Franklin Dean
Wedding rings are a significant financial commitment, with the average wedding in the US costing $35,000. Two-thirds of newlyweds go into debt to pay for their wedding, and the wedding ring is often a large part of this expense. There are several ways to finance a wedding ring, including personal loans, credit cards, and financing plans offered by jewelers. Personal loans can be secured or unsecured, with the former requiring collateral and the latter requiring a good credit score. Credit cards can also be used, although this is not recommended due to the potential for high-interest debt. Financing plans offered by jewelers may be a convenient option for those without strong credit, although it is important to understand the terms and potential risks of any financing offer.
| Characteristics | Values |
|---|---|
| Average amount spent on an engagement ring | $5,200 in 2024 |
| Range of amount spent on an engagement ring | $3,000 - $15,000+ |
| Average wedding cost | $35,000 |
| Percentage of newlyweds who went into debt for their wedding | 66% |
| Percentage of newlyweds who considered divorce over financial disagreements | 16% |
| Most popular stone for engagement rings | Diamonds (83%) |
| Percentage of cost saved by choosing lab-grown diamonds | 50-70% |
| Average credit score required for a zero-interest credit card | 690 |
| Average promotional period for zero-interest credit cards | 15-21 months |
| Types of personal loans | Secured, Unsecured |
| Engagement ring financing options | Personal loans, Credit cards, In-store financing, Payment plans with jewellers, Buy now pay later |
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What You'll Learn
Personal loans
The cost of weddings and engagement rings is rising, with the average wedding in the US costing $35,000. Many couples are looking at alternative ways to fund their special day and their rings. Two-thirds of newlyweds go into debt to pay for their wedding, and 16% have considered divorce due to financial disagreements.
It is important to consider your financial situation and budget carefully before taking out a loan. Be sure to shop around for the best rates and only borrow what you can afford to repay.
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Credit cards
First, check your credit score. Having a good to excellent credit score (typically 690 or higher) can qualify you for credit cards with 0% introductory APR, which means you can finance your wedding ring without paying any interest for a specified period, usually between 6 and 21 months. This option is ideal if you can pay off the balance within the promotional period, as interest rates can be high after this period ends.
If you have a lower credit score, you may still be able to obtain a credit card for wedding ring financing, but the terms may not be as favourable. You may be eligible for a "buy now, pay later" plan, which allows you to make smaller payments over time, sometimes with no interest if paid on time. However, be sure to read the fine print, as these plans can come with high interest rates and fees if payments are missed or not made in full by the deadline.
When using a credit card for wedding ring financing, it is crucial to set a budget and only borrow what you can comfortably afford to repay. This will help protect your credit health and ensure you don't take on more debt than necessary. Additionally, consider the interest rate on the credit card and whether you will be able to make the payments on time. Personal loan rates are typically lower than credit card rates, so if you are deciding between the two and don't qualify for 0% introductory APR, a personal loan may be a more cost-effective option.
Overall, financing a wedding ring with a credit card can be a convenient option, especially if you have a good credit score and can take advantage of 0% introductory APR offers. However, it is important to do your research, compare different credit card options, and ensure you have a plan to repay the debt to avoid financial trouble.
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In-store financing
Wedding and engagement rings are often among life's priciest purchases, and many couples may not be able to cover the cost upfront. In-store financing is a popular option for those looking to buy a ring without having to pay the full amount immediately.
Many major jewellery retailers offer in-house financing to help customers pay for wedding and engagement rings. This option is best for convenience, especially if you don't have strong credit. In-store financing options include payment plans, layaway plans, and buy now, pay later schemes.
With payment plans, you can choose from a variety of plans from loan servicers, like Wells Fargo or Affirm. You will enter into an agreement with an understanding of your interest rate, monthly payments, and promotional periods. Affirm Financing offers monthly repayment plans with starting rates as low as 0% APR for well-qualified buyers, with special financing payment plans of up to 36 months.
Layaway plans allow you to make monthly payments on a purchase after an initial deposit. Layaway can be a good option if you want to ensure that the ring you want is not purchased by someone else. However, layaway payments are non-refundable after 30 days from the initial purchase date, and if you cancel after 30 days, a restocking fee of 20% of the full purchase price will be deducted from the amount paid.
Buy now, pay later plans are available at most retailers, including jewellery stores, and are an option for borrowers with bad credit. Lenders do not require a hard credit check, and you may be able to secure a 0% offer even with fair or bad credit.
No matter which form of financing you choose, it's important to have a plan to repay the debt and avoid financial trouble.
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Budgeting and saving
The first step in budgeting and saving for wedding rings is to have an open and honest discussion with your partner about your finances and preferences. Be clear about what you can afford and what you are willing to spend on the rings. Consider your savings, income, and expenses, and decide how much you can realistically set aside for the rings. It is crucial to manage expectations and ensure you are both on the same page to avoid conflict and resentment.
Once you have determined your budget, you can start researching and comparing different ring options within your price range. Consider the type of metal, gemstones or diamonds, and the overall design. Browsing and comparing different rings will help you find options that fit your budget and preferences. Keep in mind that diamonds, gemstones, and certain metals like platinum will increase the cost. You may also consider alternative options such as lab-grown diamonds, which can be more affordable without compromising quality.
To save for the wedding rings, you can explore various financing options or create a savings plan. Financing options include personal loans, jeweler payment plans, credit cards, or buy now, pay later schemes. Each option has its own considerations, such as interest rates and repayment terms, so be sure to understand the details before committing. Alternatively, you can start setting aside a fixed amount regularly to save up for the rings. This may involve cutting back on non-essential expenses or finding additional sources of income to boost your savings.
Remember, the most important aspect of wedding rings is the symbolism of your commitment to each other. The amount you spend does not equate to a happier life together. Focus on finding rings that hold meaning for you as a couple, regardless of their price tag.
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Alternative stones and second-hand rings
While diamonds remain the most popular stone for engagement rings, many couples are now opting for unique and alternative gemstones. One of the most important factors when choosing an alternative stone is durability. While diamonds are incredibly hard, gemstones like sapphires, rubies, and morganites are also durable enough for everyday wear. For instance, a user on Reddit mentions that their family heirloom sapphire ring has been worn daily for over 50 years and is still in perfect condition. Another user recommends sapphires and rubies be set in a bezel or tab prong to protect the stone. Moissanite is another popular alternative to diamonds, as it is almost as hard as a diamond and is significantly more affordable.
For those who want a coloured gemstone, emeralds, topaz, aquamarine, and citrine are excellent options. Topaz, for example, has a dazzling array of colours ranging from vibrant blues to warm yellows and pinks. Citrine is also an attractive choice for couples on a budget, as its affordability compared to other gemstones makes it a popular alternative. For those who prefer a colourless stone, moissanite and white sapphire offer the look of a diamond without the high price tag.
Another way to save money on an engagement ring is to buy second-hand. With the diamond market’s recent crash, new diamonds cost less, and an even better deal can be found on a second-hand ring. Repurposing a family heirloom jewel or ring is also an option for those who want a second-hand ring.
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Frequently asked questions
It is unclear exactly how many people finance their wedding rings, but it is a popular option. Two-thirds of newlyweds go into debt for their wedding, and the average wedding costs $35,000.
There are several ways to finance a wedding ring, including:
- Personal loans
- In-store financing
- Credit cards
- Buy now, pay later plans
- Payment plans with a jeweler
The best financing option for a wedding ring depends on your financial situation and goals. If you want a convenient option and don't have strong credit, in-store financing may be a good choice. If you have good credit, you may want to consider a personal loan to take advantage of competitive interest rates. If you want to avoid interest, you can use a 0% introductory credit card, but be mindful of the credit limit.
Yes, there are alternatives to financing a wedding ring. You can save up enough money to pay for the ring upfront or consider lowering your budget. You can also explore secondhand rings, which can be more affordable.
Financing a wedding ring can be risky as it may take a long time to pay off the debt, especially if you are unable to pay off the loan within the promotional period. It is important to consider how financing a wedding ring may affect your financial goals and ensure you can afford the repayments.
