You can use a credit card to cover some wedding costs. And for some people this may be a smart, flexible approach.
But it's also a risky one. It's easy to get into debt with a credit card, especially with the high stress and costs that come with a wedding.
The average cost of an Australian wedding is $36,000, according to Moneysmart. Finder research shows the average couple's parents contribute around $6,000.
Can you pay for a wedding with a credit card?
When you break it down, a wedding is usually a series of big expenses rather than one giant sum. While you can get package weddings, most people pay separately for major costs like the venue, food, drinks, dresses, flowers, the photographer, car hire and so on.
Many vendors will take credit cards. But some won't. Venues often require a bank transfer instead. That way there's no risk of a chargeback from the card.
Some vendors charge a fee if you pay with a credit card. So always check before you decide to pay with a card.
What are the benefits and risks of paying for a wedding with a credit card?
Benefits
You can pay for multiple large expenses right now and pay them off later. This gives you the option to book a photographer or hire a venue right now even if you don't have the money to pay for it.
Interest-free days on a credit card mean you can buy now, and avoid any interest charges at all if you pay it off within the interest free period. For some cards you can get up to 55 days interest free.
With many credit cards you can earn points on your spending. Paying for expensive wedding items or services with a points-earning card can get you thousands of points to spend on flights or other rewards.
Credit cards offer buyer protection in the event of fraud or a vendor who fails to deliver the promised item or service.
Risks
Credit cards let you spend money you don't have and worry about it later. They're a really easy way to get in financial trouble. You could spend way more than you can afford and then struggle to pay it back.
Credit cards have interest rates as high as 20%. If you pay the card balance off before the statement period you won't get charged interest. But if you've made some big wedding purchases this might be hard to do.
If you don't stay on top of your finances it's easy to miss a due date for a repayment and start getting charged interest even though you planned to pay the card off on time.
How to get the most out of paying for a wedding on credit
Spread out your purchases. Break your wedding expenses down and try to spread them out. You can take advantage of the interest-free days many cards offer by making a big purchase, paying it off just before the interest charges kick in, then covering the next big expense.
Set up a payment plan to cover your costs. If you have to take a longer time to repay all the wedding expenses, calculate how much the interest is costing you and make a plan to repay it each month. Don't just ignore the debt by paying the minimum each month.
Maximise your points earning potential. Many credit cards offer mountains of bonus points to new customers who spend big. A wedding could be the perfect opportunity to get a new card, cover your wedding costs and spend enough to unlock points you can spend on flights for the honeymoon.
Set an appropriate credit limit. If you have a lot of big expenses to cover, make sure your credit limit is high enough to handle it. You can apply for a higher credit limit and then lower it after the wedding.
Example: How long it can take to pay off your wedding
The overall cost of your wedding, your credit card repayments and the interest rates and fees all have a big impact on how long it takes to repay.
To give you an idea, let's say you had a credit card with a 19.94% p.a. interest rate. In both scenarios, you aim to pay off your wedding expenses in 12 months.
Here's how it would look with two different budgets:
Low-cost scenario
Credit card wedding spend: $5,000
Interest rate: 19.94% p.a.
Monthly repayments: $463.03
Total months to repay: 12
Interest costs: $556.35
High-cost scenario
Credit card wedding spend: $20,000
Interest rate: 19.94% p.a.
Monthly repayments: $1,852.12
Total months to repay: 12
Interest costs: $2,225.39
In the high cost scenario you're paying almost $2,000 a month and you still end up paying over $2,000 in interest.
You could stretch this out further and pay it off in 24 months. You'd have to pay $1,017 a month. And the interest costs over 2 years would be well over $4,000.
These two scenarios show how different wedding budgets, credit card features and repayments can lead to very different timeframes and interest costs.
Planning ahead can help you keep credit card costs down (and avoid years of debt). So once you know your wedding budget, work out how much you'll put on your credit card and what you can afford to repay each month.
How can I avoid getting in too much debt?
Set a budget and stick to it. Easier said than done, but you really need to work out what you can afford to spend before you start flashing your card around.
Stagger your purchases if you can. An advantage of a credit card is that it gives you money when you need it and you can spend flexibly. If possible, pay for some expenses earlier and others later, allowing you to pay off the earlier costs (and taking advantage of interest free periods) before dealing with other purchases.
Don't pay for everything with a credit card. Paying for some things with cash reduces the amount of debt you'll have to take on.
Choose the right kind of credit card for you. More on this below but in short, there are cards for big spenders and there are cards for more budget conscious customers.
Make a clear plan to repay the debt on time. Check your card statements, figure out when payments are due and set reminders to pay them. Don't spend and forget about it.
Don't withdraw cash using the card. You can use a credit card to withdraw cash from an ATM. But it's a bad idea. There are cash advance fees for doing this, and you get charged a really high interest rate.
What kind of credit card should I use to pay for wedding costs?
Every couple is unique. And the kind of credit card you need depends on your finances, spending habits and goals.
0% interest credit cards
Pay for wedding expenses and get an interest-free introductory period that's usually between 3 and 15 months. Useful for people who know they won't be able to pay off all their purchases in a month or two.
Low rate credit cards
If you need more time to repay your wedding expenses, a card with a low ongoing interest rate could help you save on interest and budget for repayments. Useful for people who will take some time to pay off the card and don't care about points or other benefits.
Frequent flyer credit cards
Want to earn Qantas or Velocity Points while paying for your wedding? You could use a frequent flyer credit card.
These cards are really aimed at bigger spenders. People who could probably afford to pay for everything with their savings but want to earn points. These cards have high annual fees and high interest rates. They're a terrible choice if you can't pay off the wedding costs on time.
Rewards credit cards
Similar to frequent flyer cards, a rewards card lets you earn reward points on your spending. But unlike a frequent flyer card, rewards cards are tied to a bank or credit card rewards points program.
You can use these points on shopping, gift cards, discounts, or convert them to frequent flyer points. As with frequent flyer cards they're not for budget-conscious spenders because they have higher rates and fees.
Frequently asked questions
As soon as you can, talk to the venue, celebrant, photographer and other wedding vendors about your options. In most cases, you'll be able to work out a different date or get a refund (but you may lose any non-refundable deposits).
If you're just starting to plan your wedding now, you could also look at wedding insurance. There are options for domestic weddings as well as international ones – although most currently have updated details about what is and isn't covered due to coronavirus.
If you can't come to an agreement with the vendor, you could contact your credit card company and see if it's possible to request a chargeback to your account.
If using your savings isn't an option, an alternative to using a credit card is to get a personal loan. The advantages of using a personal loan are that your repayment term is fixed and you'll have a clear schedule of repayments to make.
With a credit card if you don't pay the balance off the debt can just continue sitting there costing you more money. And with a personal loan you can borrow a large lump sum. Credit cards often limit how much you can spend in a month.
The downside to using a personal loan is that it's less flexible. Let's say you borrow $20,000 over 2 years with a personal loan. You spend $3,000 to hire a photographer, then a few weeks later you spend $4,000 on a dress and accessories. Then a month later you pay a deposit to book a venue.
Regardless of how much you spend, you're paying interest on the full $20,000 you've borrowed. With a credit card you pay interest only on the money you've spent.
Everyone's wedding plans are different – and so are the ways people pay for them. But you shouldn't use a credit card to pay for everything because of the risk of high interest charges and spiralling debt.
Bottom line? Try to use savings whenever you can and have a clear idea of how long it would take you to pay off a credit card. If it's going to take more than a year, compare personal loans to see if you could save on rates and fees.
Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio
Richard's expertise
Richard has written 562 Finder guides across topics including:
Amy Bradney-George was the senior writer for credit cards at Finder, and editorial lead for Finder Green. She has over 16 years of editorial experience and has been featured in publications including ABC News, Money Magazine and The Sydney Morning Herald. See full bio
Amy's expertise
Amy has written 565 Finder guides across topics including:
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