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What Options to Consider When Financing Your Jewelry

What Options to Consider When Financing Your Jewelry

Expensive jewelry, such as an engagement ring, is an investment, but there are jewelry financing options to consider so that you can mark a special occasion without the cost of a purchase being too burdensome. But your decision can depend on your budget, credit, and other factors. There are several ways to finance jewelry; we’ll discuss a few to help you consider your best option.

Can I Finance an Engagement Ring?

According to The Knot, the average cost of an engagement ring is $6,000. However, you can still purchase a great ring even without that much saved up. These are some common options for financing an engagement ring and how to determine if they’re the best for you:

  • Credit Card: Charging a ring is a fast way to buy it. The best time to consider using a credit card is if you have a new one with a 0% introductory interest rate. Also, consider the card’s borrowing limit. If your balance exceeds 30% of the limit, your credit score can drop. But if the purchase falls below that and you can pay it off during the promotional period, using credit is convenient.
  • Personal Loan: Many lenders offer personal loans and are often flexible in how much you can borrow (especially if you have good credit). Repayment terms vary depending on the lender. If you qualify for a low rate, that’s great if you need a year or two to pay off the ring. Interest rates on personal loans are usually lower than with credit cards, so a loan can be a more affordable option to consider.
  • Jewelry Store Financing: Just like a car dealership can offer auto financing, a jewelry store can offer in-house financing. It’s a good option if they offer a 0% promotional rate. But you must review your finances to determine if you can repay the loan within the specified period, or else interest, perhaps up to 29% or more, can be added to the balance, making the loan very expensive. Obtaining the loan is part of the shopping process, so you can apply and be approved at the jewelry store.

Can You Put a Down Payment on an Engagement Ring?

A down payment is a middle ground between paying for the ring upfront and paying it off. It also reduces the loan’s total cost. If you can afford a chunk of the purchase, you can offer the jeweler a down payment and finance the remainder. This can mean lower monthly payments and less risk of exceeding the promotional period and having to pay full interest.

What Are Some Other Considerations with Jewelry Financing Options?

Financing for jewelry, just like any other purchase, can be tricky. Aside from high interest rates and whether you put money down on the purchase, you should also consider:

  • Fees: Loans and financing options often come with origination and other fees that add to the cost of borrowing. Depending on the lender, they can equal a significant percentage of the loan principal.
  • Monthly Payments: The total cost of the ring is divided into monthly payments. Before you accept financing, determine if there’s room in your budget for another monthly expense.
  • Loan Term: A longer loan term can lower monthly payments, but additional interest increases the total cost. A shorter term can reduce or eliminate interest, but you’ll pay more upfront.
  • Is the Loan Secured/Unsecured?: An unsecured loan is often more expensive. You may save with a secured loan, but it can put an asset, such as your home, at risk if you default on payments.

Is It Wise to Finance Jewelry?

Financing for jewelry provides more flexibility in how much you can spend. It allows you to spread the cost out over time instead of paying it all upfront. The more you earn and the larger your budget, the more financing options you may have. If you find one that’s affordable, you can find a stylish, meaningful ring or other piece of jewelry you or your partner will love.

What Jewelry Financing Options Does Jeweler’s Touch Offer?

At Jeweler’s Touch, we provide competitive financing to work with your budget. These include 0% interest for 12 months or 9.99% interest for 36 months of equal payments. We also accept credit cards, but a 90-day free layaway plan is available as well. If you’re interested in financing your jewelry purchase with us, call (714) 579-1616 today.


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