wedding loan is, why it is essential, and how much you can borrow.

We will also help you know how to get a wedding loan with bad credit and where to apply for a loan for wedding.

What Is A Wedding Loan? 

A wedding loan is a type of personal loan that you get to cover the cost of your wedding.

Unlike personal loans that don’t have a specific purpose and can be used for anything, wedding loans are designed for couples who want to get married.

Most marriage loans in Singapore are unsecured loans, which means you don’t need collateral to apply for them.

How Much Money Will You Need For Your Wedding?

Before you approach a lender for wedding loans Singapore, you should know how much you need to cover your wedding cost.

So how much does wedding cost in Singapore? Most couples spend between $30,000 to $50,000 on their big day. A lavish event can cost up to $100,000.

The cost of a wedding depends on the following:

  • Bride’s gown and groom’s suit
  • Make-up artist and hair stylist
  • Photography and videography
  • Catering services
  • Wedding venue and reception grounds
  • Venue decorations
  • Wedding rings
  • Honeymoon

Advantages Of A Wedding Loan 

Before you know how to get a wedding loan with bad credit, it is crucial to understand the benefits of this loan. Here are some reasons to apply for a loan for wedding:

You Will Receive A Lump Sum At Once 

When you qualify for a wedding loan, you will receive the cash at once. This helps you to plan your wedding smoothly without constraints.

You will also be able to pay your service providers on time. When you don’t have the cash, you may miss out on limited offers that can lower your wedding costs.

It Is Easy And Quick To Access A Wedding Loan

Getting a loan from a licensed money lender like GS Credit is easy and fast when you have the necessary documents.

It takes a few minutes to send your application online and hear back from the loan officer.

Affordable Interest Rates

When taking out a loan, one of the factors to consider is the interest rate.

When you approach a licensed money lender for a loan, you can be assured it will abide by the moneylending rules because the Ministry of Law regulates the industry.

Banks charge lower interest rates as their checks are more rigorous. You need a good credit score to get a bank loan.

Licensed money lenders have more lenient requirements, but charge higher interest rates to compensate for the risk undertaken.

How To Get A Wedding Loan With Bad Credit 

Is your credit rating close to 1,000, and getting a loan is becoming a headache?

Here is how to get a wedding loan with bad credit:

Improve Your Credit Score 

If you want to take out a wedding loan from a bank in Singapore, your credit score should be near 2,000. If it is not, you may need to work on your credit score first before applying for a wedding loan.

You can improve your credit history by:

Making timely loan payments: Having a bad credit score could mean you have been defaulting on your loans. However, it is not too late.

You can start by repaying your monthly installments on time. With some discipline, you can improve your credit score over time.

Consolidating your debts: If you have multiple debts, you can combine them into a single lower loan at a lower interest rate. As a result, it will become easier to pay your loans on time and improve your credit rating.

Don’t Keep Applying For Loans 

Avoid sending numerous loan applications within a short period. This will indicate that you need a loan urgently and already have a bad credit score.

As a result, lenders will deny your loan request because your chances of defaulting are high.

Instead, only send another wedding loan application if a financial institution rejects your first application. Also, do in-depth research to apply for wedding loans that you have a high chance of securing.

Choose A Licensed Money Lender

It is difficult to get a bank loan if you have a bad credit score or don’t have a credit history.

However, a licensed money lender like GS Credit is an excellent option because its requirements are more relaxed. This means you may have a chance.

A legal money lender will evaluate your case and provide the best loan package to cater to your wedding cost. But be sure to only choose a legit money lender from the Ministry of Law’s list of licensed money lenders in Singapore.

Get A Home Equity Loan 

Do you have a property and need money for your wedding urgently? You can get some money against the equity of your home from a bank or licensed money lender.

However, you need to be careful with the repayment of this loan because you have pledged your home as collateral.

Where And How To Apply

You can get wedding loans in Singapore from the following lenders:

Banks 

Banks in Singapore have certain eligibility criteria when it comes to loans for wedding. For example, you need to be a permanent resident, at least 21 years old, and have a good credit score.

You should also provide your name, age, financial information, employment details, and income.

Licensed Money Lenders 

Licensed money lenders are more flexible than banks. Therefore, these lenders are the perfect option if you do not meet the banks’ requirements.

When you work with a licensed lender, it can provide a tailor-made loan at a competitive interest rate, depending on your financial capability.

Applying For A Loan

In this digital era, you can apply for a loan online using your Singpass. All you need to do is visit the lender’s official website and find the application page.

Nex, submit the required details and documents. From there, wait for your application to be approved.

If you qualify for the loan, the lender will notify you. You need to sign a loan contract before you get the money. Check all the terms and conditions carefully and make sure you know what you’re getting into.

Which Bank Is The Best For A Wedding Loan? 

Since you have understood how to get a wedding loan with bad credit, you may be asking which bank has the best wedding loan. There are plenty of wedding loan packages available.

You can check out the following options:

  • Standard Chartered CashOne Personal Loan: 3.48% interest rate (7.3% EIR)
  • Citibank Quick Cash (new loan customer): 3.45% interest rate (6.5% EIR)
  • HSBC Personal Loan: 3.4% interest rate (6.5% EIR)
  • UOB Personal Loan: 3.48% interest rate (7.17% EIR)

Getting A Wedding Loan With Bad Credit In Singapore Is Possible

If you are planning a wedding in Singapore, you may need a wedding credit card to pay the costs.

However, it is challenging to secure a marriage loan Singapore if you have a bad credit score. Therefore, you need to think about how to get a wedding loan with bad credit.

Licensed money lenders and credit unions are excellent options. These lenders do not dig deep into your credit score. However, if you want to work with a bank, you will have to improve your credit score first to get a loan for your wedding.

If you are looking for tailor-made wedding loan packages in Singapore, GS Credit is the place to go.

We provide loans at some of the lowest interest rates, and with reasonable terms and conditions. Contact us now or apply for a loan using your Singpass from the comfort of your home.

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