How to Finance an Engagement Ring: Pros, Cons, & Options

Written by Ashley FranklinReviewed by Nathan Brown, CFP®Updated: 13th Apr 2022
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Think you have to break the bank to finance an engagement ring? Not so!

There are plenty of ways to get creative and come up with the funds you need. In this post, we’ll explore some of the best methods for ring financing.

So whether you’re looking for a personal loan, want to use your credit card, or have another idea in mind, read on for some helpful tips.

Should I Finance an Engagement Ring?

Before we dive into the ways, you can finance an engagement ring, let’s answer a common question: should you finance an engagement ring?

For some couples, taking out a loan or using a credit card to finance an engagement ring makes sense. It allows them to get the ring they want without saving up for years.

However, financing an engagement ring may not be the best idea for others. For example, if you’re not good at managing money or have a lot of credit card debt, it might be wise to skip the ring and put your money towards other priorities.

Whatever your situation, be sure to weigh the pros and cons before deciding.

How to Finance an Engagement Ring: Understand Your Options

There are plenty of options available for financing an engagement ring. Whatever you choose, make sure you understand the long-term implications.

#1. Personal Loans

Taking out a personal loan might be an excellent way to finance an engagement ring if you have good credit. Personal loans typically have low-interest rates and flexible repayment terms.

That means you can spread out your payments over time and won’t have to worry about accruing too much interest. Just be sure to shop around for the best personal loan rates before applying.

Pros:

  • Low-interest rates
  • Flexible repayment terms
  • On-time payments improve credit

Cons:

  • May require good credit
  • Can take time to be approved

Qualifications

You’ll need good credit to qualify for low interest with a personal loan. You’ll also need to provide information about your income and employment.

>> More: Best Wedding Loans

#2. Zero-Interest Credit Cards

If you already have a credit card, financing an engagement ring with it might be a good option. Many credit cards offer 0% interest rates on new purchases for a certain amount of time.

This means you can make a large purchase like an engagement ring and not have to worry about paying any interest for a while. Just be sure to pay off your balance before the promotional period ends.

Pros:

  • No interest for a set period
  • Low monthly payments
  • Payments spread over time

Cons:

  • Interest rates can jump after the promotion ends
  • May require good credit

Qualifications

You’ll likely need good credit to qualify for a 0% interest introductory rate. You’ll also need to make sure you use the right credit card. Check out our list of the best 0% APR credit cards to see if you qualify.

#3. Buy Now, Pay Later Financing

If you don’t have good credit or want to take out a loan, you might be able to finance an engagement ring through a buy now, pay later financing company.

These companies allow you to spread out your payments over time, and they typically have low-interest rates. Just read the terms and conditions carefully as some companies charge hidden fees.

Pros:

  • Low-interest rates
  • No credit required
  • Flexible repayment terms

Cons:

  • May have hidden fees
  • Minimum purchase amount may be required

Qualifications

You typically won’t need good credit to qualify for buy now, pay later financing. However, you will need to provide information about your income and employment.

#4. Borrow Money from Friends or Family

If you don’t want to take out a loan or use a credit card, you could always borrow money from friends or family.

This is a good option if you’re confident you can pay the money back quickly. Just be sure to put everything in writing so there’s no confusion about the loan terms.

Pros:

  • No interest
  • Flexible repayment terms

Cons:

  • May damage relationships if not paid back on time

Qualifications

You won’t need good credit to qualify for a loan from friends or family. However, you will need to repay the loan promptly to avoid damaging relationships.

#5. In-Store Financing

Many jewelry stores offer in-store financing, which can be a good option if you’re looking to finance an engagement ring. In-store financing is an agreement between you and the store, and it typically has high-interest rates.

However, it can be a good option if you don’t have good credit or if you want to buy a ring immediately.

Pros:

  • No credit required
  • Flexible repayment terms
  • Funding upon approval

Cons:

  • High-interest rates
  • May have hidden fees

Qualifications

You typically won’t need good credit to qualify for in-store financing. However, you will need to verify your income and employment.

#6. Just Save Up Money

Of course, you could always save up money to pay for an engagement ring. This is the most traditional way to finance a ring, and it’s often the best option if you want to avoid interest charges.

Saving up for a ring can take time, but it’s worth it if you can pay for the ring in full when you buy it.

Pros:

  • No interest
  • Can be done over time

Cons:

  • May take a while to save up enough money

Qualifications

You won’t need good credit or a loan to finance an engagement ring through savings. However, you will need to have enough money saved up to cover the purchase price of the ring.

Quick Tips for Engagement Ring Financing

If you’re like most couples, financing an engagement ring is probably one of the most significant financial decisions you’ll make together. So here are a few quick tips to help make the process a little easier.

#1. Compare All Engagement Ring Financing Options

There are many different ways to finance an engagement ring, so it’s important to compare all of your options before deciding.

Consider interest rates, repayment terms, and hidden fees when comparing financing options.

>> More: Best Personal Loan Rates

#2. Talk to Your Partner About a Budget

Before you start shopping for an engagement ring, it’s crucial to have a conversation with your partner about your budget. This will help you narrow down your options and avoid overspending.

#3. Take Your Time

It’s essential to take your time when shopping for an engagement ring.

This is a big purchase, so you want to ensure you’re getting the best deal possible. Don’t be afraid to negotiate with jewelers or compare prices online.

#4. Ask Others How They Financed an Engagement Ring

If you’re still unsure how to finance an engagement ring, ask your friends or family members how they did it. This can give you some good ideas and help you avoid making some of the same mistakes they did.

How to Compare Engagement Ring Financing Options

When you’re shopping for an engagement ring, it’s vital to compare all of your financing options. Here are a few things to keep in mind when comparing financing options:

Interest Rates

Interest rates are one of the most important things to compare when financing an engagement ring. The interest rate you’re charged will affect how much you pay in the long run, so getting the lowest rate possible is crucial.

Fees

There may be hidden fees associated with some financing options, so it’s important to know what to expect. For example, some lenders may charge an application fee, while others may charge a late payment fee.

These fees add up over time, so it’s essential to be aware of them before signing up for any financing plan.

Funding Times

Different financing options have different funding times. Some may take a few days to process, while others may take a few weeks. Make sure you know how long it will take to receive your funds and plan accordingly.

Financing Amounts

Not all financing options offer the same amount of money. Some may only provide a few hundred dollars, while others may offer up thousands of dollars.

Be sure to know how much you can borrow before shopping for an engagement ring.

Is It Normal to Finance an Engagement Ring?

Whether or not you finance an engagement ring is a personal decision. There’s no right or wrong answer, and there are pros and cons to both financing and paying for a ring in cash.

If you decide to finance an engagement ring, make sure you compare all your options and choose the best one for you. Also, be sure to understand the interest rates, repayment terms, and fees before you sign any contracts.

>> More: See the Requirements to Get a Personal Loan

Is It Safe to Finance an Engagement Ring?

In general, it is safe to finance an engagement ring. However, when you finance an engagement ring, you’re essentially taking out a loan to pay for the ring.

This means you’ll have to make monthly payments on the loan, and if you miss a payment, your credit score could be affected.

If you decide to finance an engagement ring, make sure you’re comfortable with the risks before signing up. It’s also important to read the loan agreement carefully to know what you agree to.

Do People Put Down Payments on an Engagement Ring?

Depending on the financing option you choose, you may be required to put down a down payment on an engagement ring. This will reduce the amount of money you have to finance and lower your monthly payments.

Bottom Line: How to Finance an Engagement Ring

If you’re wondering how to finance an engagement ring, there are a few things you should keep in mind.

First, take your time and compare all of your options. Second, be aware of each financing option’s interest rates and fees. And finally, ask your friends or family members how they financed their engagement rings.

An engagement ring is a big purchase, so it’s important to be informed before making any decisions. These tips can help you make the best choice for your situation and avoid making costly mistakes.

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Ashley Franklin
Ashley Franklin

Ashley Franklin is a professional writer and financial literacy expert. Ashley double-majored in Computer Science and Communications, and she brings her talents to the forefront with writing about personal finance and investing. Having worked with renowned international websites and publications, Ashley has found that there’s no one-size-fits-all solution to financial management. That’s why her articles are all about finding what works for you.