When shopping for an engagement ring, you would want to ensure that you get the best deal. Your soon-to-be spouse should not be worried about her ring fading away, wearing out, or losing its brilliance after a while. Several jewel options are available to anyone, including diamonds. Some are expensive, while others fall in the mid and low-price range, depending on the buyer’s budget.
If you intend to get a diamond engagement ring for your spouse, I would advise that you pay in cash. It saves you several headaches and prevents you from being indebted to a lender. However, you may not have the finances to purchase one of these jewellery pieces. The next alternative is financing.
According to The Knot, a wedding website, an engagement ring’s average cost is $5,978. Most women set the average price at $2,731, while men peg it at $1,991. If you have $2,000 to $3,000 in cash to purchase an engagement ring, you are all set; otherwise, you may have to consider financing the jewellery piece with a loan. This option allows you to purchase a ring that is above your financial capacity.
You can obtain a private loan from a financial institution or your jeweller. These personal loans are short-term, lasting three to five years. However, you have to be mindful of the interest rate. Often, they are classified as engagement ring payment loans. Before accessing the loan option, your lender will evaluate your financial reports and credit score to determine your creditworthiness, interest rates, and loan approval.
How About Online Jewellery Retail Stores?
You may shop from a brick and mortar jewellery store as it gives you physical access to the gemstone’s cut, clarity, carat weight, and setting. However, this does not make online stores inferior. In actuality, shopping for engagement or wedding rings online comes with several benefits, including comfort. You can browse through a catalogue of gemstones and ring bands from the comfort of your home.
In our present-day world, shoppers spend more time online than in on-site stores. It is easy to check out various jewel options from many jewellery stores online without moving from one location to another. According to Research and Markets, the online sales of jewellery should gain an additional 10% market share before the end of 2020.
It is worth noting that both online and on-site jewellery retailers provide customers with dedicated private-label credit cards. The terms that come with this option are on par with those of the major credit cards.
What About Deferred Financing?
Perchance, you have come across the term “deferred financing” but don’t know what it is. I would state that this is a unique financing means. Most stores provide this option to customers when they purchase items worth thousands of dollars. It is worth noting that the amount is too low for a larger loan but higher than what you would need for a credit card.
So, what is deferred financing? This type of financing allows a buyer to get 0% interest lasting several months, which will accrue when the loan term expires. What it means is that there will be no interest when you pay the entire loan before the deadline. But if you don’t, the accrued interest will reflect on your loan balance, which you would have to pay as well.