Which One is Good for Wedding Expenses?

Credit Card or Personal Loan: Which one is Good for Wedding Expenses?

With the wedding industry in India growing at an average of 25% each year, couples look for external financing options to finance their nuptials today. Two most versatile financial products in the market are credit cards and personal loans.

While credit card usage in the country is relatively new and increasing, personal loans have been a trusted option since long. During personal financial needs, people can easily avail personal loan on credit card.


  • Around 10.3 million new credit cards were issued within May 2018 and May 2019.
  • Personal loans saw a 20.4% growth between February 2017 – 2018.

While both provide access to fund easily, they are dissimilar in various ways and fulfil requirements differently. A thorough evaluation is, therefore, essential to choose the most appropriate product for wedding expenses.

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Personal Loans vs Credit Cards: A Comparative Study

  1. Personal loans are usually unsecured and require no collateral to avail the funds. Lenders disburse the entire sanctioned amount in the borrower’s account at a time. The latter can withdraw funds whenever necessary.

Credit cards are also generally unsecured and come with a credit limit, which is the maximum amount a borrower can utilise. Looking similar to a debit card, a credit card makes online payments more lucrative. You can utilise the card to make purchases and earn attractive reward points which can be redeemed later to avail discount, cash back, etc.

  1. Another vital point in credit card vs personal loan is repayment. Borrowers pay EMIs towards the personal loan repayment. These EMIs comprise both interest and principal parts, which continues throughout its tenor. Companies issue credit card statements every month, highlighting all the transactions on the previous billing cycle. Users need to pay off the total bill amount within a given due date of that month. Failing to do so attracts penalty in the form of credit card interest rates, and the outstanding due gets added to the next month’s statement.
  2. While interest rates on personal loans are competitive, those on credit cards are much higher. It is mandatory to pay the interest in case of a personal loan, irrespective of its usage. On the contrary, no matter how much is utilised from the available credit limit, borrowers pay credit card interest rates only when they miss the due date.  Note that credit cards come with an interest-free period of 25 to 30 days after bill generation. Users can easily clear the dues within this span at a 0% rate of interest.

Apart from these, few other features make credit cards more beneficial than a personal loan; these include –

  • Borrowers earn exclusive reward points on almost every transaction and achieve major milestones.
  • Reward points, when redeemed for discounts, coupons, gift vouchers, etc., can save significantly on next purchases. There are also several other things to do with reward points.
  • Using credit cards for wedding purposes can earn huge cashback, making expenses more affordable.
  • The best part is credit cards come with travel rewards. So, a couple can even utilise a card when travelling post their wedding and enjoy lucrative travel benefits.
  • Credit cards are one of the best financial tools to help improve one’s credit score rapidly. Every on-time bill payment shoots up the CIBIL score and builds a strong credit profile. You have to know the various ways to use a credit card for CIBIL score improvement.
  • With rapid increase in cybercrimes, credit cards are evolving a safer financial instrument as they come with added security features, built-in fraud protection facility, etc. against malware, identity theft and unauthorised access.

Most weddings have a well-thought-out budget; it’s easier to keep a track on all expenditures with credit cards.

Those looking for one can opt for cards like the Bajaj Finserv RBL Bank SuperCard, equipped with robust security and various industry-first features. Eligible applicants can easily avail the card through an online application form.

Bajaj Finserv also brings their customised pre-approved offers on credit cards and various other financial products like personal loan, business loan, home loan, etc. Such schemes not only make the process easier but also less time-consuming. Submit only a few details to check your pre-approved offers online.

In credit card vs personal loan, the former emerges as a better choice to cover diverse expenditures of a wedding. Users can also avail a personal loan against the unutilised limit of a credit card to address larger requirements efficiently. However, they must ensure to use it responsibly and pay off the dues in full every month.

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