Engagement Ring Loan – Is It Worth It?

Finally, the time is here. You are about to pop the question. Your family members and friends are excited about your plans. But hush… it’s a surprise; your lover has no idea what’s going on. But it’s also a surprise as well; you don’t have an engagement ring. Oops, you didn’t see that part coming. Oh yes, you remember your friends discussing the other day the option of purchasing a ring on loan. Sounds like an ideal plan. But how do you proceed?

Processing the loan is straightforward. Once approved, you can determine the payment mode – card, cash or cheque. Kindly note that this finance option comes with monthly payment. But you also get to choose whatever engagement ring you want. Another thing worth noting is that there is no mark on your credit card for this engagement ring finance option. Depending on the future application of your credit report, this may be a good sign – or not. Such loans often come with low-interest rates.

Of course, there is always a day to finance the engagement ring loan. Your action during this period will determine how future lenders will react to future loan applications. If that doesn’t sit right with you, obtaining a personal loan might be an ideal alternative. Several lenders are willing to support you financially. Loans provided by online, bank, and credit union lenders are not fixed.

However, here is where your credit score comes into play as these entities use it to determine your rate. Another factor they consider is your financial performance. Are you crushing the numbers or barely wading in the water?

You may not like the idea of procuring a loan. How about a credit card? Sounds appealing? Here is what you should know about this financial option. It comes with low or no interest periods. As such, you can pay off your debt quickly. Kindly note that getting a credit card comes with a mark on your credit report.

With a significant line of credit at your fingertips, the credit card company charges you a little. Of course, you have a debt usage ratio in place. But not many people understand the financial workings of this parameter. But for clarity, you should compare your balance to the outstanding credit. To prevent your credit score from sinking, avoid recording 20% to 25% of the value present on the credit card.

But here is the ultimate deal. After all, said and done, those ideas don’t sound good to you. Remember, you can go the old-fashioned way – save up for the engagement or wedding ring. This option will save you the trouble of payment in the future.

It is not uncommon to find jewellers providing shoppers with their financial plans. Some of them come with 0% interesting financing, while others are little. Such promotional offers are great but can be financially catastrophic, especially when you fail to honour the terms and conditions. Whichever option seems ideal to you, ensure that you purchase a ring that is within your reach.