Where to Begin with Engagement Ring Financing

You may have the money to shop for an engagement ring, regardless of the cost. But what happens when the price of this jewel is beyond your financial reach? Family and friends may come to the rescue. Taking a loan may seem logical, but the high-interest rates make it a dead-end for many individuals. Your best bet is to borrow from a trusted family member or friend, one who may be more than willing to assist you. Why is this important? You don’t have to deal with lenders’ stringent policies.

To some, borrowing from family and friends to buy an engagement ring may be unappealing. Having your loved ones cater to an engagement ring that will be presented to your spouse sounds spooky. As such, your best bet is to save up for your expenses. You can dedicate three to six months to achieve this task. Avoid the urge to always running to your family and colleagues for financial help, especially when it boils down to purchasing an engagement ring.

Understanding the Clauses

Ring financing comes with its merits and demerits. For some types, interest rates are high, affecting the overall cost. you should consider this factor before contacting a lender, a jeweller or a credit company. Often, credit scores play an essential in the type of interest rate generated. Individuals with excellent credit get lower interest rates than their counterparts.

If getting a loan is your best bet, ensure that is within your means of payment to prevent financial blowbacks.

What Should You Consider in a Loan?

The first area worth considering is your contract. Are there any extras? Do you have outstanding payments? If yes, what are the penalties? Double the loan amount. Kindly note that lenders have their unique amounts, with the maximum amount ranging from $25,000 to $40,000. Also, understand that such figures depend on the credit score.

It is easy to assume that long-term loans are great as you have more flexibility to purchase your engagement ring and still take your time to pay back. However, this is a façade. The bigger picture is the interest rate that comes with such options. Even though you have more time to pay the amount, the accrued interest rate may flush your finances down the drain. Your best bet is to pay off the loan immediately.

As discussed before, if your credit score is poor, you may gain little or no attention. You have to consider these factors before planning your next financial move. You may have family and friends that are willing to support you financially. Don’t hesitate to reach out to them. But bear in mind that they have other needs worth addressing and may not provide the full support required.

Taking the First Step

Perhaps, your credit score is poor, you need to review it before applying for an engagement ring financing loan . But if that doesn’t work out. Spare three months to save enough money for your engagement ring. Have an ideal budget in your head work with that. Decide the amount you wish to set apart each money for your engagement - $200, $400, $700 or $1,000. By doing so, you have a feasible timeframe. Avoid spending more money than needed on an engagement ring; this is prevalent with loans. And remember the rule – If you have it, buy it. If you don’t have it, save up for it.

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