Wedding Ring Payment Plans: Can I Afford My Dream Ring?

There are many options for financing a wedding ring, including credit cards, “buy now, pay later” plans, directly through the jeweller, or personal loans. It's important to do your research and make a budget before buying a wedding ring. While the wedding ring is a significant symbol of marriage, it's not necessary to go into debt or skimp on other financial obligations to purchase one. Couples should align their expectations and decide on a ring that is meaningful to them, regardless of its price tag.

Using a credit card

Choosing the Right Credit Card

When buying a wedding ring, look for a credit card with a 0% introductory APR. This means that instead of paying a large sum upfront, you can charge the ring to the card and pay it off in instalments, without incurring interest charges. Additionally, you may be able to earn a sign-up bonus and get cash back on the ring itself.

It is important to ensure that you pay off the entire balance before the introductory APR period ends and the standard interest rate kicks in. This option provides flexibility, allowing you to make larger payments if you come into extra money or decide to use your savings.

Recommended Credit Cards

• Chase Freedom Unlimited®: This card offers a 0% intro APR on purchases and balance transfers for the first 15 months, followed by a variable APR of 19.99% - 28.74%. It also provides a welcome bonus of 1.5% cash back on purchases (up to $20,000 spent in the first year) and additional rewards on travel booked through Chase Travel℠, dining, and drugstore purchases.
• Blue Cash Everyday® Card from American Express: This card offers a 0% intro APR on purchases and balance transfers for 15 months, followed by a variable APR of 18.74% - 29.74%.
• Capital One Quicksilver Cash Rewards Credit Card: With this card, you'll get a 0% intro APR on purchases and balance transfers for 15 months, followed by a variable APR of 19.74% - 29.74%. It also offers a 3% fee for the first 15 months on balance transfers, then 4% at a promotional APR.
• Capital One Savor Cash Rewards Credit Card: Similar to the Quicksilver card, this option provides a 0% intro APR on purchases and balance transfers for 15 months, followed by a variable APR of 19.74% - 29.74%. It also has a 3% fee for the first 15 months on balance transfers and then 4% at a promotional APR.
• Citi Simplicity® Card: The Citi Simplicity® Card gives you a 0% intro APR on balance transfers for 21 months and on purchases for 12 months, followed by a variable APR of 19.24% - 29.99%. The balance transfers must be completed within four months of account opening, and there is a fee of $5 or 3% of the amount transferred, whichever is greater.
• U.S. Bank Visa® Platinum Card: This card offers an introductory 0% APR for 18 billing cycles on purchases and balance transfers, followed by a variable APR of 18.24% - 29.24%. It has a $0 annual fee, making it a good option if you're looking to spread out payments without incurring interest charges.
• Wells Fargo Reflect® Card: This card offers a 0% intro APR for a lengthy period and has no annual fee.
• BankAmericard® Credit Card: Another card with a long 0% intro APR period and no annual fee.

Additional Considerations

When using a credit card to purchase a wedding ring, it is important to consider your credit limit. If you think you might reach your limit, call the company to request a higher one. It is also crucial to coordinate the timing of when you get the credit card and when you buy the ring, as some cards with introductory 0% APR have specific time frames in which you can apply that financing option.

Additionally, look for credit cards that offer purchase protection in case of accidental damage or theft. Some premium cards offer higher coverage limits and may be worth considering.

Finally, be cautious of opening a jewellery store credit card, as these often come with high-interest rates, limited use, and no travel rewards or cash-back benefits.

Buy now, pay later plans

"Buy now, pay later" plans are a popular option for those looking to purchase a wedding ring without having to pay the full price upfront. These plans allow you to make smaller, more manageable payments over time. Here's what you need to know about "buy now, pay later" plans for wedding rings:

How It Works

"Buy now, pay later" plans typically involve partnering with companies like Affirm, Klarna, Afterpay, or ShopEZCredit, which offer instalment plans with flexible payment options. You can apply for these plans during checkout, either online or in-store, and they often come with low or zero interest rates. The repayment term and interest rate will vary depending on the provider, with some offering short-term plans of a few months and others providing longer-term plans of up to a few years.

Qualification

The good news is that "buy now, pay later" plans generally do not require a minimum credit score. Providers may consider factors such as the funds available on your debit or credit card, your purchase history with the lender, the price of the ring, and your credit score. While a hard credit check is not required, a soft credit check will usually be performed when you apply, which will not impact your credit score.

Impact on Credit Score

It's important to note that on-time payments through "buy now, pay later" plans are typically not reported to the major credit bureaus, so they may not help build your credit. However, late payments can be reported, and they may negatively affect your credit score. Additionally, some plans may require a down payment, especially if you are financing a more expensive ring.

Popular Providers

Several companies offer "buy now, pay later" plans for wedding rings. Affirm, for example, has partnered with My Trio Rings to offer flexible payment options with APR rates ranging from 0-36%. They provide loans of up to $25,000 with terms ranging from one month to five years, and you can choose from various repayment options, including 3, 6, 12, 24, or 36 monthly payments. Another option is Afterpay, which offers a four-installment payment plan over six weeks, with a down payment typically required at the time of purchase.

In summary, "buy now, pay later" plans can be a convenient and affordable way to purchase a wedding ring. By understanding the qualification requirements, repayment terms, and potential impact on your credit score, you can make an informed decision about whether this payment option is right for you.

Direct payments to the jeweller

Many jewellers offer in-house financing options, allowing you to make direct payments for your wedding ring. This option can be a great choice if you qualify for a competitive interest rate or plan to pay in full within 12 months.

For example, Brilliant Earth offers a layaway payment plan, which allows you to make monthly payments on your purchase after an initial deposit. Similarly, Jared offers a range of convenient ways to help you make your ideal ring a reality, though specific details are not provided.

Some jewellers also offer promotional periods with no or low-interest, such as Jared's Wells Fargo Jewelry Advantage® credit card, which offers a 0% intro APR on purchases for 12 months. However, it's important to note that interest will be charged from the purchase date if the balance is not paid in full within the promotional period, and paying only the minimum monthly payment may not be sufficient to avoid this.

Another option is to use a third-party site, such as Affirm, which offers multiple monthly repayment plans with starting rates as low as 0% APR for well-qualified buyers. Special financing payment plans of up to 36 months are available, with interest rates ranging from 10% to 36% APR based on credit. Afterpay is another third-party option, allowing you to make a down payment (typically 25% of the total cost) and then pay the rest over six weeks in four equal instalments, each due every two weeks.

Personal loans

To qualify for a personal loan, you will need a good credit score, a high income, and a low debt-to-income ratio. You can use a personal loan calculator to see estimated rates and payments based on your credit score. Pre-qualifying for a loan will allow you to see the rates and terms without affecting your credit score.

While some lenders offer loans as high as $100,000, you can also apply for a small personal loan if you're on a tight budget. However, keep in mind that personal loans may come with origination fees of up to 10% of the total loan amount.

One example of a personal loan provider is LightStream, the online lending arm of Truist Bank. LightStream offers low-interest loans with flexible terms for borrowers with good credit. There are no origination or late fees, and few restrictions on how you can use the money.

Layaway plans

No Credit Check and Hidden Fees

Flexible Payment Schedules

With layaway plans, you can choose from weekly, bi-weekly, or monthly payment options to suit your preferences and budget. The flexibility allows you to break down the total amount into achievable milestones, making it easier to manage your wedding expenses.

Scheduled Automatic Payments

You can set up scheduled automatic payments from your debit/credit card or bank account. This ensures that you stay on track with your payments without having to remember to make manual transactions.

Lock-in Sale Prices

Another advantage of layaway plans is the ability to lock in the sale price of the ring. This means you can take advantage of any discounts or promotions and secure your purchase without worrying about future price increases.

Customisable Plans

Refund and Cancellation Policies

Most layaway plans have clear refund and cancellation policies. For example, if you decide to cancel your plan, you will typically receive a refund for a portion of your payments, while the remaining amount can be applied to a new order within a certain timeframe.

Overall, layaway plans offer a stress-free and convenient way to pay for your wedding ring. By breaking down the total cost into manageable payments, you can achieve your dream of owning a beautiful wedding ring without straining your finances.

Frequently asked questions