How to finance an engagement ring


Whether you’re surprising your other half or heading to the shops to select it together, there’s no hiding from the fact that engagement rings can be expensive. Indeed, for many of us, it will be the most expensive piece of jewellery we’ll ever purchase.

If you’re not lucky enough to have a pot of savings ready and waiting for this occasion, what are your options when it comes to paying for it?

Some jewellers offer interest-free credit

Shops sometimes offer the option of interest-free credit to fund larger purchases. If you don’t have the cash but know you can afford the loan repayments, this can be a good way to pay for an engagement ring, as with 0% interest, the ring is costing you no more than it would have done if you had paid for it upfront.

Indeed, there is an argument that as long as you can afford to pay the loan back, it may be better to do it this way even if you do have the money, as you can keep the cash in savings and earn (some) interest on it.

Normally, there is a minimum spend and you may have to put down a deposit.

Unfortunately, if you have a poor credit history, this may not be an option for you.

Hand of a caucasian adult woman with a diamond engagement ring on her left ring finger

Taking out a loan

If you don’t have the lump sum of cash you need to pay for the ring but know you can comfortably afford to meet repayments, taking out a loan from a lender may be another option.

Not all loans are created equal and the type of loan you go for will depend upon your circumstances. Short-term loans, for example, are those which are normally required to be paid off relatively quickly (usually in less than 6 months). Longer term loans tend to have lower interest rates.

Do a little research about the different loans that may be available to you. Check how much you’ll end up paying back in total, including interest. Just make sure that whichever option you go for, you will comfortably be able to meet the repayments.

Using your credit card

Using your credit card to fund a big purchase can help if you don’t have the cash available right now, but know you will do when the statement arrives. Credit cards have the added benefit that they offer some protection on big purchases.

If you have a good credit rating, it may be possible to get a credit card with 0% on purchases for a fixed period, giving you more time to pay off your engagement ring without paying any interest.

There are a number of different options when it comes to financing an engagement ring. What you go for will depend on your financial circumstances. Just remember, although the engagement ring is important, it’s only the beginning, so don’t overspend. Starting out as newlyweds free from financial strain is better than having the stress of money worries hanging over your relationship.


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