Q:

How do you get financing for your engagement ring?

A:

Quick Answer

Options to finance your engagement ring include obtaining a loan from relatives or friends, searching for jewelry stores that offer financing plans, or getting a personal loan with a low fixed rate, according to Credit.com. Be sure your credit score meets the loan criteria, and read the contract carefully.

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Full Answer

When getting a loan from a family member or friend, create a contract that includes information about payment terms, especially the minimum monthly payment and interest for late or missed payments, recommends Credit.com. While the loan does not show on credit reports, pay promptly to avoid straining your personal relationship with the lender.

Many major jewelers provide interest-free financing plans for a certain period, followed by low-rate financing, says Credit.com; however, you typically need to open a new retail credit card to qualify for these financing plans. The new account can potentially affect your credit score, and the interest-free financing may be canceled if you fail to make full payments on time after the promotional period.

Instead of getting a new credit card, you may opt to apply for a low fixed-rate personal loan that lasts from 12 to 48 months, suggests Credit.com. Because this option involves a fixed monthly payment, there?s no risk of an interest rate increase if you do not make prompt payments after the expiration of the promotional rate.

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