The A – Z of How Engagement Ring Financing Works

Perchance, you have found the love of your life and intend to take your relationship to the next level. How do you ask her to be yours forever? One way to do this is by getting engaged to her, of which you need an engagement ring. Of course, it is your first serious relationship, and you don’t know the ropes. So, how do you go about selecting the right engagement ring? What setting, carat weight, and cut of a diamond will you choose? If these terms are strange to you, this guide is your go-to material for everything you need to know about engagement rings.

Welcome to the World of Engagement Ring Financing

If you have a jewel retail store close by to where you live, then this is a perfect opportunity to learn thoroughly about jewels, especially engagement rings. By the way, you will be parting with some of your money to get one of these rings for your girlfriend, so you have to invest your mind into knowing what it is all about. You will not regret making such a choice.

I bet you have heard about engagement ring financing, but do know that you can do that without paying interest? Yes, you can. I will show you how. Most jewel stores offer promotional jewel financing or a zero percent APR credit. You can take advantage of this opportunity and repay the ring’s cost within this promotional timeframe. It is worth noting that financing an engagement ring’s price with a personal loan will take a toll on your finance to an extent, as you have to cover the accrued interest.

What Do I Do if This Offer is Not Available?

You may not have the opportunity to take advantage of 0% financing. In that case, you can opt for a personal loan. This option is better than financing your engagement ring with a credit card, which has a double-digit regular APR. Besides, it works best for individuals with poor financial history and low credit score, which disallow them from accessing a 0% financing deal or 0% APR credit card.

“Why should I purchase an engagement ring from a jewellery store?” you may ask. This option allows you to check out various rings and settings before buying the ideal fit. And you may be lucky to be there at the time of sale promotion.

Ensure to do your research before heading to the jewellery store. You can process a loan and use the funds to finance your engagement ring. However, the process complexity depends on your retailer of choice. As soon as your loan is processed, you can purchase your ring by cash, card or cheque. The lender spreads the repayment in monthly instalments, ranging from one year to seven years.

How Much Should I Spend on an Engagement Ring?

You may be wondering about the ideal amount to spend on an engagement ring. Most people hold the opinion that an engagement ring should worth the three month’s salary of an individual. However, this is not a standard rule and not necessarily one you should follow. Here is a shocker; according to a 2019 report from The Upshot by Morning Consult, the average American purchases an engagement ring worth two weeks’ pay. Most engagement rings have prices between $500 and $3,000, with the average being $1,900.

Remember, it doesn’t end at the engagement rings. You may also have to purchase wedding bands, especially if both you and your partner decide to have a wedding shortly after. So, spend on an engagement ring what you can afford.

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