Rhiannon Hendricks
Getting engaged and married is an exciting time, but it can also be a financial burden. The average cost of an engagement ring in 2024 was $5,200, and the average wedding costs $35,000. Many couples may not be able to cover these costs upfront and will need to consider financing options. There are several ways to get a loan for a wedding ring, including credit cards, buy now, pay later plans, personal loans, and directly through the jeweler. This introduction will explore these options and provide advice on how to make smart financial decisions when planning a wedding.
| Characteristics | Values |
|---|---|
| Average cost of an engagement ring | $5,200 (in 2024) |
| Average cost of a wedding | $35,000 |
| Financing options | Credit cards, personal loans, buy now pay later (BNPL) plans, jeweler payment plans |
| Credit card interest rates | 20-22% APR |
| Credit score required for promotional rate | 690 or higher |
| BNPL providers with long-term financing options | Affirm, Klarna, Afterpay |
| Personal loan features | Fixed interest rates, fixed monthly payments, no collateral required |
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What You'll Learn
Using a credit card
Rewards and Cashback
Some credit cards offer rewards or cashback on purchases. When buying an expensive item like a wedding ring, you can earn significant rewards or cashback that can be redeemed for travel, statement credit, or other benefits. This can help offset the cost of the ring or even contribute to your honeymoon expenses.
Low Introductory APR
Look for credit cards with a low introductory Annual Percentage Rate (APR). This allows you to purchase the ring and pay off the balance over time without incurring high-interest charges. Make sure you have a plan to pay off the balance before the introductory period ends, as the APR may increase significantly afterward.
Purchase Protection
Credit cards often provide purchase protection, which is valuable when buying an expensive item like a wedding ring. This protection can cover theft, damage, or disputes with the seller within a certain timeframe after the purchase.
Liability Coverage
Your credit card may offer liability coverage or theft protection for jewelry purchases. This ensures that your ring is insured in case of theft or any issues with the product.
Credit Score Impact
Interest Charges
If you don't pay off the balance within the promotional period, you'll incur interest charges. Credit card interest rates can be steep, and the accumulated interest over time may exceed the cost of the ring. Calculate whether you can afford to pay off the ring within the promotional period or the next billing cycle to avoid these charges.
Before choosing to finance your wedding ring with a credit card, carefully consider your financial situation and the specific terms and conditions of the card. Compare different credit card options to find the one that best suits your needs and helps you maximize the benefits while minimizing potential drawbacks.
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Buy now, pay later plans
If you are unable to pay for a wedding ring with your savings, you can finance it through a "buy now, pay later" plan. This option allows you to purchase the ring immediately and pay it off in instalments over time.
There are several companies that offer "buy now, pay later" plans for wedding rings. ShopEZCredit, for example, offers a "buy now, pay later" program for bridal sets, with instalments as low as $59. My Trio Rings also offers a "buy now, pay later" option through Affirm, with loan periods ranging from 3 to 36 months and APRs from 0-36%.
When considering a "buy now, pay later" plan, it is important to keep in mind that you may need to make a down payment upfront. Additionally, be sure to review the terms and conditions carefully, including any required fees and interest rates, to ensure that you understand the total cost of the loan.
Another option for financing a wedding ring is to take out a personal loan from a lender or directly from the jeweler. Personal loans typically have repayment terms of two to seven years, with annual percentage rates starting around 6%. However, eligibility for personal loans often depends on factors such as credit score, income, and existing debt.
Ultimately, the best option for financing a wedding ring will depend on your individual financial situation and budget. It is important to consider your long-term financial goals and only borrow as much as you can comfortably afford to repay.
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Personal loans
It's important to keep your overall budget in mind and compare your options. Setting a budget and researching the market can help you make a smart choice that suits your preferences and financial situation.
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Payment plans with a jeweller
If you're looking to purchase a wedding ring, but don't want to pay the full amount upfront, a payment plan with a jeweller is a great option. Many jewellers offer financing options to help make your dream purchase more affordable. Here are some things to keep in mind:
In-House Financing:
Many jewellers, such as Hatton Jewellers, offer in-house financing options. These plans allow you to pay for your jewellery over time with flexible monthly instalments. Some jewellers offer 0% interest-free finance options, which can make the purchase more manageable. Be sure to ask the jeweller about their specific plans and requirements.
Third-Party Payment Plans:
If you don't want to set up a payment plan directly with the jeweller, you can consider third-party apps like Affirm. These apps allow you to make customised instalments over three, six, or twelve months. They often provide flexibility and security for your purchase.
Credit Cards:
Using a credit card to finance your wedding ring is another option. Depending on your credit history, you may qualify for a low-interest or 0% introductory interest credit card. Credit cards can offer benefits like cashback rewards and travel points. However, be cautious of high credit card interest rates, and ensure you can pay off the balance within the promotional period to avoid these extra costs.
"Buy Now, Pay Later" Plans:
"Buy Now, Pay Later" companies partner with jewellery retailers to offer interest-free payment plans, usually allowing you to pay off the ring in four payments. This option can be a good choice if you want to avoid interest fees, but be mindful that late payments may incur charges.
Personal Loans:
Personal loans are another way to finance your wedding ring. These loans provide a lump sum of money that you repay in monthly instalments. They can offer fixed monthly payments, making budgeting easier. However, personal loans often require good to excellent credit and little existing debt.
Remember to consider your budget and long-term financial goals when choosing a payment plan. Creating a payment plan with a jeweller can help you build your credit score and make your dream wedding ring more accessible.
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$15.95
Saving money and budgeting
Set a Realistic Budget
Determine a realistic budget that takes into account your financial situation and personal preferences. Use online tools like The Knot Budget Advisor to help set a budget. Having a clear financial limit will guide your decision-making process and ensure you don't overspend. Remember, the term "affordable" is relative, and what's affordable for one couple may be out of reach for another.
Educate Yourself
Educate yourself about the various factors that influence the cost of a wedding ring. Understand the 4 Cs of diamonds: Cut, Color, Clarity, and Carat weight. These factors determine a diamond's quality and price. For example, a diamond's price increases significantly at every quarter carat after reaching a carat, so buying just under a carat can save you money. Additionally, consider the type of metal used for the ring setting, as certain metals like platinum are rarer and more expensive.
Compare Prices and Shop Around
Don't settle for the first jeweler you visit. Take time to compare prices and browse similar styles online and in different stores. Shopping online gives you access to a wide range of retailers and price points. Visiting multiple jewelers will help you learn about different types of rings and find the best value for your budget.
Consider Alternatives
Explore cost-saving alternatives to traditional choices. For example, opt for lab-created diamonds instead of natural ones, or choose less common diamond shapes like pear or marquise, which are more budget-friendly. You can also consider other precious stones like sapphires or rubies, which are unique and meaningful. Additionally, shopping at consignment shops or for second-hand rings can help you find beautiful rings at a fraction of the price.
Focus on Meaning Over Resale Value
Remember that the ring is a gift and not an investment. Forget about resale value, micro-blemishes, or diamond heritage. Focus on what you and your partner truly want and love. A ring that holds symbolic meaning for both of you is more valuable than its monetary worth.
Saving for a wedding ring doesn't have to be overwhelming. By setting a budget, educating yourself, comparing options, and focusing on what truly matters, you can find a ring that fits within your financial plan and symbolizes your love.
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Frequently asked questions
The average cost of an engagement ring in 2024 was $5,200, but wedding rings can be much more expensive, with an average wedding costing $35,000.
You can finance a wedding ring through a credit card, a “buy now, pay later” plan, directly through the jeweler, or a personal loan.
You will typically need good to excellent credit to qualify for a loan with a low interest rate. You will also need to demonstrate little existing debt and a high income.
Using a credit card with a 0% introductory annual percentage rate (APR) can allow you to pay off the ring with no interest if you can pay off the balance before the promotional period ends. "Buy now, pay later" plans also typically don't charge interest if you pay on time.
You can save up for the ring by setting a monthly budget. You can also save money on the ring itself by purchasing the stone and band separately and getting it set by a jeweler.
