Personal Loans for Engagement Rings

Can you finance an engagement ring?

Yes. While the “cheapest” way to buy an engagement ring is using your savings, many people choose to finance it instead. If you don’t have enough or want to keep your savings intact there are options available to cover the cost of an engagement ring, such as in-store financing, a personal loan, or a credit card.

What is engagement ring financing?

Engagement ring financing is any type of funding that provides you with the money you need to purchase your dream engagement ring.

Best personal loans for financing an engagement ring

You may find that a personal loan is the most affordable type of engagement ring financing for you, and there are many lenders out there to choose from depending on the loan amount you are looking to receive and your credentials. Some of the best engagement ring personal loans include:

How much should you spend on an engagement ring?

You have probably heard the outdated belief that an engagement ring should cost 3 months’ salary, but this was in fact just a marketing ploy used around WWII to enhance the sales of diamonds!

The amount you should spend on an engagement ring comes down to what is right for you and your fiancé, considering your financial situation and how much you are looking to spend on your wedding.

How can I get an engagement ring loan?

There are several ways that you can finance an engagement ring, for instance:

• Credit Card: A credit card will give you access to the money you need when you need it, but they are only worth considering if you can find a 0% APR introductory offer, or at least a low interest rate (under 6%). If you are unable to pay back your balance before the introductory offer ends, you’ll roll over into a much higher interest rate, so it’s best to do a balance transfer if you haven’t yet paid off your balance.
• In-Store Credit: You might find that the jewelers or department store where you are looking to purchase an engagement ring offers an in-store credit card. These cards often offer a 0% APR introductory period, which allows you to make your purchase on the credit card without having to pay interest, and you may even get other store-related perks. Just be sure to check that you won’t be charged a high interest rate retroactively when the introductory period ends, and remember that with this type of financing you are limited to the one store.
• Buy now, pay later lenders: In recent years, there has been an increase in ‘buy now, pay later’ lenders, spreading the cost over time, such as Klarna, and Affirm, and PayPal’s 3 or 4-month option. These lenders allow you to make a purchase from certain retailers and provide you with an installment loan so that you can pay for your purchase over time, often with 0% APR. Again, this limits your options to certain retailers and there may be a credit limit on purchases. You should also be aware that you may be required to make a down payment so you will need to be able to cover this cost outright, and if you don’t pay the loan back within the required time limit, you’ll usually be subject to high interest rates and fees.
• Personal Loan: One of the most popular ways to finance an engagement ring is with a personal loan. You apply to a lender and, once approved, will receive a lump sum amount to your bank account. You’ll then be required to repay the loan, plus interest, via weekly or monthly payments, over the agreed term. Personal loans are offered by traditional banks, credit unions, and alternative online lenders, with borrowing amounts typically ranging from $600 to $50,000 depending on your credit score and the lender. A personal loan may be a better option if you are worried about a 0% APR introductory period ending on a credit card before you are able to pay back your balance. A personal loan will mean paying an interest rate throughout your loan term, but they are generally a lot lower than credit card interest rates so could end up being more affordable in the long run.

What are the pros and cons of engagement ring financing?

PROS

• Afford the ring you want (or get the best you can afford)
• Spread the cost into more manageable payments
• Some engagement rings hold their value well
• There are a lot of financing options to choose from to best suit your needs

CONS

• If you want to get married in the near future, taking out credit may put a damper on your plans if you can’t pay it off quickly
• If the ring is damaged or something else happens, you still have to repay the debt even if the ring is no longer worn
• Not all choices hold their value, and most will drop significantly as soon as you buy them and won’t regain their value for some years