How to fund your wedding with a credit card

It’s no secret that weddings are expensive. The average cost of a wedding in Canada is around $30,000, with the majority of couples reportedly covering the cost themselves.

The cost today could be more or less, but either way, there is a good chance that you’ll need a large sum of money to pay for your big day. If you’re considering using a credit card to help cover the costs, read this guide to learn about your options and the key details you’ll need to consider when deciding if paying with plastic will work for you.

Types of credit cards you could use to fund your wedding

Photography, venue hire, food and flowers are typical wedding expenses. Whether you’re using a low rate credit card so you can buy now and pay later, or a rewards credit card so you can honeymoon on the points, we look at the advantages and disadvantages of each type of card.

Low or no interest credit cards

Low or no interest credit cards are characterized by either a low ongoing purchase rate of interest or low or no interest on purchases for a limited period of time. For expenses relating to a specific event, such as a wedding, you may want to consider credit cards with 0% intro APR on purchases for more than one year. This allows you to charge the cost of purchases like catering to the account when you need to and gives you time to pay off the balance without accruing interest.

Dive deeper: Compare low-interest credit cards

Rewards credit cards

If you use a rewards credit card to pay for your wedding, not only could you earn points on your necessary wedding costs, you could then use the points to redeem rewards to pay for the cost of domestic and overseas flights, accommodation and travel packages for your honeymoon. Plus, some cards offer bonus points on signup, which could really help bolster your points balance.

There are 4 main types of rewards cards on the market: frequent flyer credit cards, hotel credit cards, cruise line credit cards and rewards credit cards. The first 3 let you earn miles or points that you can mostly use toward a specific brand of airlines, hotels or cruise lines, while a rewards credit card gives you points with a variety of redemption options.

Some of these cards also include perks such as complimentary travel insurance, which could save you money on purchased insurance for your destination wedding or honeymoon. As rewards credit cards tend to have higher annual fees and interest rates, it’s important to make sure that the value of the rewards you redeem outweighs this cost.

Dive deeper: Compare rewards credit cards

High credit limit credit cards

Some credit cards offer higher credit limits than no annual fee and low rate credit cards. Whichever card you choose, just be sure the credit limit is high enough to cover your expected expenses. You can view the product’s maximum credit limit by reading our credit card review and application pages.

Note that the actual credit limit you get is based on your credit score, utilization rate and other factors. If you already have a card and can’t get another one with a higher credit limit, you may be able to increase the limit on your existing card, assuming your credit history is satisfactory.

Balance transfer credit cards

If you have already paid for some of your wedding costs with a credit card, you may want to consider a balance transfer credit card. This type of card can save you money on interest repayments by giving you a 0% intro APR for a limited period of time. Use your existing credit card to pay for your wedding expenses and apply for a balance transfer credit card so you can transfer the debt and get a lower interest rate.

The intro APR period starts from when you activate the card. The balance transfer rate of interest reverts to the purchase rate or cash advance rate of interest, which will be applied to any remaining debt at the end of the promotional period.

Dive deeper: Compare balance transfer credit cards

Mistakes to avoid when using a credit card for your wedding

• Spending more than you can afford to repay.

  Credit cards can make it easy to forget about debt, but charging more to the card than you can afford to repay is going to put you on the financial back foot down the track.

• Late repayments.

  Late payment fees are the obvious consequence of late credit card repayments, but if you have a 0% intro APR period, you could lose it and incur a penalty APR instead. You could end up owing more money than you could repay.

• High interest charges.

  If you use your credit card to finance your wedding and carry a balance, you may end up with a bigger debt due to interest charges. Keep this in mind when considering your budget and comparing credit card options, so you can choose a card or other payment method that’s affordable for your circumstances.

Bottom line

A credit card is a short-term cash flow tool that could help finance your wedding. Features such as interest-free periods, rewards and balance transfers can help take the financial burden off your special day. But remember to consider the ongoing costs of the card and the standard rates and fees that could apply at the end of promotional periods.

Before choosing a credit card, make sure to compare your options to find the best fit for your financial needs. Alternatively, you may want to explore other financing options for your big day such as personal loans for weddings.