After the wedding, comes the honeymoon. It’s however a challenge if you have spent all your savings on the wedding and you have nothing left. At this point, getting someone or an institution to finance your honeymoon is one of the options worth considering.
Institutions financing honeymoon loans include banks, credit unions, and online money lenders. They attract high interest if you have bad credit and low if you have a good credit history.
What are the Requirements?
- Have a credit score of 640 and above. With poor credit history, your loan will attract a high interest rate.
- For this application to go through, you must provide information about your annual income.
- Different lenders consider different income levels, with some accepting a minimum of 10,500 USD per year. Others may approve your loan if you have an income of not less than 25,000 USD every year.
- The maximum debt-to-income ratio should range between 35% to 40% to apply for a honeymoon loan with bad credit. If you have less than 35%, it’s hard to acquire a honeymoon loan.
The Application Process for Honeymoon Loan
For you to get a honeymoon loan, you must follow the five steps highlighted below:
- Prepare all the loan application documents. Ensure you know your maximum debt-to-income ratio and check your credit history at credit bureaus.
- Forward all your necessary information to the lenders to get prequalified without making them get the information the hard way. It will allow you to get more loan offers from various lenders without a credit impact.
- You will receive many offers from lenders. Take your time to compare them by considering their interest rates and other loaning terms before choosing one.
- Complete the application process by providing proof of income and savings through your bank statement.
- Once approved, the lender will send the loan into your bank account within a few hours.
Financing a honeymoon is not a bad idea if you have a high income because you could pay for it. With low income, it may impose on you a financial burden leading to a bad credit score.
However, you can use alternative ways to ensure you have your honeymoon funding is sorted out well. For instance, you can just wed but delay your honeymoon to save some money or use low-interest credit cards. Apart from these, you can also plan to travel during a slower season to reduce the overall cost.