How to Finance an Engagement Ring with Bad Credit

Buying a wedding ring is a significant event. However, it can also drain your budget. According to The Knot 2024 Jewelry & Engagement study, the average cost of an engagement ring in the US is $5,200. If your credit history is not great, and you can’t finance the purchase out of pocket, it may be difficult to find a suitable loan solution.

Luckily, there are multiple engagement ring financing options available with bad credit. Below, we will look at how an engagement ring loan works, what products are available with poor credit, and how to choose the best one.

How to Finance an Engagement Ring with Bad Credit

Even with a low credit score, there are still ways to cover the cost of an engagement ring. Each option comes with its own pros and cons, so it’s important to compare rates, terms, and total costs before committing.

Store financing & payment plans

Many jewelry stores offer financing through their own credit cards or installment plans. Usually, they apply promo APRs for 6–24 months, sometimes up to 48 months. Key benefits of this financing method include lower credit score requirements, fast approval, and no down payment needed in most cases.

However, there is also a significant downside. If you don’t pay off the balance within a promotional period, APR can increase to 25–29% annually. This can lead to debt accumulation and more money paid over time.

Personal loans

A personal loan from a bank, credit union, or online lender is one of the most reliable options. This product has fixed rates ranging from 6% to 36% and repayment terms of 12 to 60 months.

Traditional lenders usually require you to have good credit to qualify. Otherwise, they may ask for collateral or a co-signer to back your loan. Online loan providers are more likely to approve applicants with bad credit. However, they often have higher APRs and shorter repayment terms, which may result in higher monthly payments and total loan costs.

Buy Now, Pay Later (BNPL)

Services like Affirm, Klarna, and Afterpay allow you to get quick ring financing online or at checkout, often through a mobile app. The approval decision is almost instant. If approved, the ring’s cost is split into several equal payments, with the first one usually due immediately.

BNPL plans often come with no interest and no hard credit check. However, repayment terms are short (typically 6 weeks to 6 months), and missed payments can lead to penalties and negative marks on your credit report.

Lease-to-own / rent-to-own

Lease-to-own programs allow you to initiate a ring purchase process by renting it first. This option usually involves only a soft credit check, making it suitable for people with poor credit.

At the same time, the total cost may be 50–100%higher than retail ones, since fees and lease charges add up quickly. For instance, a $3,000 ring financed under a 12-month lease-to-own plan often comes with the final cost of $4,500–$6,000. 

Layaway

With a layaway, you can make a down payment and continue paying installments without getting the ring until the total balance is paid. This option involves no interest and requires no hard credit check.

Cancellation fees and store policies for late payments may apply. While it can be a good way to split the total cost, an engagement ring purchase through a layaway plan won’t suit you if you are planning to propose soon.

How Much Can You Get With a Loan for a Wedding Ring?

Loans for engagement rings are available in various amounts, depending on their type, your credit history, income, debt-to-income (DTI) ratio, and the repayment term.

Personal loans from banks, credit unions, or online lenders usually range from $1,000 to $50,000. Larger amounts are available to borrowers with good credit history and stable income.

Store-branded credit cards and payment plans can sometimes cover the full cost of the ring, but the approval limit will depend on your financial profile and the specific store’s policy.

Other financing options typically involve lower amounts. Lease-to-own programs often cover jewelry priced from $500 to $5,000. BNPLs are usually limited to $2,000–$3,000. If your credit score is low or your DTI ratio is high, you may be approved for a smaller amount and at a higher rate.

How to Improve Your Approval Odds

Getting approved for engagement ring financing with bad credit is often challenging, but there are strategies that can help improve your chances. Lenders don’t only look at your credit score. They also consider your income, payment history, and spending habits to assess how likely you are to repay the loan. Here are a few ways to increase your likelihood of approval:

• Provide collateral. Secured loans carry less risk for a lender due to a repayment guarantee. This way, you can increase your approval chances and may access more favorable loan terms.
• Look for joint loan options. Adding a co-signer with a steady income and strong credit to your application can help you qualify, since this individual will be responsible for repaying your loan if you default.
• Request a lower amount. Consider saving a portion of the ring’s cost in advance and financing only the remaining amount. 
• Verify all your income sources. A steady income is a must for borrowers with bad or no credit. Provide proof of all your money streams via bank statements or tax returns to show lenders that you can repay the loan on time.
• Pay off high-interest debts. If your debts make up more than 40% of your monthly income, lenders are less likely to approve you for a high amount. Consider paying off your outstanding credit card balance without closing the account to lower your DTI ratio.
• Build strong credit. While good credit is not mandatory for several loan types, boosting it is still the best way to access better loan terms in the future. Apply for a secured credit card or get a credit-builder loan. On-time payments will increase your FICO score over time.

Alternatives When Other Financing Options Don’t Work

Sometimes traditional financing is unavailable, especially if you have a low credit score or a high DTI ratio. Still, there are several alternatives worth considering. Each comes with its own risks and limitations, so you need to understand how they work before using them.

Pawn shop loans

With a pawn shop loan, you leave a valuable item as collateral and get a portion of its cost in cash. These loans can be obtained against rings, electronics, and other belongings. While they provide quick access to cash, high interest rates apply. If you don’t repay the funds, a broker will repossess your item.

Credit-builder loans

A credit-builder loan may be a great way to save money for a ring while improving your credit history. Just note that you will be able to access the funds only after the repayment period ends.

Installment loans

A bad credit installment loan is similar to a personal loan but has smaller amounts, higher APRs, and shorter repayment terms. At 1F Cash Advance, you can get up to $5,000 for a period of 2 to 24 months.

Payday loans

A payday loan provides quick financing of up to $1,000 for a period of 14 to 30 days. APR may reach 400%. This loan can be issued within 1 business day and does not require a good credit score. However, it may be quite difficult to handle.

Title loans

This loan provides financing by using your car as collateral. You can get between 25% and 50% of your vehicle’s value for a period of up to 30 days. You retain car ownership but can lose it if you don’t repay the money on time.

Borrowing from family or friends

This allows you to get money from your loved ones with flexible repayment terms, often without interest. Make sure you have a clear agreement so as not to damage your relationships.

Employer salary advances

Some companies or partner apps allow employees to receive part of their salary in advance. The downside is that such advances are usually limited to a portion of your earned future paycheck.

How to Choose the Right Engagement Ring Loan

Before applying for an engagement ring loan, you should pay attention to multiple factors that may affect your overall borrowing experience. Here are the main points to evaluate before you sign:

• APR. Aim for the lowest possible interest rate. The difference between 12% and 29% on a $5,000 loan over 36 months results in an extra $2,000 paid in interest.
• Fees: besides an APR, pay attention to extra charges for loan processing, late payment, or even prepayment.
• Loan term: the shorter the term, the higher the monthly payment. Longer repayment periods mean higher total interest. Use a loan calculator to determine the term that compromises both.
• Lender reputation. Check reviews, ratings, and whether the lender is transparent about terms. A reputable company is less likely to surprise you with hidden charges or unfair practices.

Let’s summarize

Engagement ring financing with bad credit is more than possible, but remember: the worse the credit history, the higher the price. Quick options like a no credit check loan can help, but you should review the terms carefully. Compare offers in advance and choose safer solutions, such as in-store payment plans, lease-to-own, personal loans, or credit union loans.

Sometimes, the best choice is to save money in advance or choose a cheaper ring and upgrade it later. Keep in mind that any loan becomes a financial obligation that will affect your future family budget. The main thing to remember is that marriage is not about the price of the ring, but about the relationship.

FAQ

Is engagement ring financing worth it?

Yes, if you can take advantage of a low or 0% APR and have a clear repayment plan. Otherwise, you risk ending up with debt that will stay with you long after and will affect your family budget. 

What credit score do you need to get a ring loan?

You typically need a credit score of at least 640 to qualify for traditional ring financing. Jewelry loans for bad credit are often available to applicants with scores of 580 or lower. Each option may come with its own terms. Check out the list of criteria set by a particular lender. 

How fast can you get approved?

Online lenders and BNPL apps usually process loan applications almost instantly. Getting a personal loan from a bank can take 1–3 business days.

What’s the easiest way to finance an engagement ring with bad credit?

Lease-to-own or BNPL are among the easiest options to get approved for with bad credit. A personal loan for an engagement ring through a credit union can also be a good way to finance the purchase if you are already a member of one.

Finance your engagement ring today!Apply