Engagement Ring Loans
An engagement ring can be a hefty purchase, often serving as a barrier to popping the question you’re dying to ask your significant other. While it can indeed be challenging to pay for the engagement ring upfront, it doesn’t have to be thanks to engagement ring financing options. From a personal loan to a credit card, you don’t have to postpone your engagement any longer.
In this article, we’ll introduce you to engagement ring loans and other different types of loans, how they work, and how you can apply for one.
Are Engagement Ring Loans the Right Decision?
The answer to this question ultimately depends on your financial situation. While yes, paying upfront and getting the expense out of the way is the best way to go, it isn’t always possible, especially that engagement rings can be rather costly.
In fact, according to The Knot’s 2019 Jewelry and Engagement Study, the average cost of an engagement ring is $5,900, which isn’t a cost everyone could afford. So, in this case, engagement ring loans do seem like the way to go.
What Is an Engagement Ring Loan?
Despite being called engagement ring loans, these loans are personal loans in essence. That means that the usual criteria and standards regulating personal loans apply to engagement ring loans for medical procedures as well.
When you qualify for the loan, you receive a lump sum of money to use for the ring purchase, and then you pay it back over a specific repayment period, ranging from months to years. Generally, the loan amount ranges between $2,000 all the way up to $50,000, and you pay it back between one to seven years, depending on the situation.
How to Apply:
Most lenders, like PerfectPayDay, offer you the option of applying for the loan online through a very straightforward process. Moreover, some lenders enable you to apply for what’s called a “prequalification” that lays out all the funding options you’re eligible for and even compare your options across lenders.
Once you submit your application, you usually receive a quick response, maybe the next day at most, even if it’s a rejection.
The Pros of an Engagement Ring Loan:
Just like personal weekend loans bad credit, engagement ring loans unquestionably come with a set of benefits, including:
- They’re unsecured, so lenders won’t ask you for collateral to secure the loan for breast implants
- Their average interest rates are lower than those of credit cards
- Many lenders offer fixed interest rates, so you’re guaranteed that the instalments will be the same over the repayment period
The Cons of an Engagement Ring Loan:
On the other hand, loans are never all rainbows and butterflies, so it’s essential to understand the drawbacks of personal loans. Here are the major ones:
- Unsecured loans have higher interest rates than secured loans due to the lack of collateral
- If you happen to have a poor credit history, you’ll end up with a higher than the average interest rate
- Most personal loans have other fees, like origination fees for processing the loans, which can take away from the total loan amount or add to the amount due
How Do I Choose an Engagement Ring Loan Lender?
Comparing your options is a vital part of the engagement ring loan process; after all, you want to end up with the most value and the best offer you can get to empower you to make your dream proposal come to life. With that said, here’s what you need to consider when comparing lenders:
- Interest rate: It goes without saying that you want the lowest interest rate you can get, so compare all the available options and see where the lowest interest rate is. Plus, consider whether it’s fixed or variable.
- Fees: As we’ve briefly mentioned, many lenders charge their own fees, so you want to read the fine print at the very bottom or last page of a loan contract. Look at prepayment penalties, delayed payment penalties, origination fees, and more.
- Total loan cost: Remember, with wedding loans, you don’t just repay the amount you borrowed. So, add up the interest rates, fees, and principal loan amount to understand what you’re getting yourself into before making any decisions. They can seriously pile up.
- Total loan value: Not all lenders will offer you the same loan amount, so compare your options according to the amount you actually need. And don’t be tempted to apply for more than that; just stay within the range of the ring you have your eyes on.
- Your financial standing: The most crucial factor of all is whether you’ll be able to afford to pay the monthly loan instalments. Be honest with yourself and check whether you can realistically pay the amounts on time.
Am I Eligible for Engagement Ring Loans?
To qualify for an engagement ring loan, you need to meet the following criteria:
- Be over the age of 18
- Be an Australian citizen or a permanent resident of Australia
- Have a regular source of income and provide proof for the past 90 days
- Be able to provide a valid mobile number and email address
Engagement Ring Loans FAQs
Can I Use the Funds to Pay for the Wedding?
Yes, you can. The lender doesn’t make you provide proof that you spent the money on an engagement ring. Whether you want to use the loan amount for a ring, engagement party, outing, or wedding party, you’re free to do so. However, make sure you borrow enough.
Do Engagement Ring Loans Have a Return Policy?
In case your proposal gets turned down, you can “return” the truck maintenance loan by repaying the money to the lender before the repayment period is over. First, check that the jeweller or retailer has a return policy, to begin with, and then show the receipt to the lender.
However, do note that some lenders charge early repayment fees when you pay the solar loans amount in full ahead of time. So that’s something you need to factor in as you make your final decision on taking out a bike loans Australia.
Tips on Questions to Ask Yourself
We know you’re all set to take the next step in your relationship, but that doesn’t mean you should make any hasty decisions if you can’t yet afford to pay for the engagement ring in cash. Since a loan is a commitment in itself, here are some of the questions you need to ask yourself before deciding to take out an engagement ring loan:
- Will my credit score qualify me for an engagement ring loan?
- Will my credit score negatively affect my interest rates when getting equipment loans?
- If it will, will I be able to handle the high interest rates and make the payments on time?
- Are the interest rates fixed or variable?
- If all is fine, are there any additional fees I need to be aware of?
- Will I be able to afford the phone loans repayment instalments comfortably or will I be in a tight financial situation?
- Are there other solutions for financing the engagement ring other than taking out pool loans?
Once you answer these questions, you’ll be able to make a sound decision on whether an engagement ring loan is a right choice for you, depending on your current budget, overall financial situation, future plans, and credit history.
Pay for the Diamond Smartly!
Financing can be a shortcut to getting the diamond ring for your fiancée-to-be. It’s okay not to have sufficient cash at the moment to cover the full amount of the ring outright – especially that their prices are sky-high at the moment.
Now that we’ve shed light on how engagement ring loans work, it’s your call to make! Will love wait, or won’t it?