iQuanti: Congratulations on your engagement! Now, how to pay for the wedding? Putting things on credit can help take on what is normally a very significant expense, and using your credit card spending to earn rewards on your charges can help reduce expenses. Whether you're looking for travel perks from a travel credit card, or just the best cash back credit cards on the market, let's review some of the main advantages and features of each when it comes to the big ticket costs associated with a wedding.
Welcome bonuses
Welcome bonuses are temporary or one-time bonuses that apply when you get a new credit card. Some bonuses offer a preset amount of points or cash back after you spend a certain amount. Others will match all the rewards you earn within your first year as a cardholder.
Regardless of the type of offer, welcome offers help you make the most out of big purchases. It's generally recommended to wait until you have a big purchase coming up to open a new card so that you can capitalize on that spending for a welcome offer — and a wedding fits the bill perfectly. Choose a welcome bonus that makes sense with the amount you plan to spend as well as your timing.
Categories that suit you
With both travel cards and cash back cards, bonuses may apply to certain categories, such as dining, airfare, or hotels.
If you're planning a pricey international honeymoon, a travel credit card may offer the best bang for your buck. Travel points or miles often get a better return when used for travel, even though you may be able to use them as a statement credit as well.
For cash back cards, consider where you're likely to spend your money leading up to your wedding. Travel? Gas? Online shopping? Try to get the best cash back rate for your highest spend categories.
How fast do you want to pay off your wedding?
Everyone gets a little daunted by the sheer amount of wedding expenses, but a low interest rate or introductory APR rate can make the debt much more manageable. Some credit cards offer a lower APR for the first 6-12 months, which can give you a good head start on paying off the debt. Both travel rewards and cash back cards may offer this, but taking advantage of cash back credit card rewards will only accelerate the process of paying off the debt.
Other factors to consider
The following factors are not necessarily exclusive to cash back or travel rewards cards, but are worth considering especially for credit cards that you will use for your wedding:
Purchase protection
If something gets stolen or damaged, purchase protection can ensure that you will get any necessary repairs, replacement, or reimbursement. Every card has a different purchase protection policy, if at all, and usually will have some sort of annual fee. But if you make a large purchase with a cash back credit card, the cash back could offset the annual fee.
Return protection
A return protection policy essentially extends the time that you can return an item, usually 30-90 days from the date of purchase.
The bottom line
Both cash back and travel credit cards can help you make the most of your wedding and also make it more affordable. One of the best ways to use a travel rewards card is to help you improve or pay for a planned vacation, such as a honeymoon. On the other hand, if you're looking at many different types of expenses that you hope to pay off faster, a cash back credit card is a great way to go. Either way, best wishes on this wonderful journey as you build your new lives together.
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Original Source: Is a Cash Back or Travel Credit Card Better for Wedding Purchases?
