Wedding Bands: Payment Plan Possibilities And Pitfalls

Wedding bands are a significant investment, and many couples may not be able to afford the upfront cost. Luckily, there are several options for financing wedding bands. Traditionally, each person pays for the other person's ring. However, modern couples may opt to split the cost or use a shared wedding account. There are also payment plans offered by jewellery stores, credit card financing, and personal loans.

Wedding ring payment plans

Wedding rings are a significant investment, and payment plans can help you secure the rings you want without paying the full cost upfront.

Many jewellery stores offer their own financing options, allowing you to delay payments for a set period, usually between six to 12 months. Some popular jewellers, such as Jared's, Blue Nile, and Reeds, also offer credit cards with financing options, limited interest, and small annual fees. These credit cards often come with promotional periods of zero percent interest, but it's important to read the fine print and understand the terms and conditions before signing up.

Another option is to use a traditional credit card with a zero percent introductory APR. To qualify for these cards, you typically need a good to excellent credit score of 670 or higher. When considering this option, it's essential to understand the introductory rate period, the APR you'll pay after this period, and whether the zero percent interest applies to all transactions.

Personal loans are another alternative, especially if you have a lower credit score. However, be cautious of high-interest rates, and try to pay off the loan within a short period to avoid accruing excessive interest. When considering a personal loan, calculate your monthly budget, compare different loan options, and use a credit calculator to determine the minimum monthly payments and additional interest.

Finally, don't forget that there is no rule that you must purchase wedding rings. If financing options don't work for you, there are other ways to symbolise your commitment, such as matching tattoos, less expensive jewellery, or shared experiences like planting a tree together.

Financing options

Wedding rings are a big investment, and payment plans are an excellent option for couples who aren't ready to pay the full cost upfront. Here are some financing options to consider:

Jewellery Store Financing

Many jewellery stores offer their own financing options, allowing you to delay payment for a certain period, typically ranging from six to 12 months. They may also offer promotions with zero per cent interest for a limited time. Be sure to review the fine print and understand all the terms and conditions before agreeing to any in-store financing plan.

Jewellery Store Credit Cards

Some jewellers, such as Jared's, Blue Nile, and Reeds, offer credit cards with financing options, limited interest, and small annual fees. These cards often come with special promotions and can help keep your credit varied, which is a factor in calculating your credit score. However, retail credit cards can also come with high interest rates, so be sure to review the terms carefully.

Credit Card Financing

If you have a good to excellent credit score (typically 670 or higher), you may qualify for a zero per cent introductory APR credit card. This option can be beneficial for financing your wedding rings and improving your overall credit and financial well-being. Be sure to consider the introductory rate period, the APR after this period, and whether the zero per cent interest applies to all transactions.

Personal Loan Financing

If you don't qualify for jewellery store financing or a zero per cent APR credit card, a personal loan is another option. Personal loans are generally easier to obtain with a lower credit score, but be cautious of high interest rates. The average personal loan period is 12 to 60 months, but it's advisable to pay off the loan as soon as possible to minimise interest accumulation.

Other Options

If financing options are not for you, there are other ways to approach purchasing wedding bands. For example, if one person bought the engagement ring, the other person could pay for the wedding bands. Alternatively, you could split the cost evenly or start a shared wedding bank account to fund the purchase.

Credit cards

Pros:

• Credit cards often come with rewards programs that allow you to earn cash back or miles on your purchases, which can be redeemed for other wedding-related expenses or your honeymoon.
• With a 0% introductory APR offer, you may be able to avoid paying interest on your purchases if you pay off the balance by the end of the promotional period.
• Credit cards offer a dispute process for purchases. According to the Federal Trade Commission, the Fair Credit Billing Act allows consumers to dispute charges, and you may be able to reverse a transaction if a vendor doesn't deliver as promised.
• Some credit cards offer incentives for new card members, such as additional cash back or miles for a limited time, which can be beneficial when making large purchases.
• Credit cards can be used as a short-term, interest-free loan if you pay off the balance promptly.

Cons:

• Without discipline and planning, you may spend more than intended and take longer to pay off the balance. Creating a wedding budget beforehand and setting mobile alerts can help prevent this.
• Using a credit card for wedding expenses can increase your credit utilization rate, which may lower your credit score temporarily. This can be avoided by increasing your credit limit or staggering your payments to keep your card balance low.
• Credit cards may have higher interest rates than personal loans for weddings. If you don't repay the balance during the promotional period, you will incur interest at the card's regular rate, which can lead to high credit card debt.
• Opening multiple credit cards to take advantage of rewards and promotions can be difficult to manage, so it's important to only open as many cards as you can comfortably handle.

When considering using credit cards to pay for wedding bands, it's essential to weigh the benefits against the potential drawbacks. It can be a great option if you have the financial discipline to pay off the balance promptly and take advantage of rewards programs. However, if you're concerned about overspending or accumulating high-interest debt, you may want to explore other payment options.

Personal loans

When it comes to wedding loans, you can expect to receive funds within a week, and sometimes as soon as the same or next day. You will then need to pay back the loan with fixed monthly payments that include interest, usually over one to seven years.

• LightStream Personal Loans: LightStream is known for offering loans with some of the lowest interest rates and the ability to receive an even lower interest rate when you enrol in autopay. This lender provides loans for nearly every purpose except for higher education and small business.
• SoFi Personal Loans: SoFi offers personal loan amounts of up to $100,000, depending on creditworthiness, which can be ideal for individuals who need to borrow larger amounts of money to cover their wedding expenses.
• Upstart Personal Loans: Upstart is ideal for individuals with a low credit score or even no credit history, as it considers factors like education, employment, credit history and work experience.
• Discover Personal Loans: With Discover Personal Loans, you can receive your money as early as the next business day, provided that your application was submitted without any errors.

It's important to remember that a wedding loan will add to your total debt, which can affect your credit score and your debt-to-income ratio. This may reduce your chances of being approved for other loans, such as a mortgage or car loan. Therefore, it's crucial to ensure that you can afford the monthly instalments and consider how long you want to be paying off your wedding loan.

Budgeting for wedding rings

Wedding rings are a big investment, and it's important to budget for them accordingly. Here are some tips for budgeting for your wedding rings:

Know the Market

Wedding rings can vary widely in price, depending on the type of metal, the presence of gemstones, and the brand. It's a good idea to do some research to get a sense of the market and what you can expect to pay for different types of rings. This will help you set a realistic budget and avoid overpaying.

Consider Alternative Materials

If you're looking for a more affordable option, consider rings made from alternative materials such as tungsten, titanium, or ceramic. These materials are durable, stylish, and often more budget-friendly than traditional metals like gold or platinum. For example, tungsten wedding bands are known for their hardness and scratch resistance, making them ideal for everyday wear, and they are often more affordable. Titanium rings are lightweight, strong, and have a modern appearance, making them a great choice for those with active lifestyles. Ceramic rings offer a unique alternative with a variety of colours available and are highly scratch-resistant.

Shop Around

Don't be afraid to shop around and compare prices from different jewellers. You may find significant price differences between stores, especially when it comes to alternative metals. Online stores often offer a wider range of options and more competitive prices than traditional brick-and-mortar stores.

Payment Plans

If you're not able to pay for the rings upfront, many jewellers offer payment plans or financing options. These plans can help you spread out the cost of the rings over a period of time, making them more affordable. Some stores may offer their own financing options or credit cards with special promotions and limited interest. However, be sure to read the fine print and understand the terms and conditions before committing to any payment plan.

Discuss with Your Partner

Communication is key when it comes to budgeting for wedding rings. Discuss your budget and preferences with your partner to ensure you're both on the same page. Traditionally, each person pays for the other's ring, but modern couples may choose to split the cost or use money from a shared wedding fund. It's important to find a solution that works for both of you and doesn't strain your finances.

Prioritise What's Important to You

Ultimately, the most important thing is that you and your partner are happy with your wedding rings. If you have your heart set on a particular style or material, be willing to allocate a larger portion of your budget to the rings. On the other hand, if you're content with a simpler or less expensive option, you can allocate more of your budget to other aspects of your wedding or honeymoon.

Frequently asked questions