Engagement Ring Financing: 6 Best Options

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Engagement Ring Financing

An engagement ring is a symbol of love and commitment, representing the first step on a lifelong journey together. But as the average cost of engagement rings keeps going up, many couples find that figuring out how to pay for it is an essential part of the buying process. The Knot reports that the national average spent on engagement rings is $5,500. Choosing the right financing option can turn the dream of giving the perfect ring into reality, easing the worry of financial pressure.

Read on to explore the top engagement ring financing options that can help you make a savvy decision—a step that not only leads to an unforgettable proposal but also to sound financial planning. 

In the meantime, ​​MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $50,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

How to finance your engagement ring in 6 ways

Financing your engagement ring can be a strategic way to manage your budget while securing the perfect symbol of love. Here are several methods to consider, each with its advantages and drawbacks.

1. Personal loans

Taking out a personal loan for an engagement ring involves borrowing a fixed amount of money to be paid back with interest over a predetermined period. It’s ideal for those who need a lump sum and prefer stable monthly payments. 

A credit check is typically required, with most lenders looking for a minimum credit score of around 600, although this can vary. According to Gage Diamonds, some lenders accept scores as low as 580, but these loans often come with a higher interest rate. 

Applicants will need proof of income and possibly other financial information. The application process usually involves filling out a form with a lender, either online or in person.


Personal loans offer a structured financing option. Some benefits include:

  • Fixed interest rates provide predictable monthly payments.
  • Potentially lower interest rates compared to credit cards for those with good credit.
  • No collateral required.


On the other hand, there are some things you’ll want to consider:

  • High-interest rates for those with poor credit.
  • Additional fees may be involved.
  • Could lead to debt if not managed properly.

2. Jewelry store financing

Many jewelers offer financing options, either through in-store credit or partnerships with lenders. This option is suitable for those who prefer a one-stop-shop experience. Credit checks are common, and terms vary widely. Some stores offer promotional periods with low or no interest, but a good credit score is often required to qualify. The application can usually be completed in-store or online.


Jewelry store financing reveals several attractive benefits for those looking to make their engagement ring purchase seamless and rewarding. 

  • Convenient and can include incentives like no interest for a set period.
  • Immediate approval and purchase in some cases.
  • Exclusive discounts for financing customers are sometimes offered.


Potential downsides that could affect your buying decision include:

  • Possibly high-interest rates after promotional periods end.
  • It may encourage overspending.
  • Financing is limited to the store’s inventory.

3. Credit cards

Using a credit card, especially a new one with a 0% APR introductory offer, can be a smart way to finance if you can pay off the balance before the promotional period ends. A credit check is necessary, and a good to excellent credit score is typically required to qualify for the best offers. The application process involves applying for a new card or using an existing one with a favorable rate. 


Here are the key advantages of using a credit card:

  • Possibly rewards points or cashback on the purchase.
  • No interest if paid off during the introductory period if the card has a 0% APR introductory period.
  • Consumer protection benefits.


Some risks that warrant careful consideration include:

  • High-interest rates can be waiting for you after the promotional period ends.
  • Potential for overspending.
  • Can negatively impact your credit score if you hold a high balance on the card.

PRO TIP! Explore credit and debit card options tailored to different needs and preferences.

4. Cash advance apps

Cash advance apps like MoneyLion’s InstacashSM allow users to get a small amount of cash in advance of their next paycheck. There’s typically no credit check, making it accessible to those with lower scores. These are not loans but can provide quick access to your future pay for urgent purchases.


Here’s what makes cash advance apps a compelling option:

  • Quick access to funds.
  • No credit check required.
  • Easy application process through an app.


The convenience of cash advance apps comes with limitations and considerations, such as:

  • Limited to small amounts.
  • Fees may apply for expedited funds.
  • You typically pay the money back when you get your next paycheck, reducing your paycheck amount on pay day.

PRO TIP! You can access up to $500 of your paycheck, any day with MoneyLion InstacashSM. No interest. No credit check. No mandatory fees.

5. Buy now, pay later loans

These loans split your purchase into smaller, interest-free payments over time. They’re best for those who can manage short-term payments without interest. The application process is straightforward, often requiring just a few clicks at checkout.


These types of loans are appealing for various reasons, including:

  • They are interest-free if paid on time.
  • Instant approval and use.
  • No traditional credit check required.


Some of the drawbacks to buy now, pay later loans are:

  • They can lead to impulse purchases. Studies show that “Buy Now, Pay Later” plans can make people buy things on a whim, leading to unwanted debt because they encourage buying more than needed.
  • Missed payments may incur fees or interest.
  • Limited by participating retailers.

6. Save up

The most straightforward and financially sound method is simply saving up for the ring. This approach is best for those who prefer to avoid debt.


Perks to saving up and paying for a ring in full include:

  • No interest or fees.
  • Encourages financial discipline.
  • Reduces financial stress associated with debt.


The downside of saving for a ring and paying outright include:

  • Requires time and patience.
  • May delay the proposal.
  • Missed opportunity to build credit.

PRO TIP! MoneyLion offers a convenient marketplace to compare high-yield savings accounts from our trusted partners that could help grow your money.

Shine bright and stress less

Don’t let financial concerns dim the sparkle of your big moment. With flexible ring financing options, you can step confidently towards your future, without the weight of immediate expenses. Remember, the value of love is priceless, and the path to your engagement shouldn’t be paved with compromises. Unlock the door to your new chapter today, without letting the cost of commitment stand in your way.


What are the interest rates for engagement ring financing?

Interest rates for engagement ring financing can vary significantly based on the financing option you choose. For example, jewelry store financing often promotes interest-free periods, such as 6 or 12 months, but if you don’t pay off the balance within this promotional period, you might face high-interest rates, potentially as much as 30% to 50%​​​​. Personal loans offer another route, with average interest rates of around 12%, which can be a more affordable option, especially for those with good credit​​.

Do I need good credit to qualify for engagement ring financing?

Good credit is generally required to qualify for the most favorable engagement ring financing options. Credit checks are common for most financing routes, including jewelry store financing, personal loans, and credit cards. The requirement for a good to excellent credit score is particularly critical if you’re hoping to take advantage of a low or zero-interest promotional offer.

Is it better to finance an engagement ring or save up and pay in full?

Deciding whether to finance an engagement ring or save up and pay in full depends on your financial situation and priorities. Financing can enable you to purchase the ring now and spread the cost over time, which might be helpful if you’re planning a proposal soon. However, paying in full with savings is the most financially responsible choice, as it avoids interest and fees, fostering better financial health and discipline.

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