In the Name of Love: How to Finance an Engagement Ring

When you’re looking for the perfect ring for the love of your life, the price tags may seem overwhelming. But with the many financing options available to customers, you can land the perfect ring to express your love without breaking the bank.

Here are some options for financing engagement rings:

Cash savings. If you have a savings net to dip into, try paying as much as you can for the diamond up front. This will lower your monthly payments and interest rates and shorten the amount of time you’ll be paying for the bauble. Then you can enjoy newlywed bliss without the stress of large ring payments looming over your head.

Credit cards. Turn to your plastic for paying for your ring. If you have good credit, you may be able to swing the whole ring on one or two credit cards. The advantage of using existing cards is you already know – or can find out – your interest rates and terms and can make monthly payments on your card to pay for your gem.

In-store financing. Jewelers have a wide range of payment plans, options and interest fees, depending on where you go and how many karats you choose for your loved one. Many offer private-label credit cards just for buyers like you. Be sure to ask about any deals or incentives packages they offer, such as 0 percent financing for the first three months. Take advantage of these specials by paying off as much of the ring as you can in the first few months after you purchase the treasure.

Online jewelers also offer special pricing deals, for the less than 5 percent of diamond buyers who buy their baubles online. Sites such as Blue Nile offer a Bank of America credit line of up to $25,000, whereas Ice.com allows customers to pay in monthly installments by charging your credit card monthly.

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