alvaro gonzalez/ Getty Photos; Illustration by Austin Courregé/Bankrate
Key takeaways
- In-house financing, bank cards, private loans and point-of-sale financing are frequent methods to fund engagement rings.
- Options just like the setting, materials and stone affect the price of the ring.
- The typical engagement ring prices lower than $6,000 — however it may be costlier in the event you select extra luxurious choices.
There are a handful of the way to finance your engagement ring buy to make it extra manageable, corresponding to making use of for a fee plan with a jeweler or taking out a private mortgage. On any given day, a very good high quality ring can set you again a number of thousand {dollars} — and shopping for an engagement ring in 2024 could also be tougher than standard.
A Bankrate survey confirmed that whereas inflation is down, many economists don’t consider it’s going to hit the Fed’s goal till 2025. That mentioned, having a funds that intently aligns along with your scenario is essential when ring procuring.
Financing engagement rings statistics
- The typical quantity People spent on an engagement ring in 2023 was $5,500, based on The Knot.
- The most well-liked worth vary for marriage ceremony bands runs from $700 to $1,200, based on info from Brides.
- People spent about $7,820 for his or her entire engagement in 2020. This consists of the ring, photographer and each engagement and bridal events.
- Diamonds are nonetheless the preferred stone in relation to engagement rings, accounting for 85% of all rings bought in 2023.
- Lab-grown diamonds are a preferred development — largely as a result of they’ll price 50 to 70 % lower than pure diamonds.
- The typical dimension of an engagement ring is one carat.
- Yellow gold engagement rings are rising in recognition, with a 26% enhance since 2015 — however white gold nonetheless stays the preferred in 2023.
Budgeting for engagement rings
You might need heard the outdated rule of thumb that an engagement ring ought to be value roughly three months of wage. Diamond jeweler De Beers popularized the concept of tying a hoop’s worth to your month-to-month earnings in its Nineteen Thirties advertising and marketing marketing campaign. An engagement ring doesn’t have so as to add as much as that a lot cash, however it is best to nonetheless be ready to spend not less than a grand on the acquisition.
The Knot’s 2023 Jewellery & Engagement Research discovered that the common engagement ring worth that buyers paid was $5,500 — down from $6,000 in 2021. Ring setting, steel kind and diamond or gemstone particulars — like score and dimension — will all affect the worth of your engagement ring.
Due to the excessive price, there are a number of choices you may discover if it’s essential to finance the acquisition of your ring.
Jewellery retailer financing
Many main jewellery retailers supply in-house financing to assist their clients pay for an engagement ring. These take the type of an installment mortgage — you make incremental month-to-month funds towards the mortgage steadiness, plus curiosity.
Typically, jewellery financing affords extra versatile credit score necessities in comparison with borrowing a mortgage from a conventional financial institution. Phrases will range by retailer, as will financing necessities, like a minimal buy quantity.
Jewellery retailer financing is greatest for comfort
In order for you a handy financing supply and don’t have robust credit score, it’s possible you’ll wish to take a look at in-store financing.
Bank card
Utilizing a bank card to finance an engagement ring generally is a strategic possibility for accountable debtors.
For instance, let’s say you may have robust credit score and qualify for a promotional 18-month 0 % APR rewards bank card. When you can repay your card earlier than the promo interval ends, it may end up in paying no curiosity whereas additionally incomes rewards factors or miles.
In case your credit score doesn’t qualify for a promotional charge supply, remember that bank card curiosity will be steep. When utilizing a bank card with out a no-interest promotion, calculate whether or not you may have the funds to repay the ring throughout the subsequent billing cycle.
Bank card financing is greatest for strategic consumers
People who’ve robust credit score and might qualify for a low- or no-interest interval or can repay the ring buy by the following billing assertion could possibly get a very good take care of a bank card.
Private mortgage
Like jeweler financing, a private mortgage is a sort of installment mortgage. Nonetheless, in contrast to jeweler financing, for the reason that lender is a 3rd occasion, you must get permitted for the mortgage earlier than procuring to your preferrred ring.
Eligibility for an unsecured private mortgage varies between lenders, which incorporates credit score necessities for approval. The benefit is evaluating charges from a number of lenders to search out the bottom possibility — even in case you have less-than-perfect credit score. That mentioned, in the event you’d wish to safe one of the best supply, make sure that to spice up your credit score rating by reducing high-interest debt, amongst different issues, earlier than you apply.
Private loans are greatest for charge procuring
Patrons who’ve good credit score and wish to store round for a aggressive rate of interest could wish to reap the benefits of a private mortgage to finance their engagement ring.
Purchase now, pay later mortgage
Purchase now, pay later (BNPL) loans, additionally known as “point-of-sale financing,” have gained recognition in recent times. BNPL providers, like Affirm, Klarna and Afterpay are sometimes built-in into the checkout course of when shopping for an engagement ring on-line.
Typically, you pay a proportion of the overall price upfront. Then you definitely make equal funds over a brief interval to repay the remaining steadiness. Relying on the compensation time period you select or your credit score, you is likely to be supplied a BNPL mortgage at no curiosity.
BNPL loans are greatest for internet buyers
When you’re procuring on-line and need a seamless financing expertise with the potential to pay no curiosity for a brief compensation time period, BNPL could also be a good selection.
