An engagement ring is a symbol of love, dedication, and commitment, and it is one of the monumental purchases in most people’s lifetime. While it’s highly recommended to pay in cash, sometimes it’s not an option when you are in a less-than-ideal financial situation.
Don’t allow a lack of cash or bad credit score prevent you from proposing to your partner. Gone are the days when a buyer was expected to spend two to three months’ salary on an engagement ring. Today, there are plenty of engagement ring financing options if you are in the market for a ring.
Here are some of those engagement ring financing options that can help you buy that ring.
These days only a few people have enough cash to purchase an engagement ring. So if you do not want to borrow, you can save up. While it’s always the best move to avoid debts, this option has its fair share of challenges.
First of all, you cannot start to save for a ring if you still haven’t found “the one” instead of putting money aside for tangible reasons such as retirement.
So when it comes to saving for an engagement ring, consider what best fits you and your finances as well.
Secured Credit Card
You can use a secured credit card if you have bad credit to buy an engagement ring as well as build or rebuild your credit. A secured card requires an initial security deposit, usually $200 or the same amount as your credit line. In case you are unable to foot the bill, the card issuer holds the deposit as security.
Using a secured credit card is invaluable since your issuer reports to major credit bureaus. So if you keep your balances low and always pay your bills on time, you can strengthen your credit.
Use a Jewelry Store Credit Card
One of the best ways to fund your engagement ring purchase without depleting your savings is using jewelry financing, usually in the form of a jewelry store credit card that has 0% introductory APR. What’s more? It has no interest or loan fees. That means you don’t have to pay cash at once. Instead, you charge the engagement ring to your credit card and take your time without paying any interest until the introductory period ends.
Another great thing about this option is that it’s flexible. For example, if you have extra cash, or you decide to just finish the payment at once, you can pay the balance at any time.
Lease to Own Programs
A bad credit score means limited financing options. Luckily, you can still get that engagement ring using a lease to own financing option. Flexible lease-purchase programs allow you to finance the engagement ring with no upfront payments or credit checks. The best thing is that you can finance it through cash installments, allowing you to maintain your cash reserves.
No matter which engagement ring financing option you decide to choose, use it responsibly. This means paying debts on time and as per your agreement since it can help rebuild your credit. Ensure that you only finance what you can afford to repay, and remember to carefully read the fine print of the financing offer before you sign.