Is It a Good Idea to Use Credit Card for Wedding Expenses
A wedding is a very important day in everyone’s life and the cost of weddings have experienced a steep rise. If you are planning to get married in near future and you are worried about the resulting expenses, you can consider using a credit card to pay for your wedding expenses.
But, before you do, here’s a compilation of all the pros and cons to consider before you decide to use a credit card to cover the wedding expenses, to help you make an informed decision.
Pros of using a credit card for wedding expenses
Credit cards come with attractive reward point offers.
You earn reward points on all your purchases made with credit card. You can save significantly on your honeymoon expenses if you use your credit card wisely.
With a little planning while paying for wedding expenses you can earn reward points and utilize them later on for travel etc.
Interest-free credit period
If you haven’t saved enough for your big day and you require funds, then you can either take a loan or use a credit card.
Using a credit card is better as it comes with an interest-free period, during which no interest is charged from credit card holder. This interest-free period varies across card issuers. If in case you fail to clear your credit card bills before the due date, then you will have to pay interest on the outstanding amount.
But taking a credit card is better if you have a steady flow of income and you can manage to pay your bills on time.
Keeps a track of your spending
Using a credit card you can keep a track record of all your spending.
Payments made through it are recorded in your credit card statement, it includes time, date, amount and name of the vendor.
Use the credit limit as per your requirement
You can use credit card limit as per your choice. You have the flexibility to use it for any purpose, unlike loans where you have to specify the purpose of your loan.
Additionally, a credit card is a good option for people requiring a small amount, as at times it is difficult to get a smaller loan amount.
It is wiser to borrow only the amount you require and which you can easily repay. So, taking a loan of the higher amount will be of no use, it will only add to your financial burden.
Cons of using a credit card for wedding expenses
High annual and joining fees
If your credit card carries a high annual or joining fees, then rewards are only a myth.
The high annual fee will offset the benefits of reward points. So, check the joining fee and annual fee before selecting your credit card.
The credit card comes with high-interest charges.
If you do not pay your credit card bills on time you have to pay interest charges on the outstanding amount. So, use a credit card only if you have spare money to clear off your debt before the due date.
Reward points redemption
Reward points earned on credit card can be redeemed only on select partner stores.
Also at a times, you can redeem those reward points only after you spend a particular amount using your credit card. In such a situation either you have to forcibly spend extra money to redeem reward points or you cannot redeem your reward points.
Keeping in mind the points discussed above you can apply for a credit card to meet your wedding expenses, but before applying read terms and conditions carefully to avoid any confusion later on. You can apply for a credit card through various online aggregators.
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