Credit Card vs Personal Loan: Which one is Better for Wedding Expenses?

Credit Card vs Personal Loan: Which one is Better for Wedding Expenses?

With the wedding business in India increasing at an average of 25% every year, couples start looking for outside funding choices to finance their own nuptials today.  The two most flexible financial goods on the marketplace are credit cards and personal loans. 

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While credit card usage within the country is relatively fresh and growing, private loans are a trustworthy alternative.  During personal financial demands, people are able to certainly avail of private loans on credit cards. 


  • About 10.3 million brand-new credit cards have been issued between May 2018 and May 2019.
  • Personal loans increased 20.4% between February 2017 – 2018.

While both offer access to finance, they are equivalent in various ways and satisfy requirements.  A comprehensive evaluation is, thus, essential to pick the best-suited product for marriage expenses.   

Detailed Comparison: Personal Loans vs Credit Cards 

  1. Personal loans are generally unsecured and need no security to avail the money. Lenders disburse the complete sanctioned amount from the debtor’s accounts at one time.  The latter could withdraw money whenever required. 
  2. Credit cards can also be usually unsecured and include a credit limitation, that will be the maximum amount that a borrower may utilize. Looking like a debit card, a credit card makes internet payments much more rewarding.  You’re able to use the card to make purchases and earn attractive reward points that could be redeemed after receiving discounts, money back, etc… 
  1. Another very important factor in credit cards versus private loans is repayment. Borrowers cover EMIs towards the private loan repayment plan.  These EMIs include both the interest and principal components, which last during its tenor. Firms issue credit card bills each month, highlighting all of the transactions on the prior billing cycle.  Users will need to pay back the entire invoice amount on a given date of the month.  Attempting to do this brings penalty in the kind of credit card interest rates, and also the outstanding expected gets added into the following month’s statement. 
  2. While interest rates for personal loans are aggressive, those on credit cards are too high. It’s compulsory to cover the attention in the event of a private loan, no matter its use.  On the contrary, however much is borrowed in the available credit limit, debtors cover charge card interest charges just when they overlook the expected date.   Be aware that credit cards arrive with an interest-free interval of 25 to 30 days following invoice creation.  Users may quickly clear the dues in this period at a 0% interest rate. 

Aside from these, few other attributes make credit cards beneficial than a private loan; those comprise –

  • Borrowers make exclusive reward points on virtually every trade and reach big landmarks.
  • Bonus points, when redeemed for discounts, vouchers, gift coupons, etc., may save considerably on following purchases. Additionally, there are a lot of different items regarding reward points. 
  • Utilizing credit cards for wedding functions can make substantial cashback, making expenditures less expensive.
  • Credit cards arrive with travel benefits. Therefore, a few can even use a card when traveling posts their marriage and revel in profitable travel rewards. 
  • Credit cards have been among the finest financial tools that will help boost your credit rating quickly.
  • Every on-time charge payment takes upward the CIBIL score also assembles a solid profile.  You need to be aware of the numerous methods to use a charge card to get CIBIL score advancement. 
  • With quick growth in cybercrimes, charge cards have been evolving into a more secure financial tool as they include additional security features, built-in fraud protection centers, etc…

 Many weddings have a well-thought-out budget; it is easier to maintain a Track of most of the expenses with charge cards. 

People Searching for you can select cards such as the Bajaj Finserv RBL Bank SuperCard, outfitted with strong security and assorted industry-first capabilities.

 Bajaj Finserv additionally brings their own customized pre-approved provides on credit Cards and several other financial products such as private loans, business loans, house loans, etc.  Such approaches not just make the process simpler but also significantly less time-consuming.  Submit just a couple of details to look at your pre-approved supplies on the internet. 

In credit card versus private loan, the prior succeeds as a much better alternative to cover varied expenses of marriage.  Users may also avail of a private loan from the unutilized limitation of a charge card to tackle bigger requirements economically.  But they need to make sure to use it sensibly and pay the dues off in full each month.


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