How to Finance an Engagement Ring

Getting down on one knee is one of the greatest milestones in your life. Although, before you kneel to your sweetheart you might need a gorgeous diamond ring to pop the question. Looking for how to finance an engagement ring is yet another priority. According to the 2021 report, an average engagement costs around $6000, now that isn’t the budget that every guy is looking for.  

Then how to finance an engagement ring? Explore your options in this article. There are many ways to get her desired engagement ring. Now you don’t have to cut your budget to get her the fairytale engagement ring and here is how! 

Personal Loan

Personal loans can be used for an array of uses such as purchasing an engagement ring or funding your wedding.

When you take out a personal loan, you receive an entire amount upfront and repay it gradually for one to seven years.

Many personal loan providers allow you to check your rates online via prior approval, enabling you to get a sense of your options with no pressure or influence on your credit score. 

Opting for a Credit Card 

Most banks need a credit score of a minimum of 700 to be eligible for one of those cards.

This plan may make sense if you can pay off your engagement ring amount as the 0% Credit period expires. If you continue to carry a balance after this period, you will be fined interest.

It's also ideal if the value of your ring does not surpass 30% of your credit limit. A credit card is a seamless option for payment for those who can pay over a time period. 

Buy Now, Pay Later 

Buy now, pay later (BNPL) services such as Affirm, Afterpay, and Klarna have gained popularity in recent years. These financing firms allow you to divide a purchase into multiple smaller payments with no or minimal interest.

Many BNPL businesses have 0% interest if you repay your purchase within a particular time frame.

Jeweler Finance 

When you buy an engagement ring, some jewelers provide funding that allows you to pay for it over time. They may work with a loan firm to give a loan or offer a shop credit card with a low or no-interest promo term.

This option may make sense if you have sufficient credit to be eligible for the sort of loan and can pay off the engagement ring before the promotional period expires.

Before purchasing an engagement ring, weigh the benefits and pitfalls of your various financial alternatives. Assess both the long-term costs and the impact on your score when deciding which sort of engagement ring financing is ideal for you.