How to Finance an Engagement Ring? 4 Easy Ways

How to Finance an Engagement Ring? 4 Easy Ways

In addition to cars and houses, the diamond engagement ring is among the biggest purchases most people make. In all things in life, you should save money in advance of time and then pay the cash price for a moderate engagement ring. This lets you avoid buying rings you cannot afford and helps you save cash on interest. 

The cheapest method to buy an engagement ring is through savings. However, should you not have the money or are committing to pay for your wedding. Also, there are ways to finance your engagement ring to assist in paying for the cost.

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Different Ways to Finance an Engagement Ring

1. Zero-interest Credit Card

Charging an engagement ring to credit cards with an APR of 0% for promotional purposes could be a vital choice. These rates are typically offered for 12 months or longer. The purchase of a ring will earn reward points and should be eligible for an initial sign-up bonus. It could also aid you in obtaining bonus points. Estimate how much you’ll need to pay monthly to pay off the card before the promotional rate is over, and be sure that it fits your budget. Similar to the promotional rates offered by jewelry stores, you want to avoid paying an unsustainable interest rate. However, financing with credit cards is subject to many considerations, including the following:

  • If the sum of financing for the ring exceeds 30 percent of your credit limit, your credit score is likely to be severely affected. Thus, increasing the amount of your down payment to avoid this type of situation is advised.
  • Credit cards will charge an additional interest rate if you make late payments. In the event of penalties for late payments, various financial institutions have an interest rate of 3% per month. If you don’t pay your bills on time, the annual interest rate is approximately 36 percent.
  • The use of credit cards may seem easy, but you’ll be liable to a range of charges, which could make your expenses more expensive. These include renewal charges, transaction fees, joining fees, and taxes. Therefore, you should thoroughly review them before using a credit card to purchase a ring.

2. Buy Now, Pay Later Loan

BNPL is becoming increasingly sought-after by shoppers today. In this program, you can purchase an engagement ring for less than any money from your bank account because the lender pays for you. The repayment plan of BNPL is the same as those of credit cards. If you can settle your debts on time and on time, you are not required to pay interest. If you don’t, then the seller will charge interest. The benefit of using this option is that the lending institution does not require a credit check to release the money.

If you decide to go with BNPL, you can pay the payment in one lump sum or opt for the no-cost EMI. Here are some things you need to be aware of about BNPL:

  • BNPL could incite customers to purchase impulsively and impact your credit score and budget over the long term.
  • In the event of late payment, interest will accrue on the amount that is not paid. This means that the chance of default is increased.
  • The interest rate for BNPL could reach 24% or higher, based on different factors.

3. Take Financing with Your Jeweler

Today, many jewelers offer finance plans that allow customers to buy the engagement ring of their choice. These schemes are beneficial for potential buyers. For instance, major jewelry brands let you pay a fixed amount each month for a couple of months. Once you’ve made all your payments, you may cash out the balance at maturity by purchasing jewelry against it. The advantages of joining this kind of scheme are the discounts you get on payments in installments.

Things to Take into Consideration Before Opting for a Jewelry Store’s Financing:

  • The quality of gold jewelry is essential in these schemes. The scheme won’t be suitable if the engagement ring or any other jewelry made of gold you are planning to buy is less than 18 carats.
  • The hidden costs should be addressed, especially when you’re financing an engagement ring through an artisan jeweler in your area.
  • Spend some time learning about your jeweler’s calculation of interest rates.
  • Be on the lookout for promotions. These are usually available each year as the festival or wedding season approaches, especially during Diwali.

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4. Personal Loan for Engagement Ring

Personal loans can be found in a variety of sizes. When you take out a loan for personal use, you know the monthly amount your payments will be and precisely when the loan is due to be paid back. In addition, they usually offer lower rates of interest as compared to credit card loans. Personal loans can be obtained from credit unions, banks, and online lenders.

If you have a good credit score, you can confidently apply for the top personal loans. You need to check if your score’s great. It’s worth spending some time building your score. People with good credit scores can get loans with low-interest rates, and a lower interest rate can help you save thousands of dollars. You’re unable to be patient, however, consider always applying for personal loans, even if you have people with bad credit. Make sure you can make the monthly payments before committing to it, or you could drag your credit score even further.

What to Look for When Deciding on Financing an Engagement Ring?

Here are some important considerations to think about to help you choose the most suitable kind of finance for your particular situation:

Rate of Interest

The rate of interest on the loan is the most crucial element that determines the overall cost of your loan. In essence, what you pay to borrow money. You’ll spend less interest throughout the loan if you qualify for a lower interest rate.

Monthly Installments

Check your budget to determine how much you can afford each month. Your monthly expenses should be easily into your budget. If your payments stretch your finances to the limit, think about borrowing less or saving more first.

Repayment Time

Specific options require that borrowers repay their loans in several months. If you need a lower monthly payment, opting for an extended term to spread your expenses is an excellent option. Other options allow you to pay off your balance over some time.

But, it will mean that you’ll be paying more interest over time and could be in debt when you’re married. Select the shortest period you can afford and keep interest rates as low as possible.


Certain types of financing come with charges that can raise the cost of your loan overall. For instance, personal loan lenders may charge origination fees, while credit cards could be accompanied by annual or cash advance charges.

Other options may have prepayment penalties when you pay off the loan earlier than scheduled. Before you sign a loan, study the fine print to ensure you know the costs you should be prepared for.

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If you want the perfect engagement ring, do not be enticed by the price. In the first place, choose a call you can afford. Each option mentioned above to purchase an engagement ring has its benefits. But a personal loan is the most suitable option. This is because it permits you to select an adjustable repayment period and a more significant loan that you can use for other wedding-related costs.


1. Can I Get a Loan on My Ring?

You can finance your engagement ring in several different ways. No-interest options available to those who qualify are no-interest credit cards, “buy immediately, then pay over time”, and in-store finance. Personal loans that have rates at around 6%, offer another option for financing.

2. Can You Finance an Engagement Ring with Bad Credit?

You can purchase an engagement ring even if you have poor credit. Although you’ll generally require an excellent to good credit score to qualify for personal loans, several lenders provide personal loans to those with bad credit. Consider applying for financing in-house or a buy-now, pay-later plan, as these types of loans generally don’t require as much credit as personal loans or credit cards.

Arjun Kumar

I’m a writer specializing in finance content. I have 5-plus years of experience in the content marketing world. I’ve worked with various companies in a variety of industries, from news articles to technical articles. I have gained the skills to present helpful content to all precious audiences of the site. My only moto is to build trust, maintain worth and provide interesting content to the people