Wedding Ring Financing – How Does It Work?
Choosing a beautiful and valuable wedding ring is everyone’s dream. But there are a lot of people who have not saved any money for this big purchase. These people have to stick to the budget or look for wedding ring financing if they plan on getting that perfect ring. There are many financing plans out there and all you have to do is find the one that’s best for you. Some of these options include personal loans and in-store financing.
Here’s what you must consider before you make your decision:
What Is Your Income & Expenses?
If you haven’t saved a cent but you earn a high salary, you won’t have a problem buying that wedding ring. However, you still have to consider your expenses and how those influence your spending. If 90% of your income is spent on bills and car/mortgage payments, you’ll have a hard time putting money aside for a ring. The smart thing to do is to evaluate your income & expenses and then put together a plan based on that. That plan can either consist of you simply saving for a few months, or opting for a wedding ring financing option that you can afford.
. However, you still have to consider your expenses and how those influence your spending. If 90% of your income is spent on bills and car/mortgage payments, you’ll have a hard time putting money aside for a ring. The smart thing to do is to evaluate your income & expenses and then put together a plan based on that. That plan can either consist of you simply saving for a few months, or opting for a wedding ring financing option that you can afford.
Is There Any Saving Potential?
If you’ve already started looking for a ring, you probably know that there’s four C’s of diamonds that influence its price. Those C’s include Cut, Clarity, Color, and Carat. Truth be told, there’s plenty of ways to get more bang for your buck. When it comes to clarity, for example, most people can’t tell the difference between a clear diamond and one that’s got a few blemishes. Check out our blog on the four C’s of diamonds to find out more about each of these factors.
Why is Wedding Ring Financing Important?
Regardless of the price of the ring, it’s still valuable to every couple. When it comes to wedding ring financing, this is a good idea for most couples. No one should be discouraged when he-she has a smaller budget. If you choose to go the wedding ring financing route, there are 2 major benefits:
- You don’t have to delay your wedding due to a lack of money.
- You can get a payment strategy that fits your budget.
The Most Common Ways for Wedding Ring Financing
Credit card with 0% APR Promotion: This one is the most desirable and less risky way to finance a wedding ring. If you plan this properly, you can avoid the exorbitant interest rates that credit cards usually have. Buy the wedding ring through your new credit card before its 0% APR promotional period starts and pay off the debt before the 0% APR promotional period ends. This would only work if you know that your income will be enough to pay it off in that specific time constraint. If you don’t pay off the card within the 0% APR, then you will have to pay a high-interest rate. Some reward cards even offer a sign-up bonus which you can claim if you spend a certain amount of money.
A Personal Loan: If credit cards aren’t for you, you can opt for a personal loan to finance your wedding ring. You will have to pay interest on this loan, but the rates for personal loans tend to be manageable. Once you agree on an interest rate and period of time to pay off the loan, you’ll have fixed payments that you’ll have to make every month. These types of loans do require a good credit score, however, so make sure you’re in the green before pulling the trigger on this decision. If you have bad credit and the bank still gives you a loan, that loan will likely have a high-interest rate. In that case, a low-interest credit card may be a better option for you.
Wedding Ring Financing Through the Jewelry Store
Many jewelry stores offer in-store financing options for engagement and wedding rings. These jewelry stores usually offer deferred interest to accommodate their customers. Deferred interest sounds like a dream, but you should do your research before you make a very expensive mistake. If you’re confident you’ll be able to pay off the loan within the specified period, this can be the right choice for you. It is advised that while considering financing through a jewelry store, you should yourself the following questions:
- How long is the promotional period and what will be the interest rate after that?
- What is the method of assessing interest? Would it start from the day of the purchase of the wedding ring?
- In case you miss an installment, would the promotional rates be revoked or not?
Get a Loan from Family or Friends
If you’re close with your family and friends, getting an interest free loan from them would be best for you. Of course, it depends on your relationship and agreement, but most of the time family loans are interest-free. At the same time, you have to be considerate of their situation and make sure you don’t make them feel guilty if they can’t afford to loan you the money.
What If You Have Bad Credit?
If going through the bank or through the jewelry store itself is not an option for you due to your bad credit, the only option you really have is to ask your family for help. You might also find out that your family has an old yet still beautiful heirloom diamond ring that your parents would like to pass down to you and your soon-to-be wife. If that’s not an option either, consider postponing the big event for a few months so that you can save up some money. After all, love is forever so a delay of a few months shouldn’t be a problem.
The Bottom Line for Wedding Ring Financing
Involve your spouse when doing your wedding ring shopping. The times have changed now, and so did the traditional roles when it comes to these types of decisions. Nowadays, both spouses take their part in their wedding decisions. According to one research, over 40% of brides-to-be want to be a part of the wedding ring selection. 20% of the brides-to-be are willing to pay from their own pocket if that means they can get their dream wedding ring. Communicate with your partner and find a ring that suits both your taste and your wallet. The perfect ring doesn’t have to be a huge burden on you and your partner.
Regardless of the option that you choose for wedding ring financing, be sure to know all your options before you commit to it.
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