Planning your wedding is exhausting but at the same time exciting and highly satisfying. It’s natural to anticipate the day when are to tie the knot with your partner as you decide the decorations, guests you would like to invite, the venues, and what not. However, in between all this, you can easily forget some of the most important things. One of these is your credit report.
A wedding is all about fun and celebration. However, once it’s over you have to deal with the practicality of life- the finances and the new responsibilities. That’s the cold hard truth.
For instance, if you don’t have a house of your own yet, then after getting married you might want to look for home loans. This is where your credit report will become extremely important. Since weddings lead to numerous expenses, you must keep your credit score in check and make decisions accordingly.
The following are the top 5 tips to keep in mind as you plan your wedding:
A wedding involves a slew of expenses which is why accounting mistakes become common. So, for instance, if your caterer was supposed to charge Rs. 1 lakh they may accidentally charge Rs. 1.5 lakhs instead. Failing to check this will not only result in a financial loss, but it can ruin your credit report too.
By saving all the bills and receipts and keeping them in a folder you can cross-check them later to identify and fix the discrepancies.
Believe it or not, it’s not uncommon for the people to take a personal loan to pay for their wedding expenses such as venue booking, catering, etc. However, it can often be a terrible idea.
First of all, personal loans are expensive because of their “unsecured” nature. So, you can’t get a low-interest rate for a personal loan. Moreover, they are not considered a good debt like education loans or home loans because they don’t help increase your financial worth.
Another major problem with a personal loan for marriage is that it creates a big responsibility. When starting a journey with your life-partner you already get a ton of responsibilities. So, you are better off with one less responsibility. After all, you don’t want to end up in a situation where you need to learn how to get a loan without CIBIL check.
Credit cards automatically become the easiest way to access a large amount of cash during wedding time. However, you need to resist the temptation of using your credit cards for every single expense. Maxing out your credit cards, especially around the same time can be highly detrimental to your CIBIL score. So, no matter what, keep your credit utilization under control- preferably under 30%.
If you give your credit cards to your friends/family, then again make sure they are careful with the usage.
There are a plenty of things that you need for your wedding which can be bought online. Things like dresses, gifts, cosmetics, etc. can be easily bought online with your credit cards. The advantage of this is that you can save a lot of money through special offers and discounts that credit card providers and e-commerce stores offer. If you are not in a hurry, then you can also wait for a time when a good promotional offer is rolled out.
When your wedding date is fixed, the event attains the highest priority. Your life suddenly starts revolving around it and you start losing track of other important things. For instance, it’s possible that you think you should put off your credit card bills or loan EMIs for the future, or at least until the wedding has taken place. However, that could be a recipe for disaster.
Late payments can easily damage your credit score and make getting home loans or personal loans extremely difficult, if not impossible. Plus, considering that improving credit score can take a tremendous amount of time, it’s better if you don’t let your wedding overtake other important things in your life.
People consult finance experts on how to get a loan without CIBIL check only to be disappointed. This is because the options for that are few, and they are not any good either. The best way to prepare yourself for the life after your wedding is to make sure your credit report is healthy and your credit score high.
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