4 Ways to Pay for an Engagement Ring

Shopping for engagement rings can be exciting and sometimes a bit stressful. You’re looking forward to getting down on one knee but may have reservations about how much the perfect ring will cost.

The good news is you have plenty of ways to pay for an engagement ring, including saving up in advance, engagement ring financing, credit cards, and personal loans. This article explores each of these in more detail so you understand all available options for getting your partner their dream ring.

1. Save Up Cash

Saving up to pay for a ring in cash could take several months, but it’s a great option if you’re not on a tight timeline to propose and would prefer to avoid going into debt.

To figure out how much you need to save, note the price of the ring you want and how far out you plan to propose. Then, you’ll work backward to calculate your monthly savings goal. For example, if you plan on proposing in six months and want a $1,500 ring, you’ll need to save $250 a month if you don’t have any money set aside yet.

To reach your goal even faster, consider keeping your savings in a high-yield savings account. These accounts can help you earn more interest and keep up with inflation.

2. Explore Financing

Many jewelers offer in-store financing for engagement rings, letting you get the ring now and repay the jeweler over a specific timeframe, usually six to 24 months. Jewelers usually partner with loan or credit card companies to offer these programs, meaning you’ll open an account with the lender directly and make payments to them. 

In many cases, these in-store programs offer low- or no-interest financing for the repayment period. If you choose this option, you must pay the balance in full by the time the period is up. If you carry a balance past the promotional period, the lender may retroactively charge interest from the entire period and add it to your balance due.

3. Use a Credit Card

Credit cards offer several benefits that may prove beneficial as you shop for a ring, including:

• Signup bonuses: The bonus is generally a lump sum or statement credit for spending a specified amount within a certain period after opening the card. If you plan to drop a few thousand dollars on a ring, you might qualify for the bonus from that purchase alone.
• Cashback: You might earn cashback rewards on your purchase, which you can use to cover a small portion of the ring’s cost.
• 0% APR credit cards: You may be able to qualify for a 0% intro (annual percentage rate) APR, where you pay 0% interest on purchases, usually around 12 to 21 months. This lets you spread the ring purchase out over several months and pay it back before the promotional window ends. Just remember that you’ll begin to pay interest on the remaining balance after the promotional period has ended.

Here’s a look at how paying with a credit card may help you save. Imagine you buy a $3,000 engagement ring with a new credit card. The card gives you a $150 statement credit for spending $3,000 within three months of opening and pays 1.5% cashback on all purchases.

That’s a savings of $195 on your engagement ring purchase through signup bonuses ($150) and cashback ($45), leaving you with $2,805 to pay instead of the full $3,000.

Now, picture that this card also offers 12 months of 0% interest on purchases. That means you’ll only need to pay $233.75 per month to pay the balance off by the end of the promotional period.

If you still have a balance near the end of the promotional period, you could explore transferring the balance to a balance transfer credit card to get more time. For example, a balance transfer credit card may give you 12 more months to pay the balance. Just be aware of the balance transfer fee, which may be 3 to 5% of the transferred balance. 

4. Get a Personal Loan

Personal loans allow you to borrow a lump sum of money to use for various expenses, including to finance an engagement ring. You’ll typically repay the loan in fixed monthly payments plus interest. Personal loans are available at banks, credit unions, and online lenders. This means you have plenty of options, making it easy to shop for the best rates and loan terms.

Get an Engagement Ring You’ll Both Love

Engagement rings can be pricey, but you have plenty of ways to fit the ring of your partner’s dreams into your budget. Saving cash could help you avoid debt, but it takes a while. That’s why you may turn to ring financing, credit cards, and personal loans. Some couples find that combining savings with financing helps them get a ring they’ll both love while balancing financial concerns.

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