Tips on Using Credit Cards During Wedding Season/Wedding Planning
Pakistani weddings are grand. There are colors, food, fun traditions and a lot of fun! The wedding season is currently in full swing, and along with it, the festivities. This season brings with it a flurry of happy activities, the highlight of which is shopping. The markets are full of happy families shopping their hearts out for the merry bride and groom, the marriage halls and banquets are booked to capacity and honeymoon destinations are being sought at rapid rate. In all of these endeavors, credit cards play an important role. But the question is, when you have the option to pay for everything in cash, then why should you use a credit card? There are several ways using a credit card can be more useful during the wedding season than cash, such as:
- You can get discounted prices in the form of cash-backs while doing the wedding shopping. In a time where every penny counts, such rewards can help you save money and put them to other uses where needed
- It provides more consumer protection through the option of disputing purchases. Wedding season is full of uncertainties, such as the phool-wala cancelling at the last minute and the caterer botching up the menu. Also, a lot of these arrangements are paid for, either partially or fully, in advance. Paying through a credit card ensures that in case of a quality of service or non-delivery issue, you can raise a purchase dispute with your credit card issuing authority and there will be some hope, if not all, of recovering your money
- Credit cards offer more financial flexibility in the face of unexpected expenses. The wedding planning pathway is full of unexpected potholes (read: expenses) and there is not always enough cash lying around to meet such expenses. Credit cards come to the rescue in such emergencies by fulfilling the payment, but it also creates a future liability of having to pay off the said purchase eventually; so one needs to be careful in such matters and evaluate each purchase against the budget
- Credit cards offer definitive proof of payment in case of any future disputes arising from the vendors’ side, something which cash may not be able to do
Tips on Using Credit Cards Effectively for Weddings:
Below are some tips to using credit cards to your optimal advantage during this wedding season:
- Categorize your spending:
This will let you evaluate which expenditures are best paid through credit cards to make use of the rewards system in the most beneficial way.
- Use credit cards for big/risky expenditures:
This includes any deposits/advance payments, online payments, and any other expenditure that is deemed big enough to burn a sizeable hole in your bank account or one that you feel is risky in terms of quality or reliability. This will allow you to make use of the disputed purchase option and potentially get your money back in case of a mishap.
- Travel expenses:
Use credit cards for all your wedding related travel expenses. Almost all credit cards in Pakistan offer travel insurance on using cards for travel related expenditures, which is a very useful perk for couples planning a honeymoon. Also, credit cards come with roadside assistance and car rental insurance included in the travel insurance package, which can help many a newly wed couple make their first trip free of unnecessary worries.
- Make optimal use of the rewards system:
If you are using a credit card with a points based rewards system, make sure that you utilize those points optimally. For example, some credit cards offer multiple ways to redeem the accumulated points from purchases, such as miles, gift cards or the option to use them to pay off your current credit card bill. Analyze your situation as well as your reward options and decide which one would suit you best.
- Use your card as a tracking tool:
Credit cards can be excellent tools to track your spending and keep it in check. For this to work, use a single (or as few as possible) credit card/s dedicated to wedding expenses only. This would not only help you keep up with your expenditure but also make it possible for you to evaluate your spending with your budget and ensure you don’t go overboard
- Keep your spending in check through your credit limit:
You have set a budget and are determined to stick to it, but the wedding season is not bound to it. One often goes over board and over-budget while planning for a wedding, and hence it is important that you have a visual representation of the expenses in front of you to remind you of your budget and limitations. One of the ways you can do this is through either reducing your credit limit, which takes a lot of hassle, or requesting a lower spending limit on your card. You can also ask your bank to enable notifications on anything above a particular amount spent.
Wedding planning may seem grand and full of the same repetitive actions with little change, but it is in fact full of many little nuances which can stump you at the last moment. Using a credit card with a comprehensive plan in a wise way will ensure that the little things are taken care of so that the big days can be enjoyed to the max. To know more about different credit card plans and options available and choose the best one for you, visit www.karlocompare.com.pk. Happy wedding!