An engagement ring is no small investment. In fact, besides your home and vehicle, it’s likely one of the larger purchases you’ll make. Though many people plan for such an expense, saving the exact amount you need is tricky. After all, if you’ve yet to find the ring of her dreams, how can you anticipate how much it’ll cost?
Marketing tells us that to save for an engagement ring, one should put away at least three months’ salary. But as the cost of living continues to rise, this rule has become increasingly outdated. For some, saving can seem downright impossible.
So, how does one go about finding the perfect ring without a huge wad of cash in hand? Luckily there are plenty of options for engagement ring financing. When done wisely, they can make this expense much easier to manage.
Jewelry Store Financing
Nearly every major jewelry store offers financing options. Most programs offer a period of deferred interest, giving you time to pay off the principal balance with no interest. Applying for financing from your jewelry store is generally as simple as filling out an application and waiting for a quick credit check.
Should this be the option you choose, it’s ideal to have a ring in mind before submitting your application, to avoid too many credit inquiries. And if there’s a deferred interest period, be sure to pay off your balance within that window of time to avoid being hit by the accumulating interest.
Like any large purchase, you have the option to finance an engagement ring with a credit card. Though you run the rise of facing high interest rates, there are some cards that offer up to 18 months with 0% APR. These usually come with a 3%-5% fee. If you break that down, a $5,000 engagement ring could be paid off in 18 months with payments of less than $300 per month.
Making payments each month is often easier for folks to manage, which is why plenty of people opt for financing with a credit card. Not to mention, most credit card companies now offer points rewards programs that make them even more enticing to customers.
If you’re looking to avoid credit cards and the looming threat of high interest, personal loans are yet another option for financing an engagement ring. Though very similar to credit cards, personal loans tend to have fixed interest rates. You’ll receive the entire sum up front and can pay it back over an agreed upon length of time.
Be sure to know whether you’re applying for a secured or unsecured personal loan. A secured personal loan will require you to provide some sort of collateral, while an unsecured loan will examine your credit and financial history. Also, confirm whether there are any additional costs to you, like an initiation or annual fee.
Should Your Look Into Financing and Engagement Ring?
Still wondering whether you should finance an engagement ring? Ultimately, the decision is yours to make. Only you know the details of your personal finances, and what makes the most sense to you. Do you consider yourself financially savvy, and will remember to pay off your balance before the interest comes due? Then there’s no reason not to take advantage of engagement ring financing! When used wisely, these financing options can work to your advantage, and relieve some of the pressure that accompanies purchasing an engagement ring.
If you’re wondering where you can find engagement rings for all price ranges in San Diego, you’ve come to the perfect place! Leo Hamel Fine Jewelers offers no-interest financing with your approved credit. Applying is easy and quick. You’ll find an astonishing selection of new, antique, and vintage engagement rings for every style and budget! Surprise her with a one-of-a-kind antique or vintage engagement ring that she can wear as her very own piece of history. Or, if she has a trendier style, a glittering Hearts On Fire diamond is sure to take her breath away. No matter what you’re looking for, we can help you find it here at Leo’s!