A wedding party is the most memorable day of your life and making sure that it’s all that you’ve imagined it to be, is one of the most important things you could do. Paying for such an event, however, is always more challenging than you’ve imagined.
One of the ways to go is to use a credit card to pay for the more expensive parts of the event and to pay off the whole sum over the agreed-upon time. It lightens the load somewhat and gives a couple more wiggle room during the first couple of years of their married life.
When Is It Reasonable to Do So?
It can be a good idea to pay for the wedding or parts of it via a credit card. The first thing to do is to inquire about what kind of credit cards are there and how they compare to one another. Sites such as Basta Kreditkort can be a good source of information on those sorts of issues.
It’s also useful to evaluate your finances and think about how much you can pay off at once. The best source of action is never to accumulate more credit card debt than you can pay off right away.
Getting an Extended Period
The most important feature of paying by a credit card such as those issued by Komplett Mastercard, and this goes for weddings and other expenses equally are in the fact that you’re getting an extended period in which to pay off the expense.
For the most part, this is about 12 to 18 months of additional time without adding any interest to the amount you have to pay. It’s possible to get more but that comes with interest.
Benefits for Specific Purchase
Some cards like those from Bank Norwegian Visa, offer a variety of different cashback programs depending on what type of purchase you’re making. It’s worth your while to investigate different programs and find those that you may use when purchasing items needed for a wedding.
Credit card companies go into deals with a variety of different businesses such as jewelers, catering companies, and venue management businesses. All of these might be useful when organizing a wedding and you may end up with a cashback deal.
There’s No Need to Borrow Too Much
When borrowing to pay for a wedding, chances are that you’ll borrow too much. That’s the case when taking out a small loan or when borrowing from a friend. This usually means you’ll have to pay all that you’ve borrowed and with banks, you’ll need to consider the interest as well.
When it comes to paying with a credit card you only get to pay what you’ve actually spent and that’s the only amount you need to pay off in the next year. It saves you the trouble of guessing what the amount will be and being wrong in the process.
The Credit Score
Using a credit card to make such a large purchase can affect your overall credit score and make it appear worse than it actually is. That’s something to consider before making a call. It’s especially important if you plan to make other long-term financial decisions as newlyweds.
There are numerous resources online that can show you how to calculate your credit score and that’s something that a young couple should do every once in a while in order to know where they stand financially. If you pay off the wedding in the agreed-upon time, the score won’t be affected that much.
Additional Fees
It’s also important to consider if there are any fees that you may end up paying in the long run. You’ll need to be aware of these and take them into account when choosing which card to use and should you use one in the first place.
For instance, some cards have an annual fee. If the timeline in which to pay off the wedding is longer than 12 months, you’ll also have to cover this fee. That may not be much but you don’t want it to come as a surprise either.
Unforeseen Expenses
Organizing a wedding is not a small affair and chances are that things may come up and ruin your plans regardless of how carefully you’ve made them. Sometimes this also means additional expenses may come up and push you over the budget you’ve planned for. This may be a good time to use the credit card to cover the additional expense.
It’s important that you have a strict budget and only use this option when you need to go over it. Try not to go over the 12-month period within which there is no interest rate or the rates are as low as they can be. That way you’re only covering for the unforeseen expense and paying it in installments.
Should You Do It?
This is the question all young couples should answer for themselves. The best way to manage using credit cards is never to borrow more than you could pay off at once. That way you’re not in debt, but only using the benefit of paying for something in installments and over a long time.
It’s also important to consider how big of a deal a wedding is for a couple. You want to go into it without too much stress and know that the financial issues will be sorted out over time and at your own pace. This will make the whole planning process that much easier.