Average Costs Of Engagement Rings And Wedding Bands
Did you know the average cost of an engagement ring these days is about $5,500? Keep in mind that this cost doesnt include the wedding bands. The average cost of wedding bands for both the bride and groom is a little over $1900. So once you add the cost of the bands, youre really getting up there in the amount of money you may end up spending on rings. For many, thinking about this amount of money, makes financing for an engagement ring seem attractive.
Use A Credit Card With Zero Percent Interest
You could also use a non-jeweler credit card that offers a zero percent interest rate. Lots of issuers offer introductory rates of zero percent for a period of time. So do your research to see what offers are available. Again, you want to pay attention to the terms being offered before you sign on the dotted line.
Average Engagement Ring Cost
Youre ready to take your relationship to the next level and purchase an engagement ring. But how much should you spend? According to The Knots 2018 Wedding Study, the average engagement ring costis $5,580 however, many couples spend more while many others spend less. Deciding on a budget prior to purchase will help you find the perfect engagement ring for the one you love.
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Banks That Offer Wedding Loans
Since a wedding loan is a personal loan, you can get one at almost any full-service bank. Banks often do not advertise them as wedding loans, but if their underlying product is a personal loan with no real limitation on use, you can get one for your wedding.
According to Student Loan Hero, there are several online banks that can provide the needed funding. These include Prosper, Earnest, and LightStream. Loanry is another excellent source for all types of funding needs that include helping you find a lender.
Alicia R Hudnett Reiss Cfp
Washington, D.C.Cash, credit or personal loan? Cash, or plan ahead to borrow
In an ideal world, you should have enough saved up enough cash to pay for the cost of your wedding, argues Business of Your Life founder Alicia R. Hudnett Reiss.
“But typically, that’s not done,” she admits.
It takes most people years to save up enough to pay out-of-pocket for a wedding, so it’s not uncommon for people to use credit cards to make up the difference between their cash savings and the actual wedding cost.
But if you want to avoid debt, start saving way ahead of time. Whether you’re newly engaged or know that you want to pay for your child’s wedding one day, start crunching the numbers now to see how long it would take you to save.
“Be realistic,” says Hudnett Reiss. Estimate the total cost, then break it up into smaller monthly amounts you can set aside until you reach that goal.
Then, if you know you’re going to come up short, look for ways to borrow strategically.
“Sometimes you can get a 0% interest promotion,” says Hudnett Reiss, either on a credit card you already have or a new one you apply for. For example, the Discover it® Cash Back offers a competitive introductory 0% APR for the first 15 months on purchases and balance transfers . There is a 3% intro balance transfer fee with an up to 5% fee on future balance transfers . Apply for the Amex EveryDay® Credit Card, and you might be able to benefit from 0% intro APR on purchases for 15 months from the date of account opening, .
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Can You Get Engagement Ring Financing With Bad Credit
Yes, its 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.
Financing The Engagement Ring
If youhavent saved for the engagement ring in addition to the wedding, or you prefernot to dip into the wedding day coffers just yet, engagement ring financing maybe a smart move. Manyjewelers offer financing options sometimes with low or 0% APR introductoryrates.
Youneed to consider whether it makes sense to accumulate an additional line ofcredit , especially one that may jump to a high APR after theintro rate expires.
If you are already considering a loan to cover the wedding itself, calculating the cost of the engagement ring into the total amount youd like to borrow may be a smarter financial move.
Here are just a few of the benefits of using a personal loan for your engagement ring purchase
A personal loanfor an engagement ring may offer greater flexibility than some of the in-storefinancing options offered by your jeweler. For instance, you may customize yourloan amount and length in order to get a set regular monthly payment that fitsyour budget.
An established lender may offercompetitive interest rates with flexible loan repayment terms. This can save you money in interest over time compared to the jewelers financing package. Those jewelers promotional introductory interest rates often end up meaning the ring costs you a lot more in interest if you dont pay it off in time. With a personal loan youll always know what your monthly payment will be.
We may charge a fee if your payment is late.
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Features To Consider When Comparing Engagement Ring Loans
Before deciding on an engagement ring loan, compare the following features to ensure you’re getting the best deal available to you:
Factors To Consider When Comparing Wedding Loan Lenders
Factors to pay particular attention to when comparing lenders include:
- Typically, the lower the APR, the less youll pay over the life of the loan.
- Fees. Fees such as application fees, origination fees, prepayment penalties, and others should be compared. On the other hand, some lenders dont charge any fees.
- Prequalification. Getting prequalified can give you a unique estimate of your interest rate, monthly payment, and loan term based on factors like your credit score, history, income, and others. This isnt a guarantee but can help you more accurately compare your options.
- Convenience. Check out discounts, autopay, same-day funding, and other features.
- Customer service ratings and reviews. Read what current and past customers have to say about the company and its customer service.
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What Are The Benefits And Drawbacks Of An Engagement Ring Loan
Pros
- Get the ring you want. If you dont have money to pay for the engagement ring you want to buy, a loan can help you make the purchase now and pay it off over a few months.
- Quick and easy process. Getting an engagement ring loan is quick and easy. In some cases, you can get your hands on the approved funds by the following business day.
- Interest-free offers. If you choose to go the in-store financing route, you may be able to score an interest-free period.
Cons
- The burden of debt. If you borrow more than your means, repaying the loan can become a challenge.
- Monthly payments. Monthly payments may seem convenient at first, but you’ll be putting a few hundred dollars into a ring every month. If you’re planning your wedding, it could be better to put that money toward savings.
- High interest. Borrowers without good credit may face steep interest rates that can make a ring cost thousands of dollars more than its retail value.
Valentine’s Day proposals
If there were ever a day made for showing your boyfriend or girlfriend how much you love them, Valentine’s Day would be it. And what better way to show your devotion to your partner than by buying an engagement ring and asking for their hand in marriage? That’s why February 14th is one of the most popular days for couples to get engaged.
Learn More About Personal Loan For Engagement Ring
You may be able to qualify for a personal loan with less than perfect credit. To start, you will want to figure out what you qualify for and what kind of payment you can afford. Once you have your pre-qualification set up, you can go shopping for the perfect engagement or wedding ring. Keep reading to learn more about finding the best financing for an engagement ring.
Read more – FAQ
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Engagement Ring Loan Calculator
Ready to pop the question, but still working on the ring? Financing a ring could be a smart move for some. Calculate monthly payments with this guide.
Before you go home with your partner’s dream ring, it pays to be prepared.
With this calculator you’ll know:
Stick around for money-saving tips for engagement ring shopping, financing FAQs, and more.
Engagement Ring Loan Calculator
How To Apply For Personal Loan For Engagement Ring
1Pre-qualify
Fill out easy online form to check for pre-qualified offers with no impact to your credit score
2 Select offer
Compare terms and payment options to select offer thats best for you
3Finish application
Complete application process on your selected lenders website
4Receive funding
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How To Compare Wedding Loan Lenders
There are dozens of online lenders and a wide selection of banks and credit unions where borrowers can apply for a personal loan to fund their wedding. Brand recognition is important, but its not necessarily going to get you the best deal. The best way to compare them is to start out by asking the following three questions:
Interest rate is important because it determines how much you will pay in total to repay your wedding loan. Do the math. The terms and conditions determine the number of years youll have to complete repayment. Remember, interest accumulates during that entire period, so long-term loans are more expensive. Fees and charges are self-explanatory.
Where Can I Get A Personal Loan For An Engagement Ring
Most banks, credit unions, and online lenders offer personal loans that can be used for engagement rings. One of the easiest ways to shop for personal loans is online. You may be hesitant to use an online lender, which should give you even more reason to use a platform such as Acorn Finance. At Acorn Finance, we have a network of trustworthy top national lenders that you can access personal loan offers from.
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The New Engagement Ring Spending Rule There Are No Rules
You may have read, heard or been told that spending three months salary on an engagement ring is standard. Theres no doubt that three months salary would buy a gorgeous ring and thats fine if you can afford it.
However, this old adage doesnt account for inflation, the cost of smartphones, or other modern variables which affect budgeting. The new rule on engagement ring affordability is this: there is no rule.
Simply decide on what you can afford and spend that amount. Here are some ways to establish the best budget for an engagement ring.
What To Do Before Getting A Wedding Ring Loan
Does your credit report reflect any outstanding debt that you should have taken care of by now? If so, you should consider having that debt satisfied before taking out a wedding ring loan. This debt can include small debts such as outstanding medical bills, utility bills, or anything that can be paid off in a matter of two or three pay periods. This debt will clog up your credit and increase your debt-to-income ratio, making your eligibility for the loan flawed.
Another outstanding debt that can impact your debt-to-income ratio is any car notes on your credit, student loan payments, and credit card balances. If your credit card balances are not below thirty percent, then you should consider paying them down quickly. Any time your credit card balances exceed thirty or forty percent, you can expect your credit score to be negatively impacted based upon this information.
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How To Use A Credit Card To Buy An Engagement Ring The Smart Way
Although financing an engagement ring with a credit card may be the worst way to go, I suspect it may also be the most common method of doing so. .
This is why the way to use credit cards responsibly is to pay the entire balance each and every month.
Sometimes, however, credit cards offer promotions in which new customers can get an introductory 0% interest rate on new purchases for 12 months or longer.
This could work even better if you sign up for the new credit card right before you make a big purchase like a ring, because cards will often give you a sign-up bonus if you spend a certain amount within the first three months.
So if you can pay off the ring before the promotional APR expires, a credit card might be your best option.
One might even argue that you could buy your ring with a 0% credit card, even if you had the cash to do it. You can leave the cash in a savings account earning interest and earn rewards from the credit card when you make the purchase.
An example of the perfect credit card in this situation would be the . It offers a 0% Intro APR on Purchases for 15 months and on Balance Transfers. Also, youll get a $200 bonus when you spend $500 on purchases in the first three months from account opening. Not only is that $200 you can put towards the ring of your partners dreams, but as long as you pay it off during the promotional period, you have an easy-to-manage repayment plan.
