Using a credit card can help you pay for the wedding of your dreams. It can also make it easy for you to make wedding purchases beyond your budget and incur debt, so it's important to use your card with caution. This article will cover the pros and cons of using a credit card to pay for a wedding and strategies for using a card wisely:
- Advantages and disadvantages to using a card
- Three tips on how to pay for a wedding with a credit card
- Best credit cards for weddings
Pros and cons of using a credit card for your wedding
Using a card for wedding expenses has advantages and disadvantages.
Pros of paying with a credit card
Advantages of paying with a credit card include:
- Protection: If you need to dispute a charge, using a credit card can give you the protection that you don't have with cash. For example, if a vendor delivers a good or service that wasn't what was initially agreed on, you can dispute it within 60 days after receiving a bill with the charge in question.
- More time to pay: If you use a card with a zero percent or low APR rate, you'll be able to pay back the amount borrowed over time instead of having to pay for everything all at once (promotional APR periods differ but can be from 12-18 months.)
- New cardmember bonuses: Many cards have new cardmember bonuses to entice new customers. They require spending a certain amount within the first few months of owning the card which, if you're using the card to pay for a wedding, may be easy to accomplish — depending on the card and if the recipient accepts credit card payments. Certain purchases may not count towards bonus points and some aspects of the wedding may not allow credit card payments.
Cons of paying with a credit card
Disadvantages of using a card include:
- Possibility of going into debt: Unless you're disciplined and stick to a budget, it can be easy to spend past your means with a card and wind up in debt.
- High-interest rates: Credit cards have high interest rates. If you carry a balance month-to-month, interest can add up quickly and make your wedding expenses higher. A zero percent APR card has zero percent interest for an introductory period and could help combat this problem. Even if you qualify for a zero percent APR card, you'll still have to pay interest on any remaining balance after the promotional period ends.
- Raising credit utilization ratio: Unless you have a high credit limit or low wedding expenses, paying for a wedding with a credit card has the potential to raise your credit utilization ratio which could damage your credit score.
Three tips on how to pay for a wedding with a credit card
Here are three tips for using a credit card to pay for a wedding:
- Do your research: Research different cards and be sure to compare interest rates and new cardmember offers.
- Have a plan: Make sure you and your partner have a repayment strategy. Consider the time you have to pay back your balance and how much it would cost if you accrue interest.
- Monitor expenses: Make sure to check your expenses on a regular basis to ensure that you're sticking to your budget.
Best credit cards for weddings
You may be best off using cards with long, zero percent introductory periods that can give you extra time to pay off your balance or cards with attractive welcome offers. Keep in mind, some wedding expenses may not accept credit cards and some purchases may not count towards bonus points. For the purchases that do count, using a travel rewards card could potentially help you pay for a large part of your honeymoon.