Ways to Get Engagement Ring Financing – Bad Credit Options

Ways to Get Engagement Ring Financing – Bad Credit Options


9 Min Read

When two decide to tie their lives and start to plan a wedding, it’s always a happy moment. But before you say “yes” to each other, you have to go through a preparation full of fuss and multiple expenditures. If you sum up all the expenses, you may find yourself not ready to cover all of them without additional help. And a perfect engagement ring is always a cherry on top. But it’s also a detail that you have to think about before the preparation starts.

Engagement ring statistics show that an average cost of a diamond engagement ring is $6,000. But luckily, engagement ring financing with bad credit is not a myth, so nearly everyone can count on guaranteed support. Want to know how to buy jewelry with a low credit score? Let’s learn more about available ways to finance an engagement ring, including options with no credit check.

What Does Engagement Ring Financing Mean?

A young family often faces numerous expenses, from buying a house to planning a child. Engagement ring financing makes it easier for a couple to plan a general budget. It reallocates expenses in a way that reduces the financial burden. This form of ring assistance refers to the borrowed sum that you can use toward jewelry purchases. If you can’t cover the cost of an engagement ring from your savings, this option can help you out. This way, jewelry financing allows you to split the cost of the ring into multiple parts. You can make affordable monthly payments within the terms provided by your engagement or wedding ring financing option. So, you can use your savings to cover other significant expenses instead of buying jewelry.

Why May You Need Jewelry Financing?

There are three common reasons why couples can consider financing both an engagement and wedding ring with bad credit:

  1. Paying for an engagement ring upfront is difficult for your budget. Making equal monthly payments is much more affordable than paying the full cost all at once.
  2. You want to set aside some money for future family expenses instead of spending all your savings on a wedding.
  3. You’re going to reduce the financial burden that can be pretty high with all costs for wedding items and stuff.

Can I Count on Wedding Ring Financing with Bad Credit?

Most lenders prefer to work with customers who have good credit. But some stores and loan providers still consider applicants with shallow credit scores. This means that almost any credit history can be appropriate if you deal with the right service provider. Even if you have a 500 credit score which is considered bad, it’s still possible to get credit approval and purchase a diamond ring.

bad credit engagement ring

What Are Engagement Ring Financing Options for Poor Credit?

Before getting a loan for an engagement ring with bad credit, it’s better to compare various options. After you do this, you can decide on the one that fits your financial situation. Here are the most popular ways of financing diamond jewelry.

Personal Loans for Engagement Rings

A personal loan is a borrowed amount that you can spend on any personal needs without strict restrictions. Personal loans are usually not backed with collateral. Most of them are offered by traditional financial institutions, such as banks and credit unions. Personal loans are also known for having flexible payment options. It happens due to the convenient length of the repayment period.

Typically, an average personal loan lasts between 12 and 60 months. Most traditional personal loans have fixed interest rates, so your monthly payments will be the same during your loan terms. But traditional lenders always have minimum credit score requirements. Thus, get ready to meet them if you seek engagement ring financing from them. Otherwise, you may require collateral.

Bad credit borrowers can also consider accessible personal loan alternatives. They are usually offered by online direct lenders and connecting companies. For example, there are installment loans with up to two years of repayment terms. They offer a simple application process and allow you to get a $5,000 loan with bad credit, but they usually come with higher interest rates.

Jewelry Store Financing

There are many jewelry stores that offer financial programs you can access directly without visiting a lender. Stores typically provide financing options for non-promotional purchases. Thus, you need to buy a full-price wedding ring to access their jewelry financing. There are three popular options that jewelry stores offer.

In-Store Credit Cards

These are cards issued by a particular store. You can get a credit line based on your income and bank information. This money can be used to finance diamond rings at full prices. These cards are more likely to come with a 0% APR promotional period which begins from a purchase date and can last from 6 to 48 months. If you don’t repay the credit card balance within the set period, the interest rate can jump significantly.

Some stores may require a down payment or set a minimum purchase price to get the maximum loan term. Such stores like Pandora, Blue Nile, Zales, Shane Co., and Jared The Galleria of Jewelry offer in-store credit cards with reasonable terms.

Layaway Plans

A layaway financing plan is another available option. It allows you to make monthly payments over the agreed time. You will be able to take your ring home after you completely pay off its full cost. Until then, your ring stays in the store. This option can be a great solution for people who have enough time to plan the proposal of their dream.

Lease Purchase Programs

A lease purchase program allows you to get a sparkling diamond ring after signing a lease agreement and making an initial deposit. The amount of payment will be set by a particular store. For example, at Zales, you will be required to pay $79 as an initial deposit. After this, you can take your jewelry home or order shipping. Then, you start to pay your lease off and will become a ring owner right after you make your last payment.

But keep in mind that some lease programs can be administered through Progressive leasing. This means a store will request your data through major credit bureaus. Therefore, not all applicants can get approved.

Credit Cards

Besides using in-store credit cards, you can also turn to your existing card issued by a bank or credit union. This way, you will be able to use the funds toward a diamond engagement ring and enjoy all the benefits that your card can offer. But keep in mind that your jewelry purchase price can’t be over your credit line limit.

Buy Now, Pay Later

Buy-now, pay-later options typically come with an installment structure. This form of financing allows you to divide the whole purchase price equally by the length of your repayment period in months. However, it differs from personal loan options in terms of cost. Buy-now, pay-later loans are commonly interest-free. Speaking about their drawbacks, they often require a down payment and may have limited loan amounts.

financing a wedding ring with bad credit

What Interest Rate and Monthly Payment Can I Get on a Loan for an Engagement Ring with Bad Credit?

Depending on the type of financing, you can get an interest rate of 5.4% to 36%. However, some bad credit options can even reach up to 100% APR. As interest rates and loan terms can fluctuate from lender to lender, your monthly payment amount won’t be constant either. The sum you will be asked to pay depends on many factors. They include the conditions of a particular loan provider, the cost of your ring, and interest rates. Also, additional fees, the repayment period, and whether you make an initial payment play a role.

Things to Pay Attention to When Choosing Bad Credit Engagement Ring Financing

Like any other form of debt, both engagement and wedding ring financing for bad credit consists of three main features. These features determine whether the loan is reasonable:

  1. Interest rates – the lower its value, the less will be the total ring cost.
  2. Fees and charges – some lenders may charge origination fees for processing a loan or late fees for payment delays. Try to pick up options with low or no fees.
  3. Repayment schedule and loan payments. If your loan terms are too short, it will be tough for you to repay it due to significant monthly payments. But if the repayment period is too long, it may result in high loan costs. Try to choose a loan duration that is in between.

Final Thoughts – Is Financing a Wedding Ring with Bad Credit Worth It?

Sometimes, before your partner says “yes” to you, you have to be ready to say “yes” to bad credit engagement ring financing. Although experts often advise not to obtain any form of debt when it comes to wedding expenses, financing jewelry can be a good idea in some cases. For example, it may help you reduce the financial burden or allow you to use your savings for some higher-priority purchases.

Luckily, nowadays, you don’t need to have a good credit score to finance an engagement ring. People who are looking for engagement ring financing with bad credit can turn to several options. They include bad credit personal loans, in-store financing, credit cards, or buy-now, pay-later options.


How to Buy an Engagement Ring with Bad Credit?

Fortunately, there’s no excellent credit needed to finance an engagement ring. Here are steps to take:

  1. Decide on the type of financing available with your credit score.
  2. Go through an application process and get a decision from a service provider.
  3. Stick to your payment plan to avoid late payment fees.

Where Can I Finance Jewelry with a Poor Credit History?

You can turn to online direct lenders, connecting services, and jewelry stores to find a suitable form of financing. Also, some traditional lenders can offer collateral-backed loans for bad credit borrowers.

Can I Finance an Engagement Ring without Affecting My Credit History?

Sure, you can. Most online lenders and jewelry stores offer financing programs that require no credit report checks through major credit bureaus. If you apply for such a loan, your credit score will remain the same.

Who Can Qualify for Engagement Ring Financing?

Eligibility criteria can vary, but commonly you can get a loan at 18 y.o. or older, having an ID or valid driver’s license, Social Security Number, and a stable job with a high-enough income. Also, a valid checking account can be required for some forms of borrowing.

Don't let bad credit stand in the way of your engagement. Apply for financing now!Apply

Edward Evans

Written by Edward Evans

Written by Edward Evans

Edward Evans is a money management expert and a freelance author of personal finance columns. He aims to provide accessible financial advice to improve financial literacy for average Americans and inspire them to take control of their personal finances and build wealth.

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