Has she been swooning over engagement rings, pinning to her heart’s content, and #hinthint-ing her way across Instagram? The dreaming part of engagement ring shopping is fun. But too often those dreams are shattered when you venture to find out how much all those halos on the popular page cost. Then it’s time to talk about how to finance an engagement ring.
I’m here to tell you that those dreams can still come true.
But first, everyone’s favorite part, the pleasedonttarandfeathermeonsocialmedia DISCLAIMER!
Don’t buy a ring you can’t afford.
This means something different to every shopper, but do not waltz into your local jeweler and buy a ring with a price tag that will keep you up at night. Just don’t do it! Don’t finance a ridiculously expensive ring just because you can, and don’t take out a second mortgage to bankroll that Tiffany ring she loves. Do not buy a ring you cannot afford.
You might be laughing maniacally to yourself saying “LOLOL I can’t afford any ring, these things are crazy expensive!” But let me let you in on a little secret – most people are financing their rings. Your buddies didn’t pay $30k or $3k in cash for that ring – a lot of them financed it. Why?
- They wanted to take advantage of a promotion that offered a year or more of no interest.
- They wanted to space out the payments rather than plunking down all that cash at once.
- They didn’t want to take up the entire limit on their credit card.
- They decided to propose when they were ready to, not when their bank account was.
Does this mean they threw caution to the wind and bought a D Flawless 10 carat diamond? Probably not. They still kept their maximum comfort point in mind, put down a decent amount, and financed the rest. You can do the same.
How to Finance Engagement Ring Dreams (So They Come True)
When you start shopping, you’ll begin with some light stalking on her Pinterest boards. From there, you can see if she has a favorite engagement ring designer or style. With that in mind you can visit the designer’s site and locate the authorized dealer closest to you. If she’s not particular about the brand, but wants a specific diamond, you can look for that online and use Yelp or Google Maps to find local jewelers for the setting.
Narrow your choices down by visiting the jewelers to compare the rings. I recommend no more than three – you’ll gauge the market prices without veering into TMI territory. Hopefully you’ll find THE ONE at your first stop (and you’ll increase your odds of doing so if you go to Diamonds by Raymond Lee first 😉
After you pick your ring, ask the salesperson helping you what your financing options are:
- Next Week
- Next Month
If you aren’t in a rush, he or she might let you know today they can offer you a year of interest free payments, but next month they’re running a promo for $0 down, 0% interest for five years. You never know until you start looking.
Another great option is to start the search even earlier, and look for highly rated jewelers in your area right from the start. Sign up for their newsletters and follow them on social media while you do your preliminary research. You may stumble upon the perfect ring and an awesome financing promo at exactly the right time!
Once you say “Let’s do this,” you’ll fill out a financing application. The salesperson will run a credit check (it is a hard inquiry if you’re in-store. If you’re just getting an idea online, a financing service like Affirm is a soft inquiry.) If you’re approved – awesome. You’ll walk out of the store and start making payments at the scheduled time. If not, the salesperson may be able to follow up and see if the bank will counter with another number. You might get approved for the ring’s total or part of it.
Once you’re approved, you’ll treat the payments like you would a credit card payment – that’s essentially what the DBRL and RLJ financing offers are, a store credit card. In order to keep your offer, you can never miss a payment. Doing so will spike the interest rate and defeat the purpose of financing the ring. It will also end up making your ring more expensive. So I’ll say it again: Do not buy a ring you cannot afford!
Financing exists as a tool for customers, and it provides another option to the many, many ways to get your dream engagement ring. Whether you’re financing because you can, or financing because you need to, it’s important to shop for the ring with the same mindset you would if you were paying cash. Don’t just kick the can down the road and decide to figure out how you’ll pay for the ring after your year of no interest expires. Like engagement rings on a budget, alternative center stones, and shopping estate, engagement ring financing is another tool in your arsenal to turn a dreamy engagement ring into a reality.