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How to Finance Your Engagement Ring: Comprehensive Guide to Personal Loans and More Financing Options

Sara DeSantis Updated: August 3, 2023 • 7 min read
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Financing an engagement ring is feasible if your current financial situation doesn't allow for a full upfront payment. There are many ways to finance an engagement ring, from personal loans to credit cards and more. By understanding the financial options available, you can make the best financial decision that aligns with your financial goals. 

Can You Finance an Engagement Ring?

The average cost of an engagement ring is around $5,900.

It's important to note that this number can vary depending on many factors, such as ring design, metal choice, and the actual gemstone. Diamonds still remain to be the most popular choice of engagement rings due to their timeless beauty and durability. However, today's brides also choose other gemstone options like sapphires or rubies. 

There can be many reasons why you need to finance a wedding ring, including:

  • You don't have enough savings
  • You need to spread out payment over a longer period of time
  • You need to allocate money towards other priorities like buying a house
  • You're paying off student loans

Financing can help you buy the ring you want without delaying your plans for engagement. 

The average cost of an engagement ring is around $5,900.

Engagement Ring Financing Options 

To secure financing for an engagement ring, many factors come into play. The first thing lenders will consider is your credit score. A good credit score means you are a trustworthy borrower. Next, they will look at your income stability as well as your employment history. If you think you will need to finance an engagement ring, avoid doing things that will lower your credit score. This can include applying for multiple credit cards at once, missing bill payments and switching jobs.

Many engagement ring financing options exist. From utilizing your savings to considering personal loans, jewelry store financing, credit cards, and even peer-to-peer lending, you can weigh the pros and cons of each option. 

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  • Loan Term: 12-84 months
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  • APR: 5.99-35.99%
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1. Savings

Using your savings to finance an engagement ring is a straightforward approach. You will have to set money aside over time until you've saved enough to purchase the ring outright. This option avoids taking out loans or using credit, which reduces the ring's total amount if you are not paying interest on the purchase. 

Using your savings to purchase an engagement ring is a great option if you are avoiding debt. In addition to this, you will not have to worry about interest, fees, or payments for this purchase. It can help provide financial security to save up for this purchase by allowing you to work on your saving skills and stick to a plan. 

However, saving for an engagement ring may not be the right option for you if you have a specific time for your engagement. Saving up could require you to delay your engagement, and that may not be an option. Depending on how much you can save, this may take a long time. Saving requires you to make a savings plan, like setting up a 50/30/20 budget, to reach your goal.  If you are not the best at planning ahead, it may be difficult to save for this purchase. 

  • Pro: You won't have to pay any interest.
  • Con: It may take you time to save up enough money, and unexpected emergencies or other large expenses can delay your engagement.

2. Personal Loans for Wedding Rings

A personal loan for an engagement ring is another option to help you finance an engagement ring. There are specifically designed loans for engagement rings that are available from various lenders. These loans usually provide a lump sum so you can buy the ring, which you can repay over time with fixed monthly payments. 

A loan for an engagement ring can be convenient because it lets you purchase it immediately. It also provides you with flexibility for your repayment options for a shorter or longer plan. You may be able to get a competitive interest rate on your loan if you have a good credit score. Personal loans are flexible, meaning you can use them for nearly any purchase. They're also unsecured, so you don't have to put up collateral in exchange for the funds.

Financing a wedding ring with a personal loan has its drawback. You will incur interest charges, increasing the engagement ring's overall cost. You will also need to have good credit to be approved. If you are not responsible, this type of loan could lead to additional debt if it is not managed responsibly. 

  • Pro: You can get a lump sum of money quickly, typically starting at $1,000. 
  • Con: You'll have to pay interest on the loan. Interest rates typically start at 6%, but can go all the way up to 36% depending on your credit score.

3. Jewelry Store Financing

Most people purchase an engagement ring from a jewelry store. If you are, they more than likely offer an in-house financing option to purchase the ring. These plans usually have special terms and promotion offers. Some of these promotions can be a certain dollar amount off your purchase or low to no interest, which is another great way to save. You'll be paying the store directly each month to pay off the loan. 

Financing an engagement ring directly from the jewelry store is a convenient option. You can arrange the financing right when you're buying the ring, instead of planning it beforehand. Low to no-interest finance is potential during promotional periods or even further discounts. 

If you choose to finance an engagement ring from a jewelry store, you may have higher interest rates compared to other finance options. Some jewelry stores have APRs as high as 29.99%. Also keep in mind that some stores will require you to put down a down payment of as little to 10% to as high as 80%, depending on the retailer. There can also be high penalties for late or missed payments, especially if there is a no-interest option.

  • Pro: You can get the ring right away.
  • Con: You may need to pay high interest rates, down payment and late payment fees.

4. Credit Card 

Using a credit card to finance an engagement ring involves purchasing the ring on your card. After that purchase, you will repay the balance over time. This option gives you flexibility as you can choose what card to use, the minimum payment amount, or if you want to pay off the entire balance. 

Using a credit card will give you immediate purchasing power to buy the ring directly. It also allows you flexibility with repayments. It's a great way to earn reward points, cash back, or sign-up bonuses. This can help lower your overall cost of an engagement ring. 

While a credit card is a great option, this financing option can have high-interest rates. If the balance is not paid off in full each month, you will accrue interest, increasing the cost of a ring. Your credit score can be negatively impacted if you are not able to make your payments on time or default as well. 

  • Pro: You can earn cash-back rewards on your purchase.
  • Con: If you can't pay off your balance in full at the end of the month, you'll be stuck paying high interest rates. Credit card APRs are currently around 20% on average.

5. Peer-to-Peer (P2P) Lending 

Peer-to-Peer (P2P) lending platforms can connect you directly with individual lenders. The repayment term is determined by the platform that is being used. 

P2P lending can be an appropriate alternative to traditional lenders, depending on your financial situation. It can provide competitive interest rates based on your credit score. There may be more flexible borrowing terms than conventional loan options from banks. For example, One such platform, Prosper, has APRs ranging from 6.99% to 35.99%, and you can borrow anywhere from $2,000 - $50,0000. 

Your credit score is a large factor if you will be approved for a loan on a P2P platform and what your interest rate will be. This can lead to high rates, which will cost you more in the future. There may be lower borrowing limits compared to traditional lenders as well. 

  • Pro: You may get a lower interest rate than with a personal loan.
  • Con: The process can be slow and time-consuming.


The various engagement ring financing options have pros and cons, from savings to personal loans, jewelry store financing, credit cards, and peer-to-peer lending. Financing an engagement ring can be a viable choice depending on your financial circumstances and goals. Consider factors like interest rates, credit scores, and monthly payments. Ultimately, deciding to finance an engagement ring should align with your unique situation and priorities. By making an informed choice, you can purchase an engagement ring while making the right decision for your individual financial situation and level of financial responsibility.  


1. Is it okay to finance an engagement ring? 

If you cannot afford an upfront payment, you may consider financing an engagement ring. Do your research first and calculate if you can afford the monthly payments. 

2. Is $3,000 too little for an engagement ring? 

No amount is too little for an engagement ring. While the average cost is $5,900, you can find plenty of options for under $1,000. The cost of the ring will depend on the type of stone used along with the other materials and styles. 

3. What percentage of salary should go to ring? 

Generally, experts agree that 5% of your income should go to an engagement ring. This percentage is based on your annual pretax income. It's a helpful way to estimate how much a ring will cost, but this price can be lower or higher depending on what your significant other wants in a ring. 

4. What is the 3 month rule for ring? 

The 3 month rule for a ring is a guide to help you budget how much a ring will cost. Generally, an engagement ring will cost 3 months of your annual pretax income. This can serve as a guide for how much you can expect to spend. 

Written by Sara DeSantis linkedin-icon

Sara is an Accredited Financial Counselor who has been writing about finance and teaching others about how to save, budget and invest. She also teaches Personal Financial Literacy as an adjunct professor.