The wedding hall is reserved, the band is lined up, caterer is chosen, flowers are ordered, and the dress is ready. There is just one problem—everyone needs to be paid and you don’t have the cash. Plus, you have bad credit. Need to cancel the wedding? No! Financing all your wedding expenses is now easier than ever with a peer-to-peer wedding loan.
The Impact of Bad Credit
First of all, let’s define the term “bad credit.” Credit reporting agencies compile a history of your credit interactions, such as all the loans and credit cards you have, the number of late payments you made or missed payments, if anything is in default and how many times you have applied for credit. From all of this information, credit reporting agencies determine your FICO score, which is then provided to potential lenders. Depending on the score that you receive, you will be determined to have “good credit” “fair credit” or “bad credit” in the eyes of any lending institution.
According to credit.com, “fair credit” is a FICO of around 600, poor credit is a FICO between 501 and 600 and anything below 500 is bad credit. However, banks are not looking for “fair credit” customers; they are restricting themselves to those with higher FICO scores. If your credit score is 600 or below, you will most likely not qualify for a wedding loan from a bank. In fact, with restricted lending practices and fewer dollars to lend, a bank is not inclined to lend to anyone with a FICO less than 660. If you happen to fall in the bracket between 620 and 660, you might be able to get a bank loan, but you can expect the least favorable interest rates and fee structure. You may also be required to provide collateral and/or a co-signer.
A Peer-to-Peer Wedding Loan Can Save Your Special Day
Even if you have bad credit, you can still obtain a wedding loan. Marketplace or peer-to-peer (P2P) lenders, such as Peerform, specialize in providing lending alternatives to the unfriendly and strict lending practices of banks. The days leading up to your wedding should be filled with eager anticipation of the day, not disappointments because you cannot cover your expenses. Once you have your wedding budget settled, apply for a peer-to-peer wedding loan even with bad credit.
A P2P platform is digital—available to you according to your schedule and accessible via your computer, tablet or smartphone. The loan platform is easy to navigate, interest rates and fees are reasonable, no hidden fees, your payments are automatically deducted from your bank account and, best of all, you can qualify with a FICO score as low as 600!
P2P lenders consider your creditworthiness in a radically different way than banks, making it possible to have the wedding of your dreams. You will have an answer to your loan application right away and the cash you need in your hand so that you can have the best food, music, entertainment, swanky venue and of course, video and photographs to keep the memories alive for decades into the future.