Should I Get Financing for My Engagement Ring?

If you’re getting ready to propose to your significant other, you may be wondering how you’ll pay for an engagement ring. Since it can be very expensive to cover the cost in full, financing may be a good option. Let’s take a closer look at engagement ring financing so you can determine if this option makes sense for you.

Is Financing an Engagement Ring the Right Choice for Me?

An engagement ring will likely cost you thousands of dollars, so if you don’t have the cash to pay for an engagement ring upfront, financing may be your best bet. This is particularly true if you’re able to find a good financing option.

Engagement Ring Financing Options

Here are some engagement ring financing options you may want to consider.

Personal Loan

With a personal loan, you’ll receive a lump sum of money that you can pay back via fixed monthly payments over an agreed upon term. There are many lenders that offer personal loans and don’t require collateral, meaning you can take out a loan without putting an asset like your house or car on the line.

Credit Card

You could finance an engagement ring with a credit card, as long as your limit is high enough to accommodate your large purchase. If you’d like to buy a ring for $7,000, for example, but your credit limit is $2,000, this may not be an option. Factors like your credit score and income will help determine your limit. Keep in mind the high interest that comes along with carrying over credit card debt.

Jewelry Store Financing

Many jewelry stores will lend you money to cover the cost of an engagement ring. Some stores offer 0% financing for a set time period. However, if you miss a payment or don’t pay off the ring before the promotion expires, you’ll be on the hook for sky-high interest charges and fees.

Buy-Now, Pay-Later Loan

If you opt for a buy-now, pay-later loan, you can buy a ring without having to pay for it upfront. You’ll break your payments into installments that you’ll make over time.

For example, you may pay four installments of $1,000 over six weeks for a $4,000 ring.

Comparing Your Engagement Ring Financing Options

Before you decide how to finance an engagement ring, keep the following in mind.

Interest Rates

The higher the interest rate is, the more you’ll pay for your engagement ring. If you’re unable to lock down a competitive rate, your ring may cost you hundreds or even thousands of dollars more than the original price.

Promotional Deals

Some engagement financing options, especially those offered at jewelry stores, come with promotional deals. While 0% interest for 12 months may sound like a good idea, this can actually hurt you if you’re unable to pay off your ring before the 12-month period is up. After 12 months, you may be stuck with a very high interest rate.


In addition to interest rates, many ring financing solutions charge fees. These may include origination fees, late fees, and prepayment fees. Even if you’re able to secure a low interest rate, these fees may make the overall cost of your ring extremely expensive.

Your Credit Score

If you have bad credit, you might have trouble getting approved for loans, credit cards, and other financing solutions. You may want to focus on improving your credit before you finance an engagement ring. Some ways you can improve on and maintain a good credit score is by paying your bills on time and keeping your credit card balances low.

Your Financial Situation

Think about how you’re doing financially. If you have a stable job or a steady income, financing your engagement ring can be a smart choice. On the other hand, if you’re struggling with your finances and don’t feel confident you’ll be able to repay your ring, you may want to put the purchase on hold.

Advance America Can Help You Finance Your Engagement Ring

Advance America is pleased to offer a variety of personal loans that can help you finance your engagement ring. With our emergency loans such as installment loans and lines of credit, you may get the funds you need quickly, even if you don’t have the best credit. You can apply in store or online from the comfort of your own and get an instant approval decision.

The Advance America advantage

Since 1997, Advance America has helped millions of hardworking people with a variety of financial solutions including Payday Loans, Online Loans, Installment Loans, Title Loans and Personal Lines of Credit.
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