With the wedding season around, many people are getting married. Indian weddings are a grand affair which is done with great preparation and involves a lot of expenses. If you or your near and dear ones are getting married, get ready to bear huge expenses on catering, pre-wedding shoot, make-up artist, photographer etc. Though all of us save for our special occasions and emergency situations, still savings alone may not be enough. In such a situation, you can use an Axis Bank credit card to pay for your wedding expenses.
Benefits of Using a Credit Card for Wedding Expenses
All credit cards offer attractive reward points on purchases made using a credit card. With every credit card spending, you earn reward points which can be redeemed at any select partner stores. You can cut down your honeymoon expenses significantly on using your credit card wisely. With a little bit of planning while paying for wedding expenses, you can earn a good amount of reward points which can be utilized later on for travel etc.
Interest-Free Credit Period
In case your past savings are not enough to meet your big day expenses and you require additional funds for the same, then you have two options, you can either take a personal loan or use a credit card. Using a credit card for meeting wedding expenses is a better option as it comes with an interest-free period, during which no interest is charged from credit card user. This interest-free period will vary across credit card issuers. If in case due to any reason you fail to pay off your credit card bill on time, then you will have to pay interest charges on the outstanding amount. Using a credit card for wedding expenses is a better option if you have a steady flow of income and you can manage to pay all your bills on time.
Keeps a Track of Your Spending
Using a credit card helps you to keep a track record of all your spendings. Payments which are made through your credit card are recorded in your monthly credit card statement. It will include time, date, amount and name of the vendor.
Use Credit Limit as per your Requirement
You are free to use the credit card limit as per your choice. Unlike loans, a credit card gives you the flexibility to use it for any purpose. Additionally, if you require only a small amount of money a credit card is the right option for you as at a times it is difficult to secure a smaller loan amount. It is wiser to borrow a loan amount 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.
Negatives of Using a Credit Card for Wedding Expenses
High Annual and Joining Fees
If you select a credit card which carries a high annual or joining fees, then rewards you earn are only a myth. The high annual fee of the credit card will offset the benefits of reward points. So, before you select a credit card, check and compare joining fee and annual fee charges across different lenders and different card categories.
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 situation, either you have to forcibly spend extra money to redeem reward points or you cannot redeem your reward points.
Credit card carries the highest interest charges in comparison to any other type of loan. In case you do not pay your credit card bills before the due date, you have to pay interest charges on the outstanding bill amount. So, use a credit card only if you have a steady flow of funds to clear off your debt before the due date.
Keep the above-discussed points in mind before you can apply for a credit card to meet your dream wedding expenses. It is advised to read credit card terms and conditions carefully before applying for one in order to avoid any confusion later on. You can apply for a credit card through various online aggregators.