man putting engagement ring on fiancée

The Top 4 Engagement Ring Financing Options

4-Minute ReadOctober 22, 2021


Congratulations! You’ve found the special someone that you want to spend the rest of your life with. Now that you’ve decided to propose, the next step is to pick out and pay for the engagement ring.

It’s no secret that buying an engagement ring can make a dent in your finances. According to The Knot’s 2020 Jewelry and Engagement Study, the average cost of an engagement ring is $5,500.

With that in mind, it’s important to consider all of the available financing options, and choose the one that fits your budget. Let’s take a look at the top three ways to finance an engagement ring.

Ways To Finance An Engagement Ring

No matter how you pay for the engagement ring, keep in mind that your proposal budget is personal, and you shouldn’t worry about spending a certain number of a month’s salary on it.

Here are some of the best engagement ring financing options to help cover the cost of this special piece of jewelry.

1. Pay With Your Savings

As with any major purchase, paying for a ring with your savings is usually the cheapest and most hassle-free option. That’s why it’s recommended that the proposer start saving for an engagement ring several months in advance.

When you pay for the engagement ring upfront, you don’t have to worry about late payment fees or paying interest on the purchase. Plus, it will prevent you from buying a ring that’s outside of your budget.

If you plan to use your savings to pay for the engagement ring, take a look at your financial status and goals before setting a maximum budget for the ring. Then, spend the weeks leading up to the purchase cutting back on nonessential spending and saving windfalls to meet your goal.

2. Use Jewelry Store Financing

There are several perks to buying your soon-to-be-betrothed’s ring from a jewelry store. Not only can your future spouse try on various rings and settings in the store, but many jewelers also offer in-store financing options.

Some jewelry stores offer payment plans that feature no- or low-interest payment periods for proposers who need extra time to pay off the engagement ring. While these promotional periods can help you save money in the short-term, your interest rate on the remaining balance will increase once the promotion ends. It’s important to ensure that you’ll be able to afford the regular interest rate on the ring purchase in case you don’t pay it off during the promotional period.

Before signing on the dotted line, be sure to check for hidden fees or extra charges associated with the jeweler’s financing plan.

3. Open A Credit Card With 0% Introductory APR

Another way to buy an engagement ring with little to no interest is to use a 0% introductory credit card. However, it’s vital that you match the card’s promotional period to your proposal timeline so that you can pay off as much as possible before the regular interest rate kicks in. Similar to a financing plan from a jewelry store, the regular APR on the credit card will go into effect as soon as the card’s promotional period ends.

This payment method works best if you have a good credit score that qualifies you for a high credit limit. That way, you can pay off the engagement ring cost during the promotional period and avoid any interest payments.

4. Take Out A Personal Loan

A personal loan may be a viable engagement ring financing option if you have a strong credit score and want to pay off the purchase over the course of several months. If you qualify for a personal loan, you’ll receive a lump sum payment to finance the ring purchase, and then you’ll be required to repay the debt in monthly installments.

Before you take out a personal loan, make sure the monthly cost of repaying the loan will fit your budget. As with other loan types, it’s important to borrow within your means.

Can I Finance An Engagement Ring With Bad Credit?

Although it can be more difficult to secure funding for an engagement ring if you have a low credit score, there are still ways to cover the cost of the ring.

Some jewelry stores offer financing options specifically for people with lower credit scores, which can include promotions or sales to help lower the total cost. Shop around to find local or national jewelers that offer deals that can help offset the ring’s price tag, such as a no down payment option.

However, most no- or low-interest credit cards require a credit score of at least 690, so that payment method may not be an option for borrowers with lower credit scores. 

Can I Finance A Wedding Ring?

When you’re budgeting for an engagement ring, it’s a smart idea to plan ahead for how you’ll pay for both you and your partner’s wedding rings. According to The Knot, the average cost of a wedding band for males is $500, and the average for female bands is $900.

Although the cost of wedding bands is typically lower than the price of an engagement ring, you may still want to consider financing options for those purchases. Luckily, the same 3 payment methods are available for both engagement rings and wedding bands. However, since wedding bands are usually more affordable, many couples pay for wedding bands using their savings to avoid interest or late payment fees.

Final Thoughts

Getting married is a significant commitment, and paying for the engagement ring is, too. If you’re purchasing an engagement ring using in-store financing or a no-interest credit card, be prepared to pay down the ring as soon as possible to avoid paying high interest fees.

Once your perfect ring is on the hand of your future spouse, it’s time to start planning the wedding. Check out our guide to the average cost of U.S. weddings, as well as how to budget and pay for them.

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