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Gone are the days of exchanging simple wedding bands. The average engagement ring costs about $5,900 according to The Knot -- but most Americans don't have a spare $5,900 to pull out of their pockets.
You don't have to spend that much, and overstretching yourself financially is not a good first step on the road to marital bliss. But if you are yearning to get down on one knee with an impressive diamond ring, financing an engagement ring may be the way forward.
Fortunately, you have choices when it comes to financing an engagement ring. Here are some of them.
Personal loans are offered in a wide range of amounts. With a personal loan, you know exactly what your monthly payments will be, and you know exactly when the loan will be paid off. Plus, they often carry lower interest rates than credit cards. Personal loans are available from banks, credit unions, and online lenders.
If you have an excellent credit score, you can confidently apply for the best personal loans.
If your credit score isn't perfect, it's worth taking a few months to improve your credit score. Borrowers with high credit scores can get approved for low interest rates -- and a low interest rate can save you thousands of dollars. If you just can't wait, though, you can always apply for personal loans for bad credit. Just make sure you can afford the monthly payment before you commit, or you'll risk dragging your score down even more.
You can use the calculator below to get an idea of the monthly payments on a personal loan.
Most jewelry stores offer engagement ring financing in the hope that you will shop with them for the big day. Many offer special promotions, like deferred payments or 0% interest for a set number of months. Look at the financing terms carefully and make sure you understand any hidden costs or penalties for missed payments. If you're getting 0% interest, for example, you want to be confident that you can pay off the debt during the 0% promotional period -- and know what the APR will be if you can't.
Charging an engagement ring on a credit card with a 0% promotional APR can be a smart move. These rates are typically available for 12 months or more. Your ring purchase should earn reward points and, if the card has a sign-up bonus, it may also help you get those bonus points. Calculate how much you'll need to pay off each month so you can pay the card off before the promotional rate ends and make sure it fits in your budget. Just like the promotional rates sometimes offered by jewelry stores, you don't want to be stuck with a sky-high interest rate.
Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.
Lender | APR Range | Loan Amount | Min. Credit Score | Next Steps |
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Apply Now for Discover Personal Loan
Powered by Credible
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
|
7.99% - 24.99%
|
$2,500 - $40,000
|
660
|
Apply Now for Discover Personal Loan
Powered by Credible |
![]()
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
|
7.80% - 35.99%
|
$1,000 - $50,000
|
None
|
|
![]()
Apply Now for Best Egg
Powered by Credible
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
|
8.99% - 35.99%
|
$2,000 - $50,000
|
550
|
Apply Now for Best Egg
Powered by Credible |
Financing an engagement ring is serious business. It means taking on new debt and squeezing new payments into your monthly budget. You can feel confident financing an engagement ring if your budget shows that you earn more than enough to make the monthly payments. Financing makes sense only after you have an emergency fund in place and a plan for paying your bills if your financial situation goes sideways.
Here are some questions you should ask yourself before agreeing to engagement ring financing:
Is my credit score high enough to qualify for engagement ring financing? Whether you are applying for in-store financing, a 0% intro APR credit card, or a personal loan, a good credit score helps your odds of approval. If your credit score is not high enough to qualify, you'll need to find a cosigner, put up collateral, or choose an alternative way to finance your purchase. It's always a good idea to work to improve your credit score before you apply for financing.
If you're using jewelry store financing or a credit card: What happens if I don't pay the ring off during the promotional period? Say you purchase a ring at 0% interest for 18 months. You'll need to make a minimum monthly payment to pay it off before the promotional period ends and your interest rate goes up. But what if you're hit with an unexpected expense -- you'll find many of those with a wedding -- and can't make your monthly payments? That means that at the end of 18 months, you'll still owe money. Now, let's say the interest rate jumps to 21% (which is not uncommon). You could end up paying hundreds (or thousands) in extra interest charges, depending on how much you spent on the ring. If you're opting for 0% financing, make sure you can pay off the entire balance by the end of the promotional period.
Engagement ring financing should be the last thing on your mind if you find yourself short on money by the end of each month. And if you have bad credit, you might struggle to qualify for a low interest rate.
Consider waiting a little longer to buy the ring. That way you can save some money and improve your financial situation. You might also decide you can reduce your engagement ring budget, whether by buying a more affordable ring or finding discounts in stores or online. There's no point in spending more than you can afford if it makes it more difficult to finance your wedding and the rest of your life together.
And it should go without saying, but if the relationship with your intended is at all shaky, financing an engagement ring to "fix" the problem is the wrong move.
Only you can decide on the best financing option for your circumstances. Maybe, for you, that means saving up cash for a ring. Or maybe it means taking out a loan, or using a credit card to pay for your engagement ring.
Before you decide to proceed with financing an engagement ring, ask yourself these four questions:
Getting married is like hang gliding off Mount Everest. It's exciting, terrifying, and it takes a lot of planning to get things right. If you decide that engagement ring financing is a good idea, take your time to find the right financing opportunity. Just like it's important to find the perfect engagement ring, it's important to pick jewelry financing that works for you.
Here are some other questions we've answered:
Yes, there's little doubt that you'll be able to land a loan. The issue is how much that loan will ultimately cost you. If your credit score is low, you can count on paying far more due to a higher interest rate.
Not at all. You can easily find a beautiful ring for less than $1,000. Remember, it's your partner who will wear the ring and catering to their taste is much more important than impressing outsiders.
You have a multitude of options. You can save up, take on a side hustle for a few months to fund the ring, or sell items you no longer need or want with proceeds going toward the ring.
Looking for a personal loan but don’t know where to start? Our favorites offer quick approval and rock-bottom interest rates. Check out our list to find the best loan for you.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Please note that this calculator is not personalized financial advice and should not be considered or used as such. Nor are we promising that by use of this calculator, will you be able to save more money, preserve wealth, or otherwise.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Please note that this calculator is not personalized financial advice and should not be considered or used as such. Nor are we promising that by use of this calculator, will you be able to save more money, preserve wealth, or otherwise.
*Upstart Loan Disclaimer
The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.