Engagement Ring Financing
- When you finance an engagement ring, you borrow money to pay for your ring and pay back that money over time (often plus interest).
- Engagement ring financing can be done with credit cards, buy now, pay later (BNPL) companies, personal loans or directly with the jeweler.
- It’s possible to avoid paying interest or fees when you borrow money for your ring, but you’ll need good to excellent credit.
How to finance an engagement ring
| Cost | Time | Best if… | Risks | |
|---|---|---|---|---|
| Credit card | Free of interest if you use a 0% APR credit card, or could cost thousands if you use a regular credit card and pay it off slowly | 6 – 21 months for a 0% APR card | You have excellent credit and qualify for 0% financing | Expensive if you use a regular credit card or don’t pay off your ring in the promo period |
| Buy now, pay later | Free of interest if you pay within 6 weeks, then late fees | 6 weeks | You can pay off the ring fast | Late fees if you can’t pay off the ring on time |
| Financing with a jeweler | 0% – 36%+ APR, depending on the jeweler and your credit | Typically 6 – 18 months for 0% financing | You have excellent credit and qualify for 0% financing | Even if you qualify for an interest-free loan, you’ll typically start paying interest if you can’t pay it off in 6 to 18 months |
| Personal loan | 6% – 36% APR, depending on the lender and your credit | Typically 24 – 60 months | You need time to pay off the loan | Could be a very expensive way to pay for your ring if you need a long time to pay it off or only qualify for high rates |
Credit card
How it works: You can avoid paying interest on your engagement ring when you use a 0% APR credit card or when you can afford to pay off your credit card in full before the next statement period. Both of these methods will help you avoid paying interest on your ring.
Time: You’ll have anywhere from six to 21 months to pay off your ring interest-free with a 0% APR card, depending on how long the promotional period lasts.
Avoid paying over a long period of time with a regular credit card. Credit card interest rates are higher than personal loan rates on average, and financing with a credit card could cost you thousands of dollars if you don’t have a promotional deal — even more than the cost of your ring if you take a long time to pay it off.
Let’s say you buy a $5,000 ring and can afford to make monthly payments of just under $125. It will take you seven years to pay off the ring with the average credit card interest rate (24.28% as of this writing), and you’ll pay $5,438 in interest — more than the cost of the ring.
Buy now, pay later (BNPL)
How it works: Some jewelry retailers partner with buy now, pay later companies to allow you to buy the ring and pay it off interest-free in four payments.
Time: You’ll have six weeks to pay off your ring with a typical BNPL company.
Avoid if you won’t be able to pay the ring off in time, since you’ll rack up late fees. Take a hard look at your budget to make sure you can afford a quick payoff — 41% of BNPL users have paid late in the past year.
Financing with a jeweler
How it works: Some jewelers offer jewelry credit cards with promotional interest-free or low-rate financing options for engagement rings, but you’ll need to agree to pay the ring off within a predetermined time period.
Time: To maintain your low rate, you’ll need to pay off your ring in a certain amount of time, typically six to 18 months for 0% financing. After that, you’ll pay higher rates on any remaining balance.
Avoid if you don’t qualify for low- or no-interest financing.
Personal loan
How it works: You can take out a personal loan for just about anything. Personal loan rates are typically lower than credit card rates, so if you’re deciding between the two and don’t qualify for 0% financing, choose a personal loan.
Time: You’ll choose your repayment term at the start of your loan, and typical loan terms are between 24 and 60 months. Choose a short-term loan when you can — your monthly payments will be higher, but you’ll pay less money in interest.
Avoid if you only qualify for high interest rates and consider engagement ring financing alternatives.
No matter what type of engagement ring financing you use, pay attention to the terms and conditions. You need to know:
- Time: How long you have to pay off the ring, and whether your lender will charge late fees or higher rates after a certain amount of time
- Fees: Any fees you’ll pay, including late fees or, if you’re getting a personal loan, an origination fee that the lender takes before sending you the money
- Monthly payment: How much you need to pay every month
- Total amount owed: Calculate your credit card interest or use a personal loan calculator to compare each type of financing and choose the cheapest one with monthly payments you can afford
How to budget for an engagement ring
If you’re one of the 29% of Americans who rarely discuss finances, consider making an exception for your engagement ring and other big-ticket purchases. Here’s how to approach that conversation and your budget.
- Look at your savings, income and expenses. If you don’t have enough to cover a ring in your savings account, make a budget to see how much you can afford to set aside for the ring. You can do this on paper or with a personal finance app.
-
Have a conversation with your partner. You may be hesitant to talk about money before you buy the ring, but there’s nothing less romantic than taking on too much debt. Ask questions about what your partner wants. Do they want a diamond or a different stone? Are they interested in a brand new ring, or would they be happy getting it secondhand? Is there a family heirloom jewel or ring that can be repurposed?
Be honest about what you can afford and work together to find a ring that won’t put you in the hole before you even start planning your wedding. Having honest financial conversations can help keep your relationship healthy. -
Choose your ring. Instead of trying to fit your budget to your ring, make choosing the ring the last step in your process. Two-thirds of newlyweds went into debt for their wedding, and 16% have considered divorce over financial disagreements. Beat the odds by working together from the start and being honest about your priorities and what you can afford.
Consider how financing your engagement ring might affect your big-picture financial goals. Create a budget and payment timeline that allows you to prioritize important goals like saving for a home or paying off student loans.
Alternatives to engagement ring financing
With wedding costs on the rise — the average wedding rings up at $35,000 — many newlyweds are considering alternatives to the typical diamond ring. Here are a few ways to save money on your engagement ring without sacrificing what you want.
Buy a secondhand ring
With the diamond market’s recent crash, new diamonds cost less — and you can snag an even better deal on a secondhand ring. Check out online secondhand retailers like Have You Seen the Ring and Louped to get the ring you want at a fraction of the price.
Negotiate
It’s possible to negotiate the price of your engagement ring with some retailers, especially if they’re local jewelers who are in control of their pricing. Ask your jeweler if there’s any way to get a lower price. Don’t expect huge savings, but your jeweler may be willing to knock some money off the purchase price if you ask politely.
Put your engagement ring on layaway
Some retailers offer layaway plans (also called customer financing), which allow you to reserve the ring you want and make interest-free payments toward it for a set period of time — typically 12 months. Just make sure you can pay off the ring in time or you may have to pay a restocking fee.
Choose a unique stone
Lab-grown diamonds from retailers like Brilliant Earth and gemstones like rubies and sapphires are increasingly popular with today’s brides. Choosing an alternative gemstone or a lab-grown diamond could be good for the environment — and your wallet.
Frequently asked questions
Taking on debt for nonessential items like engagement rings is generally a bad idea unless you qualify for a no-interest financing option like a 0% APR credit card or an interest-free, short-term loan from a buy now, pay later app.
You can get a bad credit loan or credit card for bad credit with very low credit scores, but just because you can doesn’t mean you should. Loans and credit cards designed for people with bad credit are expensive because they come with higher rates and fees.
You’ll likely face similar problems if you finance with the jeweler. It may feel like your jeweler is doing you a favor by hooking you up with financing despite your bad credit, but take a hard look at the agreement before signing it. It’s likely to come with high interest rates and fees, making your ring even more expensive to pay off.
The “three-month rule” is to set aside three months of your salary to pay for the engagement ring. But before you start crunching the numbers, know that this “rule” came directly from a 1930s marketing campaign for — you guessed it — a diamond company.
The only rule to consider when deciding how much to budget for a ring is how much you can afford to spend.
Yes, you can finance an engagement ring with a credit card, loan or buy now, pay later program. You can also talk directly to the jeweler to see if they have any special financing offers.
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