The average American wedding costs nearly $39,000. A growing number of newlyweds-to-be are relying less on their families to pay for their dream ceremonies and are instead choosing to go into debt.
These young couples, dreaming of “Instagramable’“wedding venues, cigar bars, candy buffets, photo booths and the like, are now spawning a new breed of personal debt championed by Silicon Valley tech start-ups — millennial-targeted wedding loans. Lenders say they are issuing double the amount of wedding-branded loans in 2019 than a year earlier,
Upstart promotes its use of artificial intelligence and machine learning to measure nearly 1,500 data points to determine an applicant’s ability to pay back a loan. Rather than looking at a credit score alone, the company evaluates education, area of study and job history when considering applicants.
The average wedding loan Upstart approves is $11,000 for a three-, five- or seven-year term. The annual percentage rate, which is the rate charged for borrowing and represents the yearly cost of the loan, can fluctuate between 5 percent all the way up to nearly 36 percent, depending on the applicant.