When it comes to planning a wedding, some form of debt is usually included in a couple’s payment strategy. Our recent wedding costs and debt survey found that 74% of couples planned to take on some form of debt to pay for the big day.
The recent end of Promise Financial personal loans leaves brides- and grooms-to-be with one less borrowing option. The company, which focused solely on financing weddings through unsecured personal loans, stopped funding new loans in January 2017, reported Bloomberg.
Here’s what you need to know now that Promise Financial has discontinued its loan program.
Here’s what happened to Promise Financial personal loans
Owners of existing Promise Financial debt might wonder what will happen to their loans. And couples planning upcoming nuptials might be looking for alternative loans to pay for their wedding day.
Promise Financial personal loans were offered through its peer-to-peer lending platform. Consumers could use these loans to borrow between $3,000 and $35,000 with a three-year term.
Unfortunately, the platform ran into some bumps as it sought to grow business. The obstacles proved big enough that the company rebranded into bank technology and software firm DigiFi.
Since Promise Financial discontinued its personal loan program in January 2017 and offered three-year loans, some borrowers are still repaying their debt. Promise Financial’s website lists two ways existing customers can manage their accounts:
Log in to the Promise Financial online portal to access and manage your account.
Call Promise Financial customer service at 888-949-5195.
Top 3 wedding loan alternatives to Promise Financial
In general, couples should avoid borrowing to pay for a wedding. Even affordable debt will add to the costs of a wedding, thanks to interest charges. Couples should explore other options first, such as delaying their wedding date to save up.
If you must borrow for a wedding, be choosy about the forms of credit you turn to. Personal loans, for example, often provide lower rates and bigger savings when compared to other forms of debt, such as credit cards. Still, only 21% of couples planned to get a personal loan to pay for their wedding, according to our survey.
The first step will be to find a personal loan that can meet your needs. Here are three types of lenders that offer alternatives to Promise Financial personal loans.
1. Credit unions
Many credit unions offer affordable and flexible personal loans that you can use for almost anything, including covering the costs of getting married. Some credit unions even specifically offer wedding loans similar to Promise Financial personal loans.
Credit unions’ personal loan rates often beat those offered by banks and online lenders. They’re also more likely to have subprime borrowing options for applicants with less-than-stellar credit, such as cosigned personal loans or savings-secured loans.
2. Online lenders
You can also find affordable personal loans from a variety of online lenders. Which is right for you will depend on the terms you need, as well as your own credit score and qualifications for a loan.
SoFi and FreedomPlus are both smart options for well-qualified borrowers looking for the lowest rates.
LendingClub could be a good choice for couples who want to borrow a loan together.
Worried about your credit score? Upstart also considers your education, job history, and more when evaluating your application.
3. Traditional banks
Lastly, some traditional banks offer personal loans that can be used for weddings. Citizens Bank, for example, offers loans both in its branches and online. Couples can even apply for a Citizens Bank personal loan as co-applicants.
Citibank and Wells Fargo personal loans are other options for financing your nuptials. Few other major banks offer personal loans, however. You won’t be able to get Chase or Bank of America personal loans, for instance.
Avoid getting into credit card debt for your wedding
With the options outlined above, you have several alternatives to Promise Financial personal loans.
But you should avoid getting into credit card debt to finance your wedding. Among engaged couples, 61% expected to put some marriage expenses on credit cards, according to our survey.
Yet credit card debt is far more expensive than personal loans, according to consumer credit rates tracked by the Federal Reserve Bank. In February 2018, the average credit card rate for borrowers who paid interest was 15.32%. Comparatively, the average rate on 24-month personal loans was 10.22%.
If you’re interested in Promise Financial personal loans, you’re on the right track to borrow responsibly for your wedding. Just be sure to estimate your personal loan payments so you can afford to repay this debt after the wedding bells ring. Research and shop around for personal loans, and you’ll find one to meet your needs.
Interested in a personal loan?LendingTree allows you to compare rates from multiple lenders by filling out one easy form. Advertiser Disclosure
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|1 Includes AutoPay discount. Important Disclosures for SoFi. |
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