Post # 1
My fiance and I have been making purchases for the wedding and paying for them as we go along. I think we can continue to do that without touching savings until it comes to paying for the reception, the largest cost of course.
I was just thinking this morning maybe we should consider putting the reception costs on a zero interest credit card and reduce the hit on our savings account for six to 12 months. We have the cash so it’s not like we are taking out a loan, I was just thinking this might be a smarter choice.
We each have our own credit cards now and we pay them off in full each and every month and we’ve been doing that for a long time so I’m not concerned we’d let the card get out of hand and not pay it off as soon as necessary to avoid fees.
Another plus might be that we are having our reception at a restaurant, so maybe we could find a rewards card with higher rewards for restaurant purchases.
Does anyone have any experience with no interest cards or any recommendations for a card? Is this a bad idea?
Post # 3
Hmmm, do you have a financial advisor or trusted friend with personal finance expertise that you can talk to about this? If you have the cash to pay for the reception, I would normally say don’t do it on a cc. But I understand the importance of keeping up your savings right now.
I guess we did something similar for the honeymoon. We had the cash in our savings account to pay for all of our spending moeny (meals, gas, activities, etc…) but decided to get an AMEX card instead. The platinum card has a great travel rewards program. Since we have a lot of plans to travel in the next few years, we thought it would be better to start saving up those points now because you can use them on plane tickets, hotel stays, etc…, and gas, groceries, and restaurants get double rewards points. Also, we thought bringing one cc to Europe was a lot safer and more convenient than carrying around wads of cash or getting traveler’s checks. We stuck to our budget and last week we paid the bill in full from the cash we had set aside for the honeymoon.
In theory, I see no problems with paying for the reception on a no interest cc and then paying it off within a year. It seems like the best of both worlds; you can have your reception and keep your savings. As long as you have the cash on hand to pay off the bill, even if you make monthly installment payments instead of immediately depleting your savings, I guess it would be ok. I still think you should talk to someone with in personal finance, though, because that person would probably be able to lay it all out for you.
Post # 4
I don’t really see why you shouldn’t. It sounds like you are financially stable and this would help save your savings just in case something happens so you don’t have to worry as much. Just remember that you shoudn’t have more than 75% of your total line of credit used at one time…. It can hurt you more than help you. And your credit report actually shows what your biggest balance was over the life of the card… It is crazy. If you do go over that mark it shouldnt be terrible just this once. I think this is all I have right now. Good Luck!
Post # 5
You sound like you are a very financially responsible person and if you have the money in an interest bearing account, you will be making money on it throughout the year.
I did this once with tuition in college b/c my loans weren’t going to come in before tuition was due and my FH and I did this with some furniture. I just made sure to pay it off a month or two early so that we wouldn’t get hit with all that interest for being a day late. Each time, we had the money sitting in a savings account making money and we made sure not to touch it for any reason.
One thing I would be careful about is your credit score. Are you planning to buy a house any time soon? If so, you want to make sure that you aren’t near your limits on your credit cards. If you have 20K of credit available to you and a 18K combined balance on your credit cards it could look bad.
Post # 6
Based on your post, it sounds like there is no reason why you should not do this. Just pay off X amount per month so that you keep on track and don’t get hit with big interest rates in 6-12 mos. I would suggest you open a card with reward points you know you will use (Delta, Southwest, Marriott)!
Post # 7
I don’t think thats a bad idea either! On these boards it seems likes credit cards are the devil… but I disagree as long as you’re responsible. I totally second the idea to put it on a credit card with some sort of rewards program.
I actually put EVERYTHING on my bank credit card that is linked with American Airlines & pay it off the end of the month. We’re trying to load up on miles for our honeymoon & we’d also like to fly 2 of his relatives out here who don’t have a lot of money.
It takes a lot of discipline though to pay it off automatically (or in your case monthly). You know yourself if you’re capable of pulling it off!
Post # 8
My Fiance and I are actually doing this. We got a 0% interest card that had it for a year and also has high rewards (I think 3points on the dollar) for purchases such as food (yey we have ours at a resturant too) and are planning to pay it off as we go along but no later then when the 0% interest is up. I think its a great idea and it does push off a little of the burden all at once. Good luck!
Post # 9
You can definitely earn some great points. I agree kdlowery about not psending more than 75% of your limit, but if you’re going to pay interest and you can earn lots of rewards, I don’t think its a bad idea!
But I would talk to a financial advisor to be sure about negative side affects for taking out a new credit card and putting so much money on it.