Engagement rings are costly, especially when you consider that you’ll want to keep them on your finger for the rest of your life. That is why a number of people choose to finance an engagement ring. This is a great way to get a ring without having to spend a fortune.
Engagement ring financing is one of the best options to have especially when the budget for engagement plus the wedding is limited. On average, every couple spends around $5000 to $6000 on an engagement ring. That is huge cash to spend on a ring especially when the wedding is still pending. In this article, we will walk through financing and buying a diamond engagement ring.
How Much Should You Invest in an Engagement Ring?
An engagement ring isn’t the only thing where your budget is going. There are a lot of things to do to successfully complete a wedding. Wedding venue booking, honeymoon costing, catering, etc. took the most fraction of your wedding budget. A wedding budget breakdown is very crucial along with the engagement ring. The optimal price you should pay for a wedding ring should exceed your 2 to 3 months’ salary.
On average, American couples spend around $6000 on an engagement ring and around 7% of Americans spend over $10,000. The price for the diamond ring can also vary based on the carats of the diamond and the city you are living in.
Always calculate the overall budget of your wedding and engagement plan and then only go for the engagement ring. Make everything on the budget and if you think you need extra cash for the engagement ring you can apply for a loan at any time.
Pros and Cons of financing an engagement ring
Pros of Financing an Engagement Ring
With extra cash from financing, you can exceed your limit and can purchase a little nicer ring for your partner.
You can spend your savings freely for your wedding as you don’t have to worry about extra cash.
A good interest rate can help you pay your loan back with ease.
As you are only paying a fraction of your income for a loan, you will still have enough money left to spend on yourself.
Cons of Financing an Engagement Ring
Any kind of loan is a financial burden on a new marriage and the extra monthly expense can hurt the family’s economic condition.
Extra cash from financing lets people spend more on unwanted things.
The loan can damage the credit score by adding extra debt.
What to Look for in an Engagement ring Financing Option?
Before financing a loan for an engagement ring, there are a few things that you should consider.
Interest Rate
Always double-check the interest rate of the loan. If you have a good credit history then there is the possibility that you can get a loan at a 0% interest rate.
Extra Fees
Most of the loans come with extra fees like service fees, penalties for delayed payment, and more. Always read the terms of service before agreeing on the loan. Check for other options if they have better fee management.
Total Payment
Before accepting the loan, calculate the total payment that you have to make in the required period. Calculate every month's payment with extra fees and interest rates added to the original loan. The overall cost will help you visualize if you should go for the loan or not.
Affordable or Not
As you are agreeing upon a loan that you have to pay back every month, you need to verify whether or not it is affordable. As it is an extra expense on your monthly income, be realistic and make sure that you can pay back the loan in time.
Different Financing Options that You can Consider
Traditional Loan
One of the best ways you can get your loan is through banks. Banks can provide various types of loans such as personal loans, construction loans, auto loans, and more. The main issue with financing a loan from banks is that it takes a lot of time to pass. Also, the fee they took for financing loans is too much to cover and the interest rate they provide also changes over time.
Credit Unions
One of the reliable sources from where you can finance your loan is “credit unions”. Credit unions are cooperative groups that are controlled by their members. But to get a loan from a credit union, you must have to be a member of the union. If you are already a member of a credit union, verify how much loan you can finance from there at what interest rate and what extra charges they take.
Credit Cards
Credit Cards can provide you with a cash advance under the regulation of a credit card issuing company. Credit cards are good only if you are utilizing a small amount of cash. One of the advantages of using credit cards is that they provide advance money at 0% interest. But if you don’t repay in time, the company can hit you with penalties with an increased interest rate.
Finance a Loan From Pay My Wedding
Pay My Wedding is an online platform that provides a wedding loan financing option. As it is online, you don’t have to worry about visiting different places for loans. Applying for a loan is fast, easy, and reliable. Here at Pay My Wedding, the engagement ring financing depends on the lender. As per the loan plan, the interest rate also varies. Pay My Wedding can provide wedding loans anywhere between $500 to $50,000 depending upon your credit history. The exact lending amount, interest rates, and repayment terms will vary depending on the final loan structure. “Can I get a wedding loan with bad credit?” you wonder, yes you can. Pay My Wedding is specialized to provide wedding loans to people with bad credit.
How to Apply for a Wedding Loan?
Before applying for a loan, you need to calculate the approximate budget for your wedding. This is important because you will need this information to fill out our online form. The online application form is simple and will only take a few minutes to fill up.
Once you have applied for a loan, we’ll best match the right lender for you depending upon the loan amount and repayment terms. If all the information provided is authentic, then you can even receive the fund on the same day. Remember you must provide a valid work phone number, a valid email address, a valid bank account in your name, and a valid working home address.
Pay My Wedding has more than 500 lenders that can provide wedding loans even if you have a bad credit history. So what are you waiting for? Apply for your loan today.