So you have been planning to pop the big question to your love, what better to seal your love with a huge rock… an Engagement ring that will leave the jaws open in utter amazement. If you have it all planned out then just head out and choose your pick. But if you are the 2nd category and are yet to decide then let me tell you, my friend, that when you buy an engagement ring, diamond or otherwise, it’s best to pay cash. But if that isn’t your cup of tea then there are some great financing options available.
There are many ways in which you can buy an engagement that is symbolic of your love.
- Most jewelry stores offer 2 financing options- short term loan and deferred financing. Short term loans from jewelry stores are offered at 9.90% APR for 2 years. A payment plan refers to an agreement by which you make regular payments before you take ownership, similar to layaway, but these are actual loans. Your credit history will be pulled and your score will be used to determine approval and interest rates. Deferred financing gives you several months of 0% interest that accrues when the deferred financing period ends. If you pay off the entire loan before the period ends, you owe no interest. If you don’t, all of that interest will accrue and appear on the loan balance.
- Credit cards are the most convenient way to buy an engagement ring. You need to use your credit card wisely by paying the entire balance each and every month. Credit cards have high interest rates, they let borrowers make small minimum payments that increase the length of time it takes to pay off the debt (and increases the interest you’ll pay). Some credit cards offer excellent deals that make buying on a budget easy. The best way is to pay off the ring before the promotional APR expires.
- A personal loan is also an option that you can explore to finance an engagement ring. It demands a lot of interest, but if a 0% financing offer is not available to you then opting for a personal loan will help. Three- or five-year personal loans are available to most applicants with at least some credit history. Interest rates vary widely based on your creditworthiness.
Going for a planned approach to buying an engagement ring is always prudent. Do not get into a debt trap, ensure your finances are sorted before you take the big leap. Explore your financing options to buy an engagement ring wisely and make a beautiful start to your life.