Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS , is referred to here as "Credible. Thankfully, there are a few types of engagement ring loans that could help you cover this expense. Personal loans can be used for almost any personal expense — including engagement rings — and are offered by online lenders as well as traditional banks and credit unions.
If you decide to take out a personal loan, remember to consider as many lenders as possible. This way, you can find the right loan for your needs. With this type of financing, you can purchase an engagement from a merchant now and then pay it off over time. In some cases, a credit card might be the right option. Check Out: Personal Loan vs. Credit Card. Here are several important factors to consider to help you decide on the best type of financing for your situation:.
How much you can afford to borrow for an engagement ring will depend on your financial situation and current budget. You can use the personal loan calculator below to estimate your monthly payments as well as your total repayment cost — this way, you can determine whether you can afford the overall loan cost before you borrow. Enter your loan information to calculate how much you could pay. This price range means you may be considering financing an engagement ring. First and foremost, paying cash is always the best option for major purchases like an engagement ring.
Paying cash will save you money on interest, help you avoid late payment fees or penalties, and keep you from buying a ring out of your budget. We explore the best ways to finance an engagement ring, from jewelry store financing options to a personal loan, even paying via credit card.
Purchasing an engagement ring at a jewelry store has its perks. Your soon-to-be spouse can try on different rings and settings before you purchase it to find the perfect fit. Your timing may coincide with a great sale, and the store may offer you a great financing option.
But before financing an engagement ring through your jewelry store, do your research. You will also be expected to keep up with minimum monthly payments during the grace period.
If you miss any payments—or are 60 or more days late on a payment—the grace period ends, and you will be charged for any interest deferred. Another option to finance an engagement ring is to put it on a credit card. But this approach takes some planning. While you may be impatient to propose, taking your time and financing your ring the right way will save you a lot in the long run.
When financing an engagement ring, taking out a personal loan should be your last resort. With those methods, you should pay the ring off before the promotional period expires. Can you afford to finance that special engagement ring?
This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money. These cards have promotional periods of 15 to 18 months during which you pay no interest on purchases you make.
Increasingly popular buy-now-pay-later services like Affirm , Klarna and Afterpay can break your purchase into smaller installments, sometimes with low or no added interest. These companies partner with all types of vendors, including jewelers Brilliant Earth and Best Brilliance. Qualifications: Affirm and Klarna offer pre-qualification, which lets you see what interest rate and payment plan you may qualify for without affecting your credit.
Afterpay says it reviews available funds on your debit or credit card and any history you have with the company. Keep in mind that we're focusing on the rewards and perks that make these credit cards great options, not things like interest rates and late fees, which will far outweigh the value of any points or miles. It's important to practice financial discipline when using credit cards by paying your balances in full each month, making payments on time, and only spending what you can afford to pay back.
You do have the option of financing a ring with a loan arranged through your jeweler. Using loans to make major purchases and keep cash on hand can be a smart financial move, and in some cases, the loans offered by your jeweler may fit your needs. However, jewelers' financing options may not have the best terms or interest rates, and you generally won't get any cash back or rewards on the engagement ring purchase.
The first, and most obvious, is to save up enough money and buy it outright. However, there are reasons you may not want to do this. For instance, you may want to keep a cash cushion in case of emergency , rather than committing to spending it all at once. After all, that's why people finance things like new appliances or cars.
Fortunately, there's another option, which is what I went with. That meant that instead of paying cash all at once, I was able to charge the ring to the card, and pay it off over a bit more than a year without having to pay any interest. As a nice cherry on top, I even got a sign-up bonus for opening the card , and cash back on the ring itself, which I was able to put right toward paying it off.
The key is that you make sure you pay off the whole thing before the introductory APR ends and the normal one becomes effective.
In my case, I decided to be safe and divided the total cost of the engagement ring by I paid that amount each month, and that way, I was finished paying off the whole thing a month early.
A great feature is that you have extra flexibility if you go this route. If you come into some extra cash, or decide that you want to just finish the payments from savings, you can pay off the balance in full at any time. That way, you can do things like transfer Chase points to frequent flyer partners , which is usually a much more lucrative way to use them than redeeming as cash back.
Regardless of which route you choose to go toward paying for the ring, this is an exciting time, but you have a lot of research to do.
If you're not sure where to start, Ritani offers a number of guides on picking out diamonds and settings, as well as how to go about actually buying the ring. And check out Insider Picks' guide to the best places to buy engagement rings online.
Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money.
We do not give investment advice or encourage you to adopt a certain investment strategy. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners.
This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team. Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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