More likely than not, you haven’t had the opportunity to purchase an engagement ring before, so you probably don’t have much information or experience when it comes to buying one.How do you choose a setting? What about the carat weight? How about the diamond size?
You can walk into a reputable jewelry store or find an excellent online retailer and you can find an overabundance of helpful information about the product. Since there’s quite a bit of money involved here, there won’t be any regrets when it comes to learning all there is to know about engagement rings before making your purchase.
How Much Should You Spend On A Ring?
Generally speaking, a wedding/engagement ring should cost about 3 months’ salary, but not everybody follows that. Today, it’s typical that American individuals only spend around 2-weeks worth of paychecks on an engagement ring, according to data collected in 2019 by Upshot by Morning Consult. It’s averaged that people spend between $500-$3,000, with $1,900 being the median spent on an engagement ring.
Once your partner says “yes”, you now have the task of picking out the wedding bands. The average cost for a band for women is $1,500 and for men, it’s a much lower $550.
The cost depends on what type of metal has been chosen. White gold is less costly than platinum, which is the most expensive metal there is. Some women also prefer to have their bands diamond-filled to match their engagement rings, which will make the cost increase.
Most jewelry stores have their own line of credit through a credit card. You can usually get it for 0 percent APR if you have decent credit. You will then be responsible for repaying the fianced amount within the promotional period. A credit card is the best way to finance a ring so you can avoid paying for the interest.
If you choose to take out a personal loan to pay for the ring, you will accrue interest fees and it will add to the total repayment cost of the financed amount. It’s not the best option but if you can’t get a 0 percent offer, a personal loan would be your next choice. It’s better than putting it o a high-interest rate credit card.
As mentioned above, taking out a personal loan should be a last resort. You will want to see if there is a jewelry store that is able and willing to give you a credit card with 0% APR or a 0% financing deal. These methods will allow you to pay the ring off before the expiration of the promotional period. However, if you can’t obtain either of those options because of a low credit score, poor financial history, or another reason, you may need to consider a personal loan.
Financing Options in Store
There are plenty of perks when it comes to purchasing an engagement ring at a jewelry store. If your soon-to-be fiance is aware of the engagement, you can bring them there to try on different rings to find the ideal fit. You may even find a great sale and they could offer you a good financing deal.
However, before you choose to finance a ring, do your research.
When you finance an engagement ring, it works like anything else you would finance. You can apply for a loan that equals the amount of what you are trying to purchase. If approved, you use the funds to buy the ring. Depending on the lender, the process may or may not be simple. If you choose a bank loan, you may have to wait a few weeks to receive your money. If you go through an online lender, this may be a shorter timeframe. Unfortunately, online lenders often have increased interest rates.
Once your loan is available to you, you can use a card, cash, or check. Once you begin spending the money, you must begin the payback process. This is generally done through fixed monthly installments that may span out 1-7 years.