alvaro gonzalez/ Getty Photographs; Illustration by Austin Courregé/Bankrate
Key takeaways
- In-house financing, bank cards, private loans and point-of-sale financing are frequent methods to fund engagement rings.
- Options just like the setting, materials and stone affect the price of the ring.
- The common engagement ring prices lower than $6,000 — however it may be dearer for those who select extra luxurious choices.
There are a handful of the way to finance your engagement ring buy to make it extra manageable, similar to making use of for a cost plan with a jeweler or taking out a private mortgage. On any given day, a superb high quality ring can set you again a number of thousand {dollars} — and shopping for an engagement ring in 2024 could also be more difficult than ordinary.
A Bankrate survey confirmed that whereas inflation is down, many economists don’t imagine it’s going to hit the Fed’s goal till 2025. That mentioned, having a funds that intently aligns along with your state of affairs is vital when ring procuring.
Financing engagement rings statistics
- The common quantity Individuals spent on an engagement ring in 2023 was $5,500, based on The Knot.
- The most well-liked value vary for wedding ceremony bands runs from $700 to $1,200, based on info from Brides.
- Individuals spent about $7,820 for his or her entire engagement in 2020. This contains the ring, photographer and each engagement and bridal events.
- Diamonds are nonetheless the most well-liked stone relating to engagement rings, accounting for 85% of all rings bought in 2023.
- Lab-grown diamonds are a well-liked development — largely as a result of they’ll value 50 to 70 % lower than pure diamonds.
- The common measurement of an engagement ring is one carat.
- Yellow gold engagement rings are rising in reputation, with a 26% enhance since 2015 — however white gold nonetheless stays the most well-liked in 2023.
Budgeting for engagement rings
You might need heard the outdated rule of thumb that an engagement ring ought to be price roughly three months of wage. Diamond jeweler De Beers popularized the thought of tying a hoop’s value to your month-to-month earnings in its Nineteen Thirties advertising marketing campaign. An engagement ring doesn’t have so as to add as much as that a lot cash, however it’s best to nonetheless be ready to spend no less than a grand on the acquisition.
The Knot’s 2023 Jewellery & Engagement Examine discovered that the common engagement ring value that buyers paid was $5,500 — down from $6,000 in 2021. Ring setting, metallic kind and diamond or gemstone particulars — like ranking and measurement — will all impression the value of your engagement ring.
Due to the excessive value, there are a number of choices you’ll be able to discover if you should finance the acquisition of your ring.
Jewellery retailer financing
Many main jewellery retailers provide in-house financing to assist their clients pay for an engagement ring. These take the type of an installment mortgage — you make incremental month-to-month funds towards the mortgage steadiness, plus curiosity.
Usually, jewellery financing affords extra versatile credit score necessities in comparison with borrowing a mortgage from a standard financial institution. Phrases will fluctuate by retailer, as will financing necessities, like a minimal buy quantity.
Jewellery retailer financing is greatest for comfort
If you need a handy financing supply and don’t have robust credit score, chances are you’ll wish to take a look at in-store financing.
Bank card
Utilizing a bank card to finance an engagement ring could be a strategic possibility for accountable debtors.
For instance, let’s say you’ve gotten robust credit score and qualify for a promotional 18-month 0 % APR rewards bank card. If you happen to can repay your card earlier than the promo interval ends, it can lead to paying no curiosity whereas additionally incomes rewards factors or miles.
In case your credit score doesn’t qualify for a promotional price provide, remember that bank card curiosity could be steep. When utilizing a bank card and not using a no-interest promotion, calculate whether or not you’ve gotten the funds to repay the ring inside the subsequent billing cycle.
Bank card financing is greatest for strategic patrons
People who’ve robust credit score and may qualify for a low- or no-interest interval or can repay the ring buy by the following billing assertion could possibly get a superb cope with a bank card.
Private mortgage
Like jeweler financing, a private mortgage is a sort of installment mortgage. Nonetheless, not like jeweler financing, because the lender is a 3rd celebration, you need to get accepted for the mortgage earlier than procuring on your preferrred ring.
Eligibility for an unsecured private mortgage varies between lenders, which incorporates credit score necessities for approval. The benefit is evaluating charges from a number of lenders to search out the bottom possibility — even in case you have less-than-perfect credit score. That mentioned, for those who’d wish to safe the most effective provide, be sure to spice up your credit score rating by decreasing high-interest debt, amongst different issues, earlier than you apply.
Private loans are greatest for price procuring
Patrons who’ve good credit score and wish to store round for a aggressive rate of interest could wish to make the most of a private mortgage to finance their engagement ring.
Purchase now, pay later mortgage
Purchase now, pay later (BNPL) loans, additionally referred to as “point-of-sale financing,” have gained reputation lately. BNPL companies, like Affirm, Klarna and Afterpay are sometimes built-in into the checkout course of when shopping for an engagement ring on-line.
Usually, you pay a share of the overall value upfront. You then make equal funds over a brief interval to repay the remaining steadiness. Relying on the reimbursement time period you select or your credit score, you is perhaps supplied a BNPL mortgage at no curiosity.
BNPL loans are greatest for web shoppers
If you happen to’re procuring on-line and desire a seamless financing expertise with the potential to pay no curiosity for a brief reimbursement time period, BNPL could also be a good selection.
