Exclusive for noworrieseventplanning.com by Grace Emery
For many couples, the engagement ring symbolizes the start of their lives together. However, as meaningful as engagement rings are, they’re not the most budget-friendly. Surveys on Brides reveal that most couples spend almost $4,000 on the engagement ring alone. Understandably, not everyone has this money available nor do they feel comfortable borrowing from friends or family. Luckily, there are ways in which you can safely and realistically finance your engagement ring. From options you may already have available to ones that require a little more elbow grease, here are the top three ways you can take home your dream ring.
1. Use a credit card
The beauty of using a credit card for your purchase is that you can get the ring immediately. This lets you have the ring as soon or as late as your schedule permits. As an added bonus, credit cards offer you cash back rewards and perks along with your purchase. If you’re unsure which card is best for this transaction, look for one with a lower annual percentage rate (APR). As explained on AskMoney, which has discussed credit cards at length, you’ll need to choose cards with an APR no higher than 16%. This is the suggested interest rate by the Federal Reserve. If you’re planning to buy a pretty pricey ring, you may even want to sign up for a 0% APR credit card. For up to 21 months after these cards are first issued, any purchases will be free from interest. Of course, you still want to be careful with the charges you make regardless of what your APR is. Make sure to check your statements regularly and keep updated on payments. Otherwise, you may adversely affect your credit history.
2. Try point-of-sale financing
If you don’t have a credit card but still want to make staggered payments, check if your retailer offer point-of-sale (POS) financing. According to an introductory guide on Forbes, POS is a lending option that lets consumers make incremental payments through a third-party fintech provider. Because they are not manned by banks or lenders, qualifying for POS is usually faster and easier. If approved, consumers going the POS route can choose between payment schemes that range from 0% APR for a limited time to 30% APR. Keep in mind, though, that while POS financing may offer a lower APR it’s very strict on payment terms. Missed or late payments can incur sizable fees and not all retailers allow returns or exchanges with this payment option. POS financing is also usually only available via online retailers or stores with an online platform.
3. Get a loan
Getting a loan for an engagement ring may seem a bit drastic. But with the right terms, it can be a smart option. Similar to FHA home loans— which have been previously discussed on our blog— personal loans have reasonable payment terms that are easy to qualify for. Whereas most loans are strict about credit scores, some personal loan providers can entertain applicants with scores less than 600. Plus, since most personal loans are flexible and provided in a lump sum, you can allocate the money as you wish. This means, part of the payment could go to the ring’s initial purchase, while some extra funds can be used for resizing or recutting the stone. Should you opt for a loan, do look for options that have longer payment periods. This way, you aren’t too pressed between payments.
Of course, as important as your engagement ring is, it shouldn’t cost an arm and a leg. With The Knot reporting that the average wedding cost since 2020 is at $19,000, would-be wedded couples already have a lot of expenses on their hands. Hence, while getting your dream engagement ring is exciting, try to still be realistic about the process. With a practical and level-headed approach, you can find the perfect ring for you without impacting the financial future of your happily-ever-after.
For more wedding and budgeting tips, please visit the blog at No Worries Event Planning.