How to Finance an Engagement Ring

When you’re about to pop the question, your finances may not be the first thing on your mind — but they might be the second. Engagement rings and the weddings that follow are among life’s priciest purchases, so starting on the right foot is key.

The average cost for an engagement ring in 2021 was $6,000, according to wedding website The Knot. The cheapest way to pay for a ring is with savings, but if you haven’t saved up or you’re reserving your savings for the big day, here are engagement ring financing options to help cover the cost.

Get matched with a zero-interest credit card

You could finance the ring with no interest using a 0% introductory credit card. These cards have promotional periods of 15 to 21 months, during which you pay no interest on purchases you make. What’s more, choosing a card that also grants travel rewards can mean cash for a honeymoon.

However, note the credit limit on the card; if the ring purchase exceeds 30% of your overall available credit, your credit score may take a hit.

» MORE: How a credit card can help you finance an engagement ring

When it’s best: Zero-interest cards are best if you qualify for one with a high credit limit and you can pay off the balance within a year or so, avoiding any high interest rates that kick in after the promotional period.

Qualifications: You typically need good to excellent credit (690 or higher FICO) to qualify.

Something new: 'Buy now, pay later'

Increasingly popular “buy now, pay later” services like Affirm, Klarna and Afterpay can break your purchase into smaller installments, sometimes with zero or low interest. These companies partner with all types of vendors, including jewelers like Brilliant Earth, Best Brilliance and Kay Jewelers.

The lender may conduct a soft credit check, but you don’t need good credit to qualify for financing. BNPL companies may not report on-time payments to the three main credit bureaus, so using one isn’t guaranteed to help build your credit. Late payments, however, often are reported, which could hurt your score.

» MORE: What is buy now, pay later?

When it’s best: These point-of-sale loans are best for large, one-time purchases like engagement rings when you can qualify for a low rate and make all payments on time.

Qualifications: There’s no minimum credit score required. Most companies look at the funds available on the debit or credit card you’re using at checkout, any prior history you may have with that lender and the details of your purchase — including price and desired repayment term.

» MORE: 6 buy now, pay later apps to consider

Take financing with your jeweler

Some jewelers offer payment plans that include low- or no-interest promotional periods but high interest rates — up to 29% — after the period ends.

Promotional periods on jeweler cards tend to be long (think two or three years), but if you still have a balance once the promotion ends, the jeweler may retroactively charge interest accrued since your purchase. This is different from no-interest credit cards, which charge interest only on any balance remaining after the promotion ends.

When it’s best: A jeweler payment plan may be the right choice if you qualify for a low- or no-interest plan and can pay the ring off in full before the promotion ends.

Qualifications: You need good or excellent credit to qualify for many store credit cards.

Something borrowed: Engagement ring loan

Well-qualified borrowers may get a low interest rate on a personal loan that can be used to purchase an engagement ring. These loans provide a lump sum of money that you repay in monthly installments.

Annual percentage rates on personal loans start around 6%, and repayment terms are usually two to seven years. The fixed monthly payments can be easier to budget for than revolving payments on credit cards.

Use a personal loan calculator to see estimated rates and payments on engagement ring loans, based on your credit score. Pre-qualifying will allow you to see personalized rates and terms without affecting your credit score.

When it’s best: A personal loan is a good engagement ring financing option if you qualify for a low rate and need two or more years to pay off the ring.

» MORE: Compare unsecured personal loans

Qualifications: Borrowers with excellent or good credit, little existing debt and high incomes are more likely to be approved for the lowest personal loan rates. Those with low credit scores may still qualify, but will pay more interest.