George Boyle
Planning a wedding can be exciting, but it's important to make smart financial decisions. Wedding rings can be expensive, with the average cost in 2024 being $5,200, so it's crucial to explore various payment options. Paying in cash is ideal, but if that's not possible, financing options like credit cards, “buy now, pay later” plans, personal loans, or jeweler-specific payment plans can help make your purchase more affordable. It's essential to do your research, understand promotional deals, and choose a plan that fits your budget to ensure you don't overextend yourself financially as you start your new marriage.
| Characteristics | Values |
|---|---|
| Average cost of an engagement ring | $5,200 (2024) to $5,500 (2023) |
| Cost range | Less than $1,000 to $10,000 |
| Financing options | Credit cards, "buy now, pay later" plans, personal loans, jeweler financing, savings accounts, store credit cards |
| Credit card considerations | 0% APR for 6-21 months, then high interest rates, credit score impact, purchase protection, sign-up bonuses, cash back |
| "Buy now, pay later" plans | No interest, four equal payments due every two weeks, soft credit check, late payments impact score |
| Jeweler financing | Low promotional interest rate, may not have the best terms or interest rates, no cash back |
| Savings accounts | High-yield savings accounts, "buckets" for ring savings |
| Store credit cards | Special interest period, additional discount, deferred interest charges |
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What You'll Learn
Using a credit card with a 0% introductory APR
When choosing this option, it is important to select a card with a suitable introductory period. These cards typically offer 0% APR for 12 to 21 months, after which the regular APR, which is often higher than other financing options, will apply. For example, the Wells Fargo Reflect® Card offers 0% intro APR for 21 months, followed by an ongoing APR of 17.24% to 28.99%. The Chase Freedom Unlimited® card offers an intro APR of 0% for 15 months, after which the APR becomes 18.99% - 28.49%.
It is crucial to ensure that you can pay off the entire balance within the promotional period to avoid high-interest charges later. You should also consider the credit limit on the card, as purchasing a ring that exceeds 30% of your overall available credit may negatively impact your credit score.
Additionally, some cards with 0% introductory APR may offer sign-up bonuses, cash back, or other rewards, providing further benefits to this financing option.
Before selecting a credit card, it is always important to carefully review the terms and conditions, including any fees associated with the offer and the regular APR that will apply after the introductory period ends.
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Store financing options
- Buy now, pay later (BNPL): BNPL services, such as Klarna and Affirm, allow you to make a partial payment at the time of purchase and then pay off the remaining balance over a few weeks or months. These services typically don't charge interest if you pay on time, but late payments can harm your credit score.
- Jewellery credit cards: Some jewellers offer promotional interest-free or low-rate financing options through jewellery credit cards. However, you'll need to pay off the balance within a certain timeframe, typically 6 to 18 months, to avoid high-interest rates.
- In-house financing: Jewellery stores may offer their own financing plans, which can be more flexible in terms of credit requirements than traditional bank loans. However, interest rates for in-house financing tend to be higher.
- Layaway: Some jewellers, such as Brilliant Earth, offer layaway plans that allow you to make monthly payments towards your ring with no interest charged. However, there may be restocking fees if you cancel your purchase.
When considering store financing options, it's important to carefully review the terms and conditions, including promotional periods, interest rates, and monthly payments. Additionally, be sure to set a budget and only borrow what you can comfortably afford to repay to avoid financial difficulties.
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Personal loans
When considering a personal loan, it's crucial to have a plan to repay the debt and avoid financial trouble. Create a budget and payment timeline that aligns with your financial goals. Additionally, consider your creditworthiness, as you'll typically need good or excellent credit to qualify for a personal loan with a low-interest rate.
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$15.95
Buy now, pay later plans
While it is ideal to pay for a wedding ring in cash upfront, many couples may not be able to afford to do so. In such cases, "buy now, pay later" plans can be a great option. These plans allow you to purchase the ring now and pay for it in multiple instalments over time.
There are several companies that offer "buy now, pay later" plans for wedding rings. Here are some options:
ShopEZCredit
ShopEZCredit offers "buy now, pay later" plans for bridal sets, with instalments as low as $59. You will need to make a down payment, but you won't need to pay the full price upfront. They offer a range of wedding ring sets and trio sets in white gold and yellow gold.
My Trio Rings
My Trio Rings offers "buy now, pay later" plans through Affirm. With Affirm, you can split your purchase into multiple budget-friendly payments. To create an Affirm account, you will need to provide your name, email, mobile phone number, birthday, and the last four digits of your SSN. Affirm offers loans with terms ranging from 3 to 36 months and APRs ranging from 0% to 36%. Affirm discloses all fees upfront and does not charge any hidden fees. If you pay off your loan early, you will receive a rebate for any interest that hasn't accrued.
Brilliant Earth
Brilliant Earth offers payment plans through loan servicers like Wells Fargo and Affirm. With Affirm, you can choose from multiple monthly repayment plans with APRs ranging from 0% to 36%. They also offer layaway payments, which allow you to pay towards your ring with no interest charged. However, layaway payments are non-refundable after 30 days from the initial purchase date, and a restocking fee of 20% will be deducted if you cancel after this period.
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Saving accounts
Saving for a wedding ring can be challenging, but with discipline and commitment, it is achievable. Here are some tips for using a savings account to fund your dream ring:
Set a Realistic Budget
Firstly, carefully consider your finances and set a realistic budget. The average engagement ring costs around $6,000, but this amount is not set in stone. You might decide to spend more or less, depending on your circumstances. Remember, the perfect ring for your budget is out there, and sticking to that budget will ensure you don't overextend yourself financially.
Choose the Right Metal
Wedding rings are traditionally made of metal, and it is recommended that both partners' rings be made from the same metal to avoid wear and tear issues. 14K gold is the lowest-priced and most durable metal, so it is a cost-effective option. If you prefer a more luxurious look and feel, platinum is a good choice but comes at a higher price.
Understand Diamond Grading
Diamonds are graded based on the 4Cs: Cut, Color, Clarity, and Carat Weight. A small, clear, and white diamond with a high grade in these categories will usually be more expensive than a larger, cloudy, or slightly yellow diamond. However, if your partner is not too particular about the diamond's characteristics, you can get a larger stone for a lower price.
Save Mindfully
To ensure you stick to your budget, set up automatic transfers from your checking account to a dedicated savings account for your ring fund. Start with a small amount each week, and increase it when you can. This way, you can save without feeling the pinch, and you'll also benefit from earning interest on your savings.
Make Sacrifices
Saving for a big purchase often means sacrificing smaller luxuries. Hold off on that new stereo system or expensive suit, and put the money you would have spent towards your ring fund. These sacrifices are temporary and will be worth it when you see the joy your ring brings to your partner.
By following these steps and staying committed to your savings plan, you'll be well on your way to purchasing the wedding ring of your dreams without breaking the bank.
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Frequently asked questions
It is recommended to do your research and save money before buying a wedding ring. You can also negotiate with the jeweler for a discount if you pay in cash.
There are many financing options available for buying a wedding ring, including credit cards, “buy now, pay later" plans, personal loans, and in-store financing.
When using a credit card to finance a wedding ring, it is important to consider the interest rates and choose a card with a low or 0% introductory APR. Make sure to pay off the balance before the introductory APR period ends to avoid high-interest charges.
Yes, you can consider using a service like Gage Diamonds, which offers in-house financing with no credit needed and a low-interest rate of 4.95% for 12 or 24 months.
