How to Finance an Engagement Ring

If you have been pondering the question- How to finance an engagement ring, then don’t worry, we got you covered. When you set out to shop for engagement rings, there are a couple of important factors to take into consideration. While selecting the ring’s design, stone, shape and metal can be fun and engaging, narrowing down on the budget can be somewhat tricky. Although the most popular engagement ring myth is to shell out three months’ worth of your salary, it does not hold true for every couple.

After all, the perfect engagement ring is what suits your partner best and your financial situation. While there are no set rules on how much you should spend on it, you can still go all out and splurge on a big centre stone or an exquisite sparkler by financing it. Ahead are some of the best engagement ring financing options to consider as you head out to shop for women’s engagement rings.

How to Pay For Your Engagement Ring

If you are planning to buy your engagement ring in cash or using your debit card, you will not have to pay extra money in the form of interest and penalties in the long run. It will also prevent you from buying a ring beyond your budgeted value.

However, if cash or debit card is not an option for you, there are many other ways to finance your engagement ring, especially if you are looking to splurge on it. But before taking those steps, let’s take a look at things to know before buying an expensive ring.

1. Purchase With a Zero-Interest Credit Card

New credit cards provide great offers and interest-free credit options. Usually, for 15-21 months, companies offer 0% interest rates. This can be the best option to buy your ring as you will not be bound to pay an extra amount in interest.

Some cards also offer travel rewards and extra credit points on new credit card purchases, which can be used for your honeymoon. In short, zero-interest credit cards can help you buy your precious ring and provide extra benefits. Win-win!

The only thing you should be cautious about is the credit limit on your card. So, choose a card with a high credit limit so that it does not affect your credit score. You must have a high FICO score, usually 690+ or more, to qualify.

2. Choose the ‘Buy Now Pay Later’ option

Recently lenders provide the option of buying a product now and paying for it later. This feature can help you divide your significant investment into smaller amounts that do not feel heavy on your pocket. If lucky, you might find this one with a zero-interest option too.

The major advantage of using this option is that it does not require a good credit score. However, failing to pay the credit back on time may cause a penalty affecting your future credit score. So, when you opt for the engagement rings buy now pay later option, remember that while you will not have to pay the entire amount upfront, you will still have to make smaller payments at regular intervals.

One-time purchases that make for considerable investments are the best for this payment option. Choose the buy now pay later for engagement rings option when you are confident to pay back on time with lower interest rates.

3. Select a finance option from your jeweller

Jewellery brands provide promotional offers during peak sale seasons and offer finance options at low or no interest rates. These interest rates are provided for a specific period, after which they get back to normal.

This finance option is different from credit cards as jewellers charge interest on accrued value post the specified periods. You can choose this option if you can repay the loan within the stipulated time.

Angara’s engagement ring payment plan includes Easy Pay Instalments that allow you to buy your engagement ring now and pay in 2 to 3 instalments without any interest or additional fees. To know more, cheque out our Payment Options.

4. Choose a personal loan to fund your engagement ring

The most common option is to choose a personal loan depending on your available credit score. Personal loans provide the required money for your jewellery purchase at an interest rate that can be paid in monthly instalments.

Remember to look closely at the interest rates offered when you choose a personal loan for engagement rings. The interest rate on personal loans starts from 6% or more depending on the bank you choose and is offered for two to seven years. If you have a good monthly income, a good credit score and little or no existing debt, a personal loan can fulfil your requirement for your ring purchase.

Planning to buy a lab-grown diamond or coloured gemstone ring as your token of love? Looking for lab-grown engagement ring financing? Well, you can consider any of the above options that work best for you. Use a zero-interest credit card, get a personal loan or select the right financing plan from your jeweller. What’s more, you can also choose the buy now pay later for lab-grown engagement rings option. Although lab-grown sparklers are easier on the pocket compared to natural diamonds and gems, you can still choose to buy your lab-grown engagement ring with this mode of finance.

Why Is Financing an Engagement Ring a Good Option for You

Without a doubt, shopping for your ring with your savings makes it more personal. However, paying for the ring in one go with cash or debit card may not be an option. Especially, if you are eyeing some of the most expensive gemstone engagement rings and diamond rings on the market, a suitable financing option can help you buy that dream sparkler. You can easily finance your lab-grown engagement ring or natural diamond or gemstone ring and put your mind at ease.

Read Also: Stages of rings in a relationship

Here are a few reasons you should go for a financing option to shop for an engagement ring-

1. Maximise Love and Minimize the Financial Burden

Finance options feel light on your pocket by dividing the amounts into monthly instalments equally. It proves a great way to reduce the financial burden and allows you to focus on other areas of your new conjugal life.

Choosing a financial option means distributing or dividing your one-time payment into smaller amounts spread over several years. This way, you can buy your engagement ring and forget the pressure of paying a lump sum amount in one go. And at Angara, you’ll get to choose from a plethora of engagement ring finance options and opt for one that suits you best.

2. Choosing a New Credit Card Can Get You Rewards

As discussed earlier, buying a new credit card with high credit limits can get you rewards and credit points. This can come in handy while planning your wedding ceremony.

Apart from relieving you of financial burden, new credit cards can also assist you in reducing your honeymoon expenditure. This means that you not only get the love of your life to say “yes” with that ring but also take her out for a memorable honeymoon.

3. Paying Debt Becomes More Responsible Than Saving Money

Studies and reports suggest that a person is bound to pay his debt more responsibly than foreseeing his future for savings. Therefore, a person who has a debt tends to be more responsible for paying it back than a person wishing to save money for purchases. Plus, you can always choose loans for engagement rings with low interest rates, so you don’t end up spending too much.

This also goes for buying jewellery with the help of a financing option, as you can responsibly pay the expenses over a due amount of time. Besides, you also get the option to pay back in smaller portions which do not feel like an enormous burden. Getting an engagement ring on finance is ideal for those who don’t want to compromise on their dream ring while also juggling other financial goals and obligations.

How Much Should You Spend on Your Engagement Ring

This is a very common question and is usually calculated with the ‘3-month salary rule.’ But this rule is ruled out in most cases.

On average, people who choose to buy an engagement ring priced between $3000 and $10,000 choose financial aid. Preferably, you should first calculate the amount you can afford to spend on an engagement ring. If you find the value uncomfortable to pay back, deduct 10% from it. If the value remains unsatisfactory, remove another 10% from it. Using this method, you can easily arrive at a price you can happily spend on your most important piece of jewellery. This engagement ring price rule will help you understand and set your budget, so you can still get a gorgeous token of love without heavy debt.

No matter how much you spend, it’s also important to insure your engagement ring to protect it against loss, theft and damage. After all, your precious sparkler means the world to you and is something you’ll want to cherish forever. 

Want more tips to help you make the right purchase? Cheque out our engagement ring buying guide to know all about choosing the perfect centre stone, carat weight, design and more for your precious token of love.

Do you want a stunning ring that totally screams ‘you?’ Then, head to Create with Angara and design your own engagement ring. Choose from a variety of gorgeous gemstones, ring settings, shank styles, metals and lots more and design a ring that’s just perfect for your love story.