Buying an engagement ring means investing your two month salary or more for just popping the question. However, if a guy doesn’t have much to spend for, he needs to go for engagement ring financing option. Today, I’ll give you a chance to explore complete details of this option so, start getting the information which matters most to you.
What is meant by engagement ring Financing?
It means obtaining a loan from jewelry store, credit card or a lending institution, works with store on the behalf of customer, for making the payment of engagement. Many people around the world avail this funding opportunity as overall burden of engagement expenses decrease to a great extent after it.
Kinds of Engagement Ring Financing
Generally, you are able to find five main kinds of financing. Find the descriptions of these kinds.
1. Three Month In-Store Financing
It is among the most flexible kinds of financing as it doesn’t need down payment and interest from the borrower. As the name implies, this loan is issue for the three months. A person with low credit can easily get a ring of his choice from the store for around three month. This financing doesn’t bring minimum ring price restriction. The borrower needs to strictly comply with store credit policies.
2. Six Month In-Store Financing
This financing comes with six month time period. The borrower needs to pay 30-40% of engagement ring price as a down payment and remaining balance in the form of bi-weekly or monthly installments. The interest rate is largely dependent on the credit score of borrower. There is inverse relationship between score and rate; low score means you need to pay high interest rate. However, some stores offer interest free financing. If your store also offers the same option, pick it first.
3. One year Plus in-Store Financing
This financing lasts after a year and a borrower who wants an expensive ring goes for it. The charges and fees of this loan is higher as compared to other. Borrower first needs to pay 25-30% of total amount as a down payment. Later on, he needs to pay installments. Each installment has a part of principle and interest (sometime financial processing fee also). Interest rate is determined after considering the credit score and it is generally 9 to 20 percent.
4. Jewelry Store Credit Card financing
Big and famous jewelry stores issue a credit card of store for engagement ring financing. A customer needs to apply for the credit card of store and then he is free to make a purchase of his favorite diamond ring. If you compare this option to other available options of financing, you come to know that the rate and fees of it are higher. The credit terms and conditions of each store are different. Some stores charge interest while other come with interest free financing option. In the same manner, some store charge a monthly fee of card while other charge only when you make a purchase.
5. Social Financing
Well, this is a new idea or simply an alternative to in-store financing. There are many sites such as Prosper and Zopa those bring borrower and lender together at one place. You can get a loan from such sites with a fixed interest rate and then you can repay the amount in the installment form. Generally, interest rate is set by the lender and it is fixed.
There is no need to postpone your engagement when there are a number of engagement ring financing options are available to you. Go and arrange your big day right now.