How to finance an engagement ring


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  • An engagement ring can be an expensive purchase, but financing the ring can help you pay it off over time instead of paying the full price outright at the time of purchase.
  • There are many low-interest options, including 0% APR credit cards, some of which offer 18 months of no interest payments; financing directly through the jeweller; and personal loans.
  • Traditional bank loans will often incur high interest rates, but are still an option for those who choose to do so.

Purchasing an engagement ring is a major financial decision.

There are several ways to pay for the jewellery piece, many of which don’t require you to lay out the money in full when you buy the ring itself. A great way to walk away with the jewellery you’re seeking, and to give yourself financial freedom at the same time, is to finance it.

There are a number of ways to do this.

Finance through the jeweller

Peter Meksian, the CEO of jewellery company Michael M, called engagement rings “one of the most important purchases in people’s lives.”

Meksian recommends financing engagement rings if it’s within your budget.

“Engagement rings can be financed just as we finance our homes, education, cars, and other things of value. Most jewellery stores have in-store financing for engagement rings. Filling out a basic application with your financials will get you an answer on what your purchase budget can be. You can pay monthly or pay it off earlier, just as any other loan,” Meksian said.

Some major fine jewellery brands offer financing options.

Blue Nile, an online jewellery destination, offers a credit card for consumers. Depending on the price of the ring, consumers enjoy 0% APR for the first six, 12 or 18 months after purchasing. If you choose a longer payment plan, with equal payments, there is a 9.99% APR.

James Allen, another popular wedding jewellery company, offers special financing with six months of interest-free payments and a 9.90% APR for 24 monthly payments, which is still lower than many credit cards and personal loan financing options.

Luxury retailer Tiffany & Co. offers a 0% APR for 12 months and 7.99% APR for 24 months through their credit card.

0% APR credit cards

There are several credit cards that offer 0% APR for up to 18 months. This is a great option for those with good credit who want the flexibility of paying off the cost over time.

After the promotional period, the interest rate will be high, so it’s in your benefit to pay off in full before that time. Several options, such as the American Express Cash Magnet® Card and the Chase Freedom Card, offer 15 months of 0% APR on purchases.

After the promotional period, the American Express Cash Magnet Card offers a variable APR rate of 15.24% to 26.24%, and the Chase Freedom offers a variable APR of 17.24 to 25.99%. The Wells Fargo Platinum Visa® Card offers 18 months, then a variable APR 0f 17.74% to 27.24%.

Learn more about the American Express Cash Magnet Card from Business Insider’s partner, The Points Guy »

Learn more about the Chase Freedom card from Business Insider’s partner, The Points Guy »

Personal loans

Personal loans have come a long way, but they still require consumers to pay a larger interest rate on purchases.

The personal finance company SoFi offers some of the most competitive loan rates out there. The company allows you to determine your rate without checking your credit score in as little as two minutes.

The rates range from 5.90% APR to 16.99% for personal loans of $US5,000 to $US100,000, and there are no fees – even late fees. This is an option for those who can’t or don’t want to open another credit card, or need longer than the 15 or 18 months of 0% APR to pay it off.

The rates here are lower than traditional bank loans. For example, Citibank offers loans ranging from $US2,000 to $US50,000 at rates of 7.99% to 17.99% APR.

Considering a personal loan? Take a look at these offers from our partners:

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