How to Finance an Engagement Ring: 5 Ways

Are you planning to get down on one knee and propose? Congratulations! But before you do that, let’s talk about one crucial aspect: how to finance an engagement ring. 

Some say an engagement ring should cost you at least three months’ salary. But don’t worry, there is no hard and fast rule regarding how much you should spend on a ring. An engagement ring’s worth does not measure your love or commitment to your partner. 

As premarital counseling experts say, a ring is only a symbol, but what’s important is the attachment and connection you share. At the end of the day, it’s the mutual love, trust, and respect that will make the relationship last, not the size or cost of your engagement ring. 

You’ll probably want to set aside a pretty decent amount to buy the love of your life a beautiful ring they will adore. After all, this meaningful piece of jewelry is worn daily and, hopefully, forever. 

How to finance an engagement ring

Fortunately, there are many financing options for engagement rings. From personal credit cards to in-house financing options, there are various ways to make the purchase without breaking the bank. 

Thinking about engagement ring financing is smart because starting your married life on the right financial footing is crucial to the success of your marital relationship. So if you’re ready to propose, find out the best way to finance an engagement ring to help you cover the cost. 

Things to know before financing an engagement ring

The average cost for an engagement ring in the US can be around $6,350. And that’s just the starting cost because wedding essentials, from the bridal gown to the reception, rank as one of the most expensive purchases in life. 

Now that you’ve found the perfect partner and are on the hunt for the best ring to pop the question, thinking about how to finance an engagement ring is at the forefront of your mind. 

But before you start swiping your credit card or signing up to finance an engagement ring, here are a few considerations to ponder on:

• Set a realistic budget: Determine how much you can afford to spend on the ring, and stick to it! Don’t let the flashy marketing tactics of the jewelry industry tempt you into overspending.
• Check your credit score: Ensure a good credit score before getting an engagement ring loan. After all, you want to avoid starting your engagement with a mountain of debt!
• Compare financing options: Don’t just settle for the first financing option you come across. Shop around and compare interest rates, terms, and fees to find the best deal.
• Read the fine print: Do your due diligence and read everything. Make sure you understand all the terms and conditions of any financing agreement before signing on the dotted line. The last thing you want with a new spouse is a nasty surprise down the road!
• Have a plan to pay it off: As a reliable partner, you can’t leave things to chance. If you’re determined to put a ring on it, start with a solid plan to pay off the balance to avoid racking up interest and fees. Don’t just make minimum payments on your ring. 

Remember, financing an engagement ring can be a great option if you do it right. So keep your budget in mind, research, and have a plan to pay things off. Happy shopping!

Pros and cons of financing an engagement ring

Now that you’re ready to propose, the price tag on the engagement ring can be a major deterrent. If the design you want is pricey, can you finance an engagement ring? 

Don’t delay your engagement because financing is a viable option. But before you swipe your credit card, look at the pros and cons first.

Pros:

1. Provides higher purchasing power: Financing gives you an opportunity to purchase a gorgeous ring that may be outside your immediate budget. You don’t have to delay your proposal and wait to save up enough money.
2. Gives enormous flexibility: Many financing options offer flexible repayment terms, allowing you to choose a payment plan that suits your financial situation.
3. Helps in building good credit: Regular, on-time payments can help build your credit score, which is great if you’re planning on making any big purchases in the future.
4. Offers low or zero-interest rates: Some financing options offer introductory low or zero-interest rates, saving you money in the long run.

Cons:

1. Missed payments: If you don’t pay off your balance within the promotional period, you could be hit with high-interest rates that could cost you more eventually.
2. Getting in debt: Financing an engagement ring means taking on debt, which could impact your finances and credit score if you cannot make payments.
3. Hidden fees: Some financing options may come with hidden costs. Make it a point to read the fine print before signing any contract.
4. Add undue pressure: Financing an engagement ring may put pressure on you. If you have a long engagement and decide down the line that the relationship will not work out, you’re forced to stay because you’re financially invested.

So, is financing an engagement ring right for you? It ultimately depends on your financial standing and values towards debt. If you choose this route to buy the ring, shop around and find the best deal. 

And most importantly, have a plan to pay off the balance immediately to avoid accruing unnecessary interest and fees.

5 ways to finance an engagement ring

So you’re ready to pop the question, but your bank account isn’t quite prepared for the price tag of the perfect engagement ring. Don’t worry! Luck for you; there are plenty of ways to finance that special piece of jewelry. Here are five options to consider:

1. Credit card

Putting the ring on your credit card can be a convenient option, especially if you have a card with a low-interest rate or an introductory 0% APR offer. Just make sure you have a plan to pay off the balance before interest rates kick in.

2. “Buy Now, Pay Later” deals

Some jewelry stores offer “buy now, pay later” promotions, which can be a good choice if you can pay off the balance before interest rates kick in. Again, read the fine print and be mindful of any possible undisclosed charges or fees.

3. In-house financing

Many jewelry stores offer in-house financing options, which can be a good choice if you have a good credit score and can make monthly payments on time. Just be aware of any potential hidden fees. Read the contract to avoid unpleasant surprises. 

4. Personal Loan

Personal loans for engagement rings are also an option for people with good credit. A reputable lender can provide a lump sum to purchase the ring. Just make it a point to secure a low-interest rate.

5. Family Loan

If you have a trusted family member willing to loan you the money, this can be a good option with low-interest rates or even no interest at all. 

However, you must have a solid financial plan to pay them back on time to avoid breaking their trust and ruining your relationship. It would be horrible to start your married life on a sour note. 

Some more questions

Do you have more questions regarding financing an engagement ring? Here are some more questions people generally have on the matter along with their reasonable answers.

• How much money should you spend on a wedding ring?

There’s no magic number regarding how much you should spend on a wedding ring. The traditional “three months’ salary” guideline is just that – a guideline. Your budget will depend on your individual financial situation, as well as your personal preferences and priorities. 

Some couples may splurge on a high-end diamond ring, while others may opt for a more affordable alternative, like a unique-colored gemstone or a simple gold band. Ultimately, the most important thing is finding a ring that you and your partner love and that fits within your set budget.

For more insights on budgeting a wedding ring, watch this informative video:

• Can you finance an engagement ring with bad credit?

It is not impossible to finance an engagement ring with bad credit, but it can certainly be more challenging. Doing so may come with higher interest rates and stricter terms. Having poor credit history limits options. You may explore alternatives such as:

• Getting a trustworthy co-signer for the loan
• Offering a valuable collateral
• Improving your credit score before applying for financing 

Consider saving up to pay for the ring in cash or choosing a more affordable ring option. Before deciding, it’s essential to weigh the pros and cons of each option and determine what will work best for your financial situation.

Sealing it with a perfect ring

Ultimately, the choice of how to finance an engagement ring will hinge on your financial situation and comfort level with debt. Make sure to do your research and compare interest rates and terms. 

It’s also imperative to consider the pros and cons of your various financing options for engagement rings before making a decision. 

And most of all, don’t forget the real value of an engagement ring – the love and commitment it represents. If you need more insight, consider premarital counseling or take one of our courses to help you. Good luck with your search for the perfect ring, and happy proposing!