The Dos And Don'ts About Financing An Engagement Ring

Are you thinking about financing an engagement ring? If you want to get engaged quickly, there's no better way to do it — but you may need to educate yourself first on the risks and the benefits. Here's what you need to know about the dos and don'ts of financing an engagement ring. 

Do: Look for Deals and Promotions

You'll find that there are many deals and promotions available throughout the year for financing all types of jewelry. From upscale boutiques to eclectic pawn shops, you can usually find a venue that is offering a promotion at any time. Some of these promotions are exceptionally valuable — in particular, anything that doesn't require a certain amount down or that locks in a 0% interest rate for some time.

Don't: Overlook Personal Loans

Personal loans are sometimes the easiest ways to finance an engagement ring. If you have good credit, a personal loan will be easy to get and will have a very low interest rate. More importantly, it lets you purchase a ring from anywhere that you desire. 

Do: Look at Second Hand Rings

You don't have to purchase a ring new: you can purchase a ring through classifieds, second hand shops, or even through family and friends. As you probably know, an engagement ring depreciates almost immediately after being purchased new. If you want to get the most money for your financing, you'll look at second hand rings instead. A personal loan (or even credit card advance) can be taken to any pawn shop or antique shop to look for older rings that are still very valuable.

Don't: Finance a Ring through a Wedding Store

There's a big reason why you generally don't want to finance a ring through the same company that you purchased it from. When you do this, the company selling the ring has a vested interest in giving you an overly inflated price and will often give you preferable terms for that price. Rather than selling you a $5,000 ring at 10% APR, they might try to sell you the same ring at $10,000 with a 6% APR — they're still making more money this way. 

Sometimes financing an engagement ring is the only real option — and when it is, it's a good idea to consider financing using the tips above. Just keep in mind that these types of purchases are generally very difficult to refinance and that they can take a long time to pay off. For more information, contact local professionals like 7th St Pawn Shop Inc.