Can you finance an engagement ring with bad credit?

Selina Johansson

Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders who compensate us for our services, all opinions are our own.

You may be able to get engagement ring financing with bad credit through personal loans, credit cards or in-store financing. (Shutterstock)

Shopping for an engagement ring is exciting, but determining how to finance this large purchase can be worrisome. The national average cost of a diamond engagement ring is $6,000, according to The Knot 2021 Jewelry and Engagement Study. But if you’re like a third of engagement ring buyers, you’ll likely spend between $1,000 and $4,000. 

You can finance an engagement ring with bad credit, though it may not be the right option for your long-term financial goals. Let’s take a look at where you can secure engagement ring financing with bad credit, what factors to consider, and whether it’s the right option for you.

With Credible, you can compare personal loan rates from various lenders in minutes.

Can you get engagement ring financing with bad credit?

Yes, it’s possible to finance an engagement ring even if you have bad credit. But keep in mind that although you may be approved for a financing plan, you may not qualify for the best rates and terms. 

Lenders view your credit score and history to determine what rate to offer you. If you have a lower credit score or little to no credit history, lenders consider you a riskier borrower than someone with good to excellent credit. So, lenders will charge higher rates or offer stricter terms to offset the risk that someone with bad credit will default on the loan.

What credit score do you need to finance an engagement ring?

Because some lenders work with people with bad credit or shallow credit histories, it’s possible to finance an engagement ring with virtually any credit score. But FICO scores of 579 and below are considered bad credit, which decreases your chances of obtaining financing with low rates and flexible terms. 

Where to get engagement ring financing with bad credit

No matter your credit score, you do have multiple options for financing an engagement ring. Keep in mind that your specific credit history and financial situation will influence which one is right for you. 

Here are some engagement ring financing options to consider.

Personal loan 

Personal loans are typically unsecured, which means you don’t have to put up collateral for the loan. You can use them for a variety of purposes, and they’re available from banks, credit unions, and online lenders. 

Some of the best personal loans have fixed rates, long repayment terms, and a fast application process. Although bad credit personal loans are available, these options are limited, may include additional fees, and the approval time may take longer. 

Credible makes it easy to compare personal loan rates from multiple lenders — without affecting your credit.

Finance through a jewelry store 

In-store financing can be a convenient option, especially when the jeweler extends a 0% purchase APR for a set period of time. Store credit cards may be easier to secure with poor credit, and they may offer rewards when used in-store. 

But many of these cards can only be used at a specific business. And if you’re still carrying a balance when the promotional period expires, you’ll start accruing interest at the card’s regular rate — and retail credit card rates tend to be much higher than traditional credit cards.

Credit card 

Paying for an engagement ring with a credit card allows you to continuously draw and pay off from your credit line. If you make your payments on time, it can even help you improve your credit. 

Similar to in-house jewelry financing, some credit cards come with 0% APR introductory offers, which could help you avoid paying interest for a certain amount of time. But as with other introductory APR offers, you’ll start to accrue interest if you’re still carrying a balance when the offer ends.  

Buy-now, pay-later loan 

A buy-now, pay-later loan allows you to split a large purchase into multiple interest-free installments. Some lenders don’t require hard credit checks or extensive credit applications to qualify.

The interest-free installments are a benefit if you can’t afford to pay more than the original purchase price. The drawback is that you may need to provide a down payment, and the amount of credit you’re extended may be limited. 

What to consider when choosing engagement ring financing

An engagement is a milestone to be celebrated, but just because you’re approved for financing doesn’t mean it’s necessarily the right option for you. Consider the following when choosing engagement ring financing:

  • Fees — Fees can quickly increase your overall repayment amount. For example, credit cards may charge annual fees, personal loans may come with origination fees for processing the loan (especially if your credit score is lower), and nearly every option will charge fees if you miss or make a late payment. Some lenders may also charge a prepayment penalty if you pay off the loan early.
  • Interest rate — Securing the lowest interest rate is important, but you should also consider whether the rate is variable or fixed. Fixed rates won’t change during your term, but variable rates may change over time, which will increase your overall repayment amount.
  • Monthly payment amount — Before you finance an engagement ring, look over your budget to make sure you can comfortably afford the monthly payments.
  • Repayment term — A short repayment term could put unnecessary pressure on your budget, while a longer repayment term could significantly increase your overall costs if the interest rate is high.

If you want to use a personal loan to finance an engagement ring, Credible lets you easily compare personal loan rates, all in one place.

Should you finance an engagement ring?

The best way to buy an engagement ring is to save up the cash so you don’t have to finance the purchase. This allows you to avoid interest charges and the stress of keeping up with a monthly payment.

But financing an engagement ring might make sense if you can score a great interest rate, comfortably make the monthly payments, and improve your credit in the process. If you can only qualify for a credit card or loan with a high interest rate, or if the monthly payments will put too much strain on your budget, financing an engagement ring could turn your token of love into a stressful debt. 

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