Engagement Ring Financing: Everything You Need to Know
We suggest not financing an engagement ring if at all possible. Usually, when you’re at the point of proposing, you’re also at a stage of life with other large financial hits coming your way: a wedding, preparing for a family or buying a house.
If you es Allen or Blue Nile financing. These jewelers offer the best deal (while many other jewelers will rip you off). Blue Nile and James Allen are reputable diamond dealers who deliver high-quality jewelry at an excellent price.
How to Finance an Engagement Ring
Financing an engagement ring allows you to purchase a ring that costs more than the cash you have on hand. When you finance, you agree to a payment plan or contract with the loaning entity. Promotional periods, interest rates and monthly payments are agreed upon upfront.
1. Finance Through a Jewelry Store
Almost every major jeweler offers a financing option. They usually promote interest-free financing for a certain period, such as 6 or 12 months.
It’s easy to be tempted by financing “deals” offered by well-known brick and mortar stores like Jared the Galleria of Jewelry, Kay Jewelers, Shane Co. and Zales. But their financing “deals” often come with a catch. If you don’t pay off the full amount within the promotional period, you’re subject to high interest rates and paying up to 50% more for the ring than its original cost.
As you can read in our reviews, we strongly suggest not purchasing from these jewelers. To see all of our candid reviews of jewelry companies, visit our Diamond Pro Reviews page.
If you do wish to finance through a jeweler, we recommend Blue Nile or James Allen. If you don’t qualify for financing with these two jewelers, the only companies you’re qualifying with are the ones ripping you off.
- No interest if paid in full within the promotional time period
- Equal payments and 9.99% APR if paid in full within the promotional period
- No special terms (with a 25 day grace period if the full balance is paid each month)
- Deferred interest if paid in full within the promotional time period
- 9.90% APR with 24 monthly payments
A jeweler will run a credit report when you apply for financing, so choose your vendor first to avoid multiple inquiries hitting your credit report.
2. Finance Through a Personal Loan
Instead of financing through a jeweler, you can apply for a personal loan. A personal Massachusetts installment loans loan gives you the cash you need up front with the ability to pay the amount back over a period of time.
Personal loans come in two varieties: secured and unsecured. Secured loans require a collateral, like a car or a boat, in case you aren’t able to pay back the loan. Unsecured loans don’t require any collateral, but they will look at your financial history and credit.
Many personal loan companies will make their offerings seem great, but they usually charge initiation fees and high interest rates. We suggest steering clear of using personal loans for an engagement ring purchase if at all possible.
3. Finance Through a Credit Card
Like many other large purchases, like new furniture or appliances, engagement rings can be financed through a credit card. While some credit cards are better than others, you’ll often be subject to paying more for your ring due to interest rates.
If you do decide on a credit card for your engagement ring financing, look for a card that offers zero interest (at least for a promotional period). If you’re not able to find a credit card with zero interest, opt for one with a strong rewards program. You can get cash back or reward points toward things like travel and groceries.
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