Be Familiar With Different Engagement Ring Financing Methods!
Buying a ring for your engagement is not a tiny investment to consider. It may be one of the vast purchases you will make in your life. Of course, it is a significant purchase for which you may consider financing options. When you have to buy it urgently, and you do not have sufficient funds, this is where the role of Engagement Ring Financing comes in. Undoubtedly, paying cash is always an excellent idea for such big purchases. It will help you save on interest, avoid penalties or late payment fees, and stay within your budget.
But if paying cash is not the right option for you, then the thought of financing it will come to your mind. Don’t worry; there are different options for funding an engagement ring with various merits and demerits. Start exploring multiple financing options when it comes to buying an engagement ring.
Financing At Jewelry Stores
The first and foremost thing people consider is getting a financing option at a reputed jewelry store. Buying an engagement ring at a jewelry store has many benefits to offer. A jewelry store lets you try on different rings to get the perfect fit. Sometimes, you visit a jewelry store when sales are going on and feel lucky. This is how a jewelry store may provide you with the best financing option.
If you are thinking of this option, ensure to do your research work. It is essential to know about things that significantly affect your decision, such as promotional deals, regular interest rates, and hidden fees or charges.
- Jewelry stores are going to offer low promotional interest rate options. These promotional offers can save you money, but make sure you can afford to pay off the engagement ring during that time.
- Make a smart move to read the fine print and be informed of any hidden charges or fees included with different Engagement Ring Financing options at a jewelry store.
- It would also be good for you to examine the regular interest rate after the promotional period ends. Decide whether or not you can afford the payment at the standard APR on the off chance that you don’t pay it back during the promotional offer period.
Some people consider credit cards for financing an engagement ring. But this approach needs some planning. Some things may come to your mind while thinking of this option. You will want to put the ring on a credit card with a very low APR, generally 0%. Moreover, you would also like that low APR to complement the time frame within which you can plan to pay back the amount. With such planning, you can avoid getting slapped with a high APR once the promotional period finishes.
Therefore, you need to be eligible for a low or zero-APR credit card, which requires an excellent credit history. Sometimes, some people do not have excellent credit, which they need to build up. So, this option demands you start planning early to save money in the long run.
Personal loans are the most demanding option people consider. A personal loan can help you buy an engagement ring without breaking the bank. A personal loan is an option to go with when other Engagement Ring Financing options do not work at all. Other methods need you to pay the ring off before the expiration of the promotional period. Sometimes, you may not qualify for other options because of a poor credit score and financial history. At this time, a personal loan comes in handy.
But when you want a personal loan to finance your engagement ring, it is essential to consider some tips. Make sure to shop for this loan option with a reduced interest rate. It is a good sign if you are getting 10% or lower than this. Whatever interest rate you finally find must be lower than the average APR on a credit card (16%). You must know that the intermediate personal loan term is 12 to 16 months. Try to make the period short as much as possible, which will let you save money on interest.
Last but not least, go with a financing option that suits your needs and interests. Professionals at Buchroeders Jewelers offer the best financing option than other options like personal loans or credit cards. Make a wise decision with proper research work to prepare to propose to your partner.