Best Jewelry and Engagement Ring Financing

If you’re planning the perfect moment to show that special someone in your life just how much you love them with an engagement ring or piece of jewelry, there are financing options if you can’t cover the purchase price with cash.

Here’s our extensive research and recommendations for engagement ring financing and jewelry loans.

Best loans for jewelry financing

There are two popular options for jewelry and engagement ring financing: personal loans and home equity loans or home equity lines of credit (HELOCs).

Personal loans can be convenient for borrowers with good or bad credit, while home equity loans and HELOCs can be convenient for homeowners who’ve built up home equity.

We’ve narrowed down jewelry and engagement ring financing options from some of the best personal loan and home equity lenders.

Lender	Product	Rates (APR)
LightStream	Personal loan	9.49% – 22.74%
Upgrade	Personal loan	8.49% – 35.99%
Figure	HELOC	7.80% – 17.20%
Spring EQ	Home equity loan & HELOC	Starting at 9.50%

LightStream: Best for excellent credit

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LendEDU rating: 4.8 out of 5

• Rate Beat Program 
• Minimum loan amount of $5,000
• No fees whatsoever

LightStream is an excellent option for consumers with FICO credit scores of 740 and up looking to finance an expensive jewelry purchase or engagement ring without the burden of fees or prepayment penalties. 

LightStream’s ability to disburse funds—potentially on the same day the loan is approved—is a significant advantage for buyers eager to make timely purchases. We’re fans of LightStream’s Rate Beat program, which promises to offer a lower interest rate than competitors under comparable loan terms. 

This policy can benefit those planning substantial investments in jewelry who want to secure the best possible financing terms. However, LightStream does not provide a soft credit check for prequalification, which means potential borrowers must be prepared for a hard inquiry that may affect their credit score.

Upgrade: Best for fair credit

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LendEDU rating: 4.9 out of 5

• Accepts borrowers with fair credit
• Provides free credit monitoring
• Offers hardship plans

Upgrade is our top lender for those with FICO credit scores of 580 to 669 looking to finance jewelry or engagement rings. The company offers a high degree of flexibility, allowing borrowers to choose their monthly payment and loan term length. 

Upgrade permits adjustments to payment dates during repayment, which can help align loan obligations with personal cash flow. The ability to check rates without affecting one’s credit score makes Upgrade accessible for borrowers wary of potential impacts on their credit. 

The platform’s quick funding—often available within one day of application approval—is another key feature for individuals needing prompt financing.

Although Upgrade charges an origination fee, its transparent structure and the option for joint applications make it a viable choice for couples or individuals planning significant purchases who might not have stellar credit.

Pros and cons of personal loans for engagement rings

Just like every financial tool out there, there are advantages and disadvantages to using a personal loan to finance a jewelry or engagement ring purchase.

Pros

• Unsecured loan

  This means you won’t have to use anything as collateral to borrow the money. So there’s no risk of losing your home because of late or missed payments.

• Quick approval

  Most lenders will provide a decision about your personal loan application within minutes.

• Receive funds as a lump sum

  Upon approval, most lenders will deposit your funds in your bank account within a day or two, depending on your bank’s processing times.

• Fixed interest rates

  Most personal loans have fixed rates, meaning the interest rate you get when approved for the loan will never change.

Cons

• Higher monthly payments

  A repayment schedule over a few years rather than 15 or 30 years means higher monthly payments that could strain your budget.

• Strict eligibility requirements

  Many personal loans are automatically out of reach to borrowers who don’t have long financial history or good credit.

• Rates are influenced by your credit score

  For those that do offer personal loans to borrowers with less than stellar credit, the interest rates you’ll pay can be pretty high.

• Hidden fees and penalties

  Some lenders charge high origination fees and prepayment penalties on their personal loans. Plenty don’t, but you’ll want to look closely for this.

Using home equity for jewelry loans

Lenders, such as banks, offer home equity loans, which allow you to borrow against your equity—meaning your home is valued at more than the mortgage balance. 

A HELOC is revolving credit with variable interest rates, similar to a credit card, except it’s secured by the equity in your home. If you borrowed $8,000 out of a $30,000 limit, you’d have $22,000 left to borrow. By paying back $2,000, you’re limit increases to $24,000.

We determined Figure and Spring EQ offer the best options for using home equity to fund a jewelry or engagement ring purchase.

Figure: Best overall HELOC

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LendEDU rating: 4.9 out of 5

• Competitive fixed rates
• Quick and hassle-free process
• Must borrow 100% of your credit line (minus fees) at closing

Figure is the best overall lender for a HELOC, which might benefit those looking to leverage home equity to finance high-value jewelry or engagement rings. 

Unlike traditional lenders, Figure offers fixed interest rates and requires borrowers to draw 100% of the approved credit line at closing, with options to redraw as they repay the balance. This feature provides substantial upfront capital with the flexibility to manage funds according to individual financial needs.

The lack of a requirement for an in-person appraisal simplifies the application process, making it faster and less invasive. Figure’s quick access to funds, often within five days, ensures borrowers can secure their jewelry purchases without significant delays. 

However, potential borrowers should be aware of the origination fee and the geographical restrictions that may affect their eligibility.

Spring EQ: Best multi-product application

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LendEDU rating: 4.6 out of 5

• Access up to 95% of home equity
• Single application for both home equity products
• $1,395 origination fee

Spring EQ offers a robust solution for those seeking to finance jewelry or engagement rings through home equity. The company allows customers to apply simultaneously for a home equity loan and a HELOC. This dual approach can maximize financial flexibility, allowing borrowers to choose the product that best fits their immediate and long-term financial situations.

Accessing up to 95% of one’s home equity is a significant benefit for homeowners with substantial equity, enabling them to finance large purchases, such as high-end jewelry. 

While Spring EQ’s funding timeline is longer on average (21 days) and comes with a substantial origination fee, the amount of equity accessible and the streamlined application process make it an attractive option for many borrowers. However, consider the availability restrictions in certain states when planning financing options.

Pros and cons of using home equity to finance jewelry 

Before you officially decide about your engagement ring financing option, consider both the benefits and risks of home equity loans for this purpose.

Pros

• Low rates

  Home equity loans boast some of the lowest rates you’ll find. The average credit card, for example, charges 17% interest.

• Large sum of cash available

  Depending on your home’s equity, you could get enough to finance a ring, a wedding, and a honeymoon.

• Generous repayment terms

  A repayment schedule stretched out over several years, similar to your mortgage, can be very convenient for your budget.

• Improve your credit score

  Consistent, on-time payments can help boost your credit score. (Expect the opposite if you fall behind on payments.)

Cons

• Secured loan

  If you can’t make your payments, you risk losing your home.

• Slow approval process

  Submitting an appraisal, a copy of your pay stubs, bank statements, and other documentation could take at least a couple of weeks.

• Costly fees

  Some home equity loans charge fees, such as application or appraisal fees, that can easily add up.

How to choose the best loan for jewelry financing

If you’re not sure which option is better for financing your engagement ring, answering the following questions first might help you decide:

1. How much do you need?

Depending on your or your significant other’s taste, the cost of the engagement ring could range from a couple hundred dollars to thousands of dollars. 

Although many lenders offer large amounts, borrowers typically take out a relatively small personal loan—the average personal loan is less than $8,000.

Meanwhile, home equity loans and HELOCs can help fund a much larger purchase. However, most home equity lenders require you to have at least 15% to 20% equity in your home.

2. How soon do you need it?

Thinking of surprising your significant other this weekend? You can usually get your hands on a personal loan within a couple of days. Home equity loans usually take two weeks to two months, while a HELOC usually takes two to six weeks.

3. How much can you afford?

What you have left over at the end of the month matters, particularly if you’re thinking of adding another bill to your plate. Your loan’s monthly payment must fit into your budget.

Personal loans come with fixed payments, whereas a home equity loan or HELOC can come with varying monthly payments since they may issue variable interest rates.

4. How long do you need to pay it off?

If you plan on paying off your loan within the next few years, a personal loan may be a better option for you. Repayment terms for personal loans typically range between one and five years. Home equity loans may give you up to 30 years.

Ask the expert

Michael Menninger

CFP®

When loans are stretched over longer periods, the amount of interest paid increases, possibly exceeding the borrowed amount. Further, financing a purchase is essentially saying you can’t afford to purchase in the first place. I recommend considering a lower-priced ring at the onset and upgrading the ring later.

How to get the best rates on a jewelry loan

Most likely, you’ll get the best rates by having a good credit score. If your credit score isn’t much to write home about, a consistent employment history and monthly income can also get you favorable rates. 

Don’t forget to shop around and take advantage of special promotions. Many lenders offer a discount if you meet certain requirements.

How to apply for a jewelry loan

Before you apply for a personal loan, home equity loan, or HELOC, check your credit score so you get an idea of what to expect. It’s also a good idea to get prequalified with several lenders. This process can usually be done online in minutes and won’t affect your credit score.

Once you’re prequalified, you can either apply online or at a bank or credit union nearby. Completing the application may take some time since you’ll have to provide some personal information, including pay stubs.

The lender will send your funds directly to your bank account once you’re approved and accepted, which you can use to purchase the ring or jewelry of your choosing.

Alternatives for financing an engagement ring

There are some other options for financing your engagement ring or jewelry purchase that are worth exploring. Some provide noteworthy advantages that could ultimately save you money.

Credit card

Credit cards are often the go-to for purchases because they’re convenient. Some jewelry stores partner with credit card companies, usually offering a 0% interest promotion. Simply complete a quick application and authorize a credit check to get the card in-store and purchase the ring.

If you use a credit card to finance your engagement ring purchase, set up a plan to pay off the balance within the introductory period. The last thing you want is a lifetime of sky-high interest and unconquerable debt.

Buy now, pay later (BNPL)

Many jewelry retailers offer BNPL options to their customers. You’d simply pay a percentage of the engagement ring cost upfront and the rest in monthly installments over a certain time frame.

Typically, you won’t be charged interest. If you miss a payment, however, the penalties could be costly to your pocketbook and credit.

Cash

Paying cash for an engagement ring means no monthly payments, no interest, and no debt. It’s not practical for everyone, especially those wanting to seize the moment. But if you’re taking some time before moving, try to set aside a specific amount each time you get paid. 

If you plan on getting the engagement ring in less than two years, for instance, by setting aside $300 a month, you’d save more than $5,000 in 18 months.

Remember that when it comes down to the things that matter most, money and material things are just … things. Don’t give in to unnecessary pressure to impress others by purchasing an engagement ring that’s way out of your budget. 

Your significant other and the life you’re building together are important. If that means buying a temporary, less expensive ring until you can afford the right one, that’s okay. Or if that means popping the question with a sentimental ring your grandmother gave you as a family heirloom, that’s cool, too.

Ask the expert

Michael Menninger

CFP®

When you’re buying an engagement ring, do your planning to identify the best option to pay for it. If a loan is the best option, you could start by charging it to a credit card. This essentially ‘floats’ the money for 30+ days interest-free and may allow you to get points or cash back from the credit card company.  When the bill comes due, pay what you can and use your loan or a HELOC to pay off the credit card balance.

Recap: Best loans for jewelry financing 

Lender	Rates (APR)
LightStream	9.49% – 22.74%
Upgrade	8.49% – 35.99%
Figure	7.80% – 17.20%
Spring EQ	Starting at 9.50%