Before spending a huge amount of money on a ring, be sure you are making the best financial choice
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First comes love, then comes: financing an engagement ring.
Before the wedding bells comes the engagement ring bill, and if you want to start out a marriage on the right foot – meaning without debt – choosing the right method to finance that ring is a good place to start.
Here are four ways to finance an engagement ring:
1. Rewards credit card.
If you plan ahead, you could sign up for a new card with a major bonus and meet the minimum spend with this one purchase. Be sure to pay it in full immediately though, as the interest charges will outweigh the rewards on a purchase of this magnitude, even if you pay it off in just two months.
2. Interest-free financing.
Many jewelry stores will offer interest-free financing for a year or more. However, David Kruger, owner of Kruger’s Diamond Jewelers in Austin, Texas, warns that some long interest-free financing deals could result in you paying a higher price than you should for the ring.
“If you don’t get it paid off on the 365th day of the loan origination, then on the 366th day a lot of these places could go back and charge interest from the first day, and it could be huge,” says Kruger.
Penalties like this aren’t as common as they once were, but you should still know what the fine print says before signing anything.
3. No-interest credit card.
Similar to an in-store or bank offer of interest-free financing, a no-interest credit card is another option for financing a ring, and you may be able to qualify for a card that has a long period of charging no interest. Be sure you know when you need to make that last payment by so you don’t end up forgoing the perks of free financing.
As a family business that’s been around since 1929, Kruger still offers his customers what some consider an old-fashioned way of financing: Layaway.
“Being an independent jewelry store, we get to do whatever we want to do,” says Kruger. “The store that you want to do business with is a store that is looking at you as a customer and not as a sale.”
When you’re shopping for a ring, consider more than just the price. What kind of financing deal can you afford? How flexible will the store be? By doing some research ahead of time, you can walk down the aisle looking toward the future instead of worrying about the debt of your past.