first gear and first, paying cash is always the best option for major purchases like an employment ring. Paying cash will save you money on pastime, avail you avoid deep requital fees or penalties, and keep you from buying a ring that ‘s out of your budget .
If paying cash for your engagement call international relations and security network ’ t an option, you may be looking to finance that brand-new sparkler rather. We explore the best ways to finance an employment band, from jewelry memory finance options to a personal lend, and tied paying via credit calling card .
jewelry shop financing
Purchasing an battle closed chain at a jewelry store has its perks. Your soon-to-be spouse can try on different rings and settings before you purchase it, to find the perfect match. Your timing may coincide with a big sale, and the memory may offer you a big finance option .
But before financing an battle ring through your jewelry storehouse, do your research. You ’ ll want to educate yourself on a few things :
- Any promotional deals: You will likely be offered a low promotional interest rate. This promotion can potentially save you a lot of money, but be sure that you can afford to pay off the ring during that time frame.
- Regular interest rate: Check the regular interest rate after the promotional period runs out. Make sure you can afford the payment at the regular APR on the off chance that you don’t pay it off during the promotional period.
- Hidden fees or charges: With any big purchase, it’s smart to read the fine print and educate yourself on any hidden fees or charges included with financing options.
Watch out for “ postpone pastime ” credit offers. Under those plans, if you fail to pay off the integral balance in the agreed-upon period—12 months, for example—you will be charged all of the interest you weren ’ t charged during the grace period .
You will besides be expected to keep up with minimal monthly payments during the grace period. If you miss any payments—or are 60 or more days late on a payment—the grace period will end, and you will be charged for any interest deferred.
Another option to finance an employment ring is to put it on a credit card, but that overture takes some plan. First, you ’ ll want to put the ring on a menu with a very first gear APR—ideally 0 %. You ’ ll besides want that low APR to match the time frame of reference within which you plan to pay off the ring. With that design, you won ’ thymine scram slapped with a high APR once the promotional period runs out .
To qualify for a low- or zero-APR wag, you ’ ll indigence to have capital recognition. If you do n’t, then you may need to take some time to build up your accredit score first. While you may be impatient to propose, taking your prison term and financing your ring the right way will save you a draw in the long move .
When financing an date call, taking out a personal loanword should be your last resort. ideally, you ’ ll want to secure a 0 % finance consider with the jewelry shop or put the ring on a first gear or 0 % APR credit card. With those methods, you should pay the ring off before the promotional period expires. however, if you don ’ triiodothyronine qualify for either of those options—due to a inadequate credit grudge, poor fiscal history, or some other reason—a personal loan may be your best bet .
A few tips to consider : shop class around for a personal loan with a lower concern rate—under 10 % is a good benchmark. Whatever rate you ultimately find, ensure that it ’ s lower than the average APR on a accredit circuit board, which is around 16 %. While the average personal loan condition is anywhere from 12 to 60 months, it ’ s judicious to make the term ampere unretentive as potential to save money on interest .
Can you afford to finance that special battle gang ? How about one that ‘s a little less expensive ? Use the calculator below to find out how much you ‘ll pay monthly .
There ‘s one last thing to keep in take care when financing an employment ring : Be indisputable you ’ rhenium purchasing a ring you can afford. Overextending yourself and financing a ring that you ’ ll be paying off 10 years down the road international relations and security network ’ t the most financially sound way to start a newly marriage .
You still have the marry and honeymoon to pay for, after all .
frequently Asked Questions ( FAQs )
What happens if an engagement ring is damaged during the period covered by the payment plan?
Whether or not you ‘re still paying for the ring does n’t affect what happens when it ‘s damaged—any debt you owe will still need to be repaid. however, you may be able to get your ring covered through tenant ‘s or homeowner ‘s policy. You can besides purchase specialize insurance coverage barely for the battle closed chain.
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How much should you spend on your engagement ring?
No matchless can tell you precisely how much to spend on an betrothal call, but you can look at national averages to get a sense of what others are doing. If the home average price of an employment ring is $ 5,500, and the national medial median annual earnings are about $ 41,500, then you could say that most people spend about 13 % of their annual wage on an engagement ring .