A Comprehensive Guide on Repaying an Engagement Ring Loan

You have found the perfect person you wish to make your life companion and you can’t wait to tie the knot. The first step to take is to propose. The wedding bells will come chiming at a later point. At the moment, you need an engagement ring. But is the financial resource available to get one? Do you need to empty your savings or save up a little? Perhaps, you are at a crossroads now. If you have enough cash lying around, this may be the time to make your lover feel special. Besides, this is a once in a lifetime event, provided that there’s a happy ever after.

But if the funds are unavailable at the moment, then taking a loan may be your best bet. This guide contains essential factors you should know about financing your engagement ring with a loan. So, kindly fasten your seat belt as the journey begins.

The first financing option to address is deferred financing. Do you intend to make other purchases (apart from your engagement ring) that rack up the cost so high that it exceeds the max for a credit card but is unable to qualify for a loan? Then you’ve come to the right place. Deferred financing caters to such budgets. It features a 0% interest rate and 12-month payment window. But here is the elephant in the room. Failure to pay within the stipulated time-frame will create an additional payment; this time, encapsulating the interest rate.

Peer-to-peer lending is another way for shoppers to finance their rings. Several online platforms provide this service. You can get in touch with potential investors by simply filling out an application. This form contains your personal information. The investor reviews the application. If you qualify, you’ll get the money at a specific interest rate. The downside to this option is the often high-interest rates that come with financing.

Some individuals don’t find the first two options appealing. There is always another card in the deck. You can opt for a personal loan, which may span three to five years. Generally, interest rates are above 10%. But you may come across an interest-free option, depending on the credit score. For individuals with poor credit, obtaining a personal loan is bad for business.

If none of these options meets your requirements, you can always apply for a credit card. Many credit card companies provide eye-catching bonuses when you apply for one. This option also comes with low-interest rates, especially for newly signed-up members who meet some financial requirements. Meeting this standard shouldn’t be challenging being that it’s a fraction of the actual cost of an engagement ring.

Speaking of engagement rings, you can purchase one with a minimum amount of $2,000. In truth, some options are within hundreds of dollars. But you should ensure that you get the best deal from your jeweller before committing to the jewellery financially. If you have the resources, don’t hesitate to get a befitting ring for your significant other.