Dying to get engaged to the man or woman of your dreams? Don’t have enough money to pay for a ring? Don’t worry; you can finance it!
There are a few different wedding ring finance options available. Below, we’re going to discuss the most prominent of the bunch.
Your first financing option is to get a loan from the jeweler from whom you buy the ring. While not all jewelers will provide loans, a good many of them will.
Jeweler loans vary in terms of interest rates, intro periods, and loan lengths. The key is to find one which suits your payment preferences and capabilities.
If you’re able to pay your loan off within the first year, you might consider looking for one with deferred interest. A deferred interest loan will allow you to purchase the ring with $0 interest, provided that you’re able to pay it off in full before the deferred interest period ends.
Note, however, that if you don’t pay it off in full by the end of the deferred interest period, you will have to make interest payments retroactively. Considering that APRs for these loans can be as much as 30%, this could cost you substantially.
While getting financing from the jeweler is usually an option, it’s not necessarily the best option for you. Another option is to obtain a credit card with a 0% intro APR.
These credit cards don’t charge interest for a designated intro period, usually spanning somewhere between 12 and 18 months. So, if you’re able to pay the ring off within that time frame, you won’t have to pay any interest at all.
Note that if you can’t make the payment in full before the end of the intro period, you will have to start making interest payments based on the total balance remaining. APRs on credit cards can range between 15% and 29%.
Your last option is to take out a personal loan. Simply put, whether you’re buying wedding bands for men or engagement rings for women, this is not the best idea.
Personal loans never come with 0% interest periods. As such, they force lendees to pay interest from the moment they take effect. And because interest rates for personal loans fall between 5% and 36%, they’re the exact opposite of cost-effective.
You should always opt for a jeweler loan or 0% intro APR credit card before opting for a personal loan. If you’re forced to take out a personal loan, you’re advised to wait on buying a ring altogether.
In the vast majority of cases, wedding ring finance is a viable option. If you play your cards right, you can end up paying little or even no interest. So, if you’re desperate to get married, you might as well go out and buy that ring.
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