When To Put Wedding Expenses On A Credit Card
It’s no secret that weddings are EXPENSIVE. In fact, CNN Money estimates the average cost of an American wedding was $35,329. Just peruse these real weddings from $1000 all the way to $10,000,000. From down payments to venue fees to the honeymoon, costs across a wedding add up quickly. Just look at the the cost of being a bridesmaid in 2018. Credit is a very slippery slope, and if you don't haven any money then you should ((DEFINITELY NOT)) use credit cards.
If you do have money in the bank and with all these costs in mind, a credit card can be a great tool to use while paying for your wedding. Credit cards offer unique purchase protections. Also, depending on your card, you can earn rewards while spending for your wedding.
But before you start putting all of your wedding costs on a credit card, it’s important to understand how they work. Credit cards, when used responsibly, are a helpful tool. Just remember you must be able to pay your bills off on time and in full every month to avoid fees and debt. Reminder: If you do not have any money, you have no business using a credit card. So, when should you use a Credit Card for wedding expenses? The fine folks over at Credit Card Insider shared some tips with us. This is not a paid post, it's purely informative info from Credit Card Insider with a sprinkle of my personal opinion about credit debt.
The Benefits
Depending on your card, issuers usually offer benefits to their cardholders. Some of these are unique depending on your issuer, while others you’ll find across the industry. These benefits increase your confidence and provide you with a sense of security while shopping.
With a wedding comes the purchases of many different items, like dresses or gifts for your bridesmaids and other little things you may buy online. Weddings also often entail paying for a number of services, like planners, venues and catering.
When facing so many different types of purchases, a credit card can help give you peace of mind. Credit card companies usually will offer some sort of purchase and return protections. These protections provide insurance in case a purchase becomes damaged, stolen, or needs returning for any reason. Also, some issuers offer an extended warranty for their cardholders. Some of these allow the original manufacturer's warranty to double!
Most credit card issuers also offer some form of concierge or personal assistant services. These services make your life easier by helping you book reservations at restaurants or hotels, which can be perfect when planning your rehearsal dinner or honeymoon.
Check with your card issuer about what benefits they provide for you as a cardholder. They might take away some of your stress
0% Introductory APR
Many credit cards offer an introductory 0% APR period for any purchases you make. These cards provide you with a length of time where you won’t pay any interest on your balance as long as you make the minimum payments. Usually, the time period is somewhere between 6 to 15 months.
A 0% Introductory APR card allows you to treat these cards like interest free loans. You’ll have to be very careful on how you use them and pay them off as you go. But these offers can be ideal for those planning a large purchase or expecting to spend a lot of money soon, such as on all your wedding day expenses.
Always try to keep the balances on these credit cards as low as possible to keep your credit in good shape. Keep the date in mind when your 0% introductory period is over, as it will switch to a new APR. It’s advised to pay off the full balance before the 0% period runs out to avoid interest.
Rewards
There are many credit cards that offer rewards as you make purchases. These cards are a great way to earn cash back and perks while shopping and traveling for your wedding. Unlike certain cards that only earn points, the rewards you earn with cash back cards are credited back to your card or bank accounts.
The main benefit of using a cash back rewards card is that no matter what you spend, these cards will give you a bit of a discount. These cards usually provide somewhere between 1% to 6% cash back depending on the purchase. You’ll get money back from most purchases you make towards your wedding, which wouldn’t be possible if you were using cash!
Just Be Smart
As you’re planning your wedding, keep credit cards in mind as an option to gain rewards. With different protections provided on purchases, you’ll have an added sense of security. Using 0% introductory APR cards can be a great tool that allows you to pay off the wedding expenses over a longer period of time, while cash back reward cards offer you a percentage of cash back on every purchase you make for your wedding. Use credit responsibly. If you don't, then you're looking at 25% interest on your 35k+ wedding that you'll be paying off for the rest of your days.
Find lost of practical tips for your wedding here.