Are you ready to say "I Do", but your wallet isn't in agreeance? If that's your story, you're not alone. Weddings nowadays are quite expensive.
In 2020, the average cost of a wedding in the United States is roughly $29,000 to $31,000, not including the honeymoon. For most people, that's a big chunk of change. Luckily, you don't have to put your love on hold while you save up for a ring and other wedding costs.
With that said, if you're interested in learning more about getting a wedding ring loan, check out the information below.
How to Get a Loan for a Wedding Ring
Before you make any other plans for a wedding, the first big purchase is the ring. If you're trying to figure out how to afford a wedding ring, don't fret.
The best way to get a wedding ring loan is through PayMyWedding.com. The site has a database of over 500 lenders and they'll help to match you with a company that's willing to finance you. There are no fees or down payments, and the cash is sent directly to you upon approval.
The application only takes five minutes and you can use the money to put towards any wedding cost that’d you like. Plus, loans are available from $500 to $100,000!
The Pros of Getting a Wedding Ring Loan
As you know, there are pros and cons to borrowing money. If you're considering a wedding ring loan, weigh your options first. We'll start with the advantages first:
Most Loans Are Unsecured
The advantage of getting a wedding ring loan is that most of them are unsecured. That means there’s no collateral involved. You can access loan cash without having to put aside cash or a deposit to secure the funds.
On the other hand, lots of other loans come with stipulations. For instance, if you default on your mortgage or car payment, those items get taken back from you.
However, every wedding ring loan lender is different, so the requirements will vary depending on the contractual agreement.
Fast Cash
One of the biggest advantages of getting an engagement ring loan is that you get the funds quickly. If you don't have the money to get a ring, it could take months or even a couple of years to save for it.
However, if you qualify through a lender, the money is sent fast and there is no waiting. Not to mention, you could even get the funds as quickly as the same day.
More Time to Pay It off
If you go directly into a jeweler, most of the time you have to pay everything upfront. Or if they offer a payment plan, you may not get as much time to pay it back as you would through a finance lender.
The good thing about a wedding ring loan is that you can take your time paying it off. Usually, a loan installment agreement is between 6 to 72 months.
The Cons
As beneficial and convenient as it is to get a loan for a wedding ring, there is a downside. Here are some of the disadvantages:
It Becomes Debt
A wedding ring loan comes in handy when you need it, and that's great. However, that money will have to be paid back.
Therefore, it becomes debt and you have to figure it in with the rest of your wedding expenses. This can be a bit of a headache once life gets back to normal and the honeymoon is over.
With that said, if you're going to borrow money for a ring, make sure you have a game plan for paying it back. It's a good idea to only borrow a portion of the funds needed for the ring.
For instance, if it costs $4,000, use $2,000 from your savings and get a loan for the rest. That way, you don't have to worry about paying as much money back.
You May Not Qualify for a Low Rate
If your credit isn't great, you may not qualify for a low rate. While a lender may take a chance on you and give you the funds, it'll likely come at a hefty price.
Take your credit into consideration before applying for a wedding loan. If you can't afford to pay out of pocket, it may be better if you pay off some debt first before applying for the loan.
If you have small debts that you can pay to improve your credit balance and score, take care of them. It'll ensure that you can get a better rate for the ring.
You'll Pay More than the Out of Pocket Price
Speaking of the interest rate, you pay more when you get a loan for a ring versus paying out-of-pocket. Obviously, interest is always applied to a loan, so you can expect to spend more money over time, as opposed to paying the price upfront.
If you don't have the money for an engagement ring, then it might be worth it to spend a little more. You have to consider which option is best for you.
An Engagement Ring Loan Made Easy
Sometimes you can't put your life on hold why you wait to become “rich”. If you need a wedding ring loan, visit PayMyWedding.com. Our service is free, and we help you get the funds for your wedding fast!