Ring Financing – Merits and Demerits

We all have that special person that makes our heart skip a beat. Spending the rest of our lives with such individuals will be a dream come through. But this is not a fairy-tale. Magic wands don’t work with engagements. You need an actual engagement ring to set the ball in motion. Of course, you don’t anticipate your would-be spouse saying no. And even though you are unsure of what their responses might be, making a move is better than doing nothing. That being stated, how do you finance an engagement ring?

Some people prefer purchasing engagement and wedding rings straight from their pockets or wallets. But not everyone has this financial capacity. For others, procuring a loan may be the holy grail they need. What happens when the answer received from a loved one is heart-wrenching? Then you have an engagement ring with a loan and presumably, an accruing interest, and a broken heart. But don’t worry about missing Linda or Betty, there will always be a Becky or an April. At this point, your primary concern should be the ring – no hard feelings.

Sorry Lender – Things Didn’t Work Out as Planned

She’s gone, but your lender is as present as the day and night. You can always strike a deal. Find out if your lender charges a prepayment fee. Kindly bear in mind that you may have to pay back accrued interest even if the loan comes with a quick payment option. If you’re lucky, you could come across a lender that provides you with a way out of the agreement before payment. But this is not going to be an easy search.

Knowing the Pros and Cons

No doubt, ring financing comes with its advantages and disadvantages.


Ring financing gives you access to any engagement or wedding ring of choice, even with a low budget. You can purchase a high-end jewel and pay the amount at a later time. The loan application is a simple process. You don’t have to spend four days or money sourcing funds for the perfect engagement ring. If you have the financial capacity to pay a 0% interest loan within a 12-month window, then deferred financing might be the right option.


Ring financing is not debt-free. You have to be committed to paying off the loan as failure to do so may hamper or ruin your credit. High-interest financing options tend to be more expensive than the actual price of the ring. Excellent credit score comes with low-interest rate, and vice-versa.

Should You Get a Credit Card?

It is worth noting that procuring a credit card will take a toll on your credit score. This challenge is prevalent where the line of credit is smaller than the amount intended for purchase. You need to identify your debt usage ratio to know the limits, which should be below 20% to 25% of the available credit.

Failure to pay 0% interest credit under the stipulated timeframe will lead to additional high-interest rates. Your best bet is to save up for your engagement ring. You can dedicate three to six months to achieve this goal.

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