Updated
May 09, 2023 If you’re buying jewelry for a special occasion, such as getting engaged, it can be tempting to buy an expensive piece. Typically, you’re best off paying upfront to avoid the cost of borrowing money, but there are options for jewelry financing.
Financing a jewelry purchase gives you the chance to space out the payments, meaning you pay less initially and a manageable amount each month. You’ll pay interest, which increases the total cost, but the flexibility of monthly payments may be worth it.
If you’re considering financing an engagement ring or other piece of jewelry, these are some of the ways that you can do so.
- Use a personal loan
- See if the jewelry store offers to finance
- Use a 0% APR credit card
- Use a home equity loan or HELOC
1) Use a personal loan
Personal loans are highly flexible loans that you can use for almost any purchase. That includes purchasing a piece of jewelry. Personal loans typically require good credit, but there are some loans for people with poor credit.
Personal loans usually let you borrow anywhere from $1,000 to $35,000 or more with repayment terms in the range of two to 12 years. There are many banks and specialized personal lenders, each with different loan offers, so you can find one that fits your needs.
Pros
- Many lenders offer personal loans, giving you lots of options
- Rates are typically lower than credit card rates
- Flexible loan amounts and repayment terms
Cons
- Typically require a good credit score to get a good deal
- Higher rates than some loans, especially secured loans
Here are two lenders offering personal loans for jewelry or engagement ring financing.
 |  | |
|---|---|---|
| Rates (APR) | 5.95% – 19.99%* with AutoPay | 7.99% – 35.97% |
| Loan Amounts | $5,000 – $100,000 | $1,000 – $35,000 |
| Repayment Terms | 24 – 84 months** | 36 or 60 months |
| Minimum Credit Score | 660 | 620 |
Check out our guide to the best personal loans and the best personal loans for bad credit.
2) See if the jewelry store offers to finance
Many jewelers offer in-house financing, much like many car dealerships let you get auto financing while on the lot. Working with the jeweler from which you purchase can make the process very easy, but it isn’t without its drawbacks.
When you finance through your jeweler make sure to read the fine print. You might get a great rate, even 0% APR, only to find that the rate spikes to a huge amount after the end of the promotional period. That will leave you with an expensive loan unless you repay the debt quickly.
Pros
- Easy to get as part of the shopping process
Cons
- Might not offer the best rates
- Promotional APR could disappear, leaving you with a high-interest loan
3) Use a 0% APR credit card
Credit cards are a popular way to pay for things, but they’re usually not great for long-term financing. If you carry a balance from month to month, most cards will charge a huge interest rate, making the loan incredibly expensive.
However, some credit cards offer 0% APR introductory periods. You can get anywhere from 12 to 20 months of interest-free financing by signing up for one of these cards. Just make sure you pay the card off before the period expires, or you’ll wind up with high-interest debt.
Pros
- Zero-interest financing
- You can continue using the card after you finish paying off the jewelry debt
- Some 0% APR cards offer rewards
Cons
- Huge interest rates if you don’t pay the debt before the promotion expires
- Usually requires a good credit score
- No guarantee that your credit limit will be sufficient to cover the cost of the jewelry
For more information, you can read our guide about buying an engagement ring with a credit card and our guide to the best 0% APR credit cards.
4) Use a home equity loan or HELOC
Home equity loans and home equity lines of credit (HELOCs) let you tap into your home’s value to borrow money. They are some of the least expensive loans on the market, but they have a major downside—if you fail to make your payments, the lender can foreclose on your home.
Because of the high risk of using a HELOC or home equity loan to buy jewelry, you should only use this payment option if you are confident in your ability to repay the loan. Even then, you should consider the potential consequences of defaulting on the loan.
Pros
- Very low interest rates
- Can be easier to qualify for than unsecured loans
- You can use the HELOC for other things beyond purchasing jewelry
Cons
- Incredibly risky if you don’t make your payments
- May have more paperwork or closing costs than other loan types
Here are two lenders that offer home equity loans for financing jewelry.
 |  | |
|---|---|---|
| Product | Home equity loan | HELOC |
| Rates (APR) | As low as 5.205% | 4.99% – 13.25% |
| Loan Amounts | $20,000 – $500,000 | $15,000 – $150,000 |
| Eligibility Criteria | Minimum credit score: 640 Maximum loan-to-value: 90% | Minimum credit score: 620 Maximum loan-to-value: 80% |
If you’re considering a HELOC or a home equity loan, check out our guides to the best HELOCs and the best home equity loans.
Example costs of financing an engagement ring
Borrowing money to buy an engagement ring may be tempting, but it might not be the best idea. Remember that borrowing money costs money. You have to pay interest on the loan and there can be other fees, such as origination fees or early repayment fees. Paying in cash tends to be cheaper.
If you want to know how much it will cost to finance a jewelry purchase, our personal loan calculator can help you figure out the interest costs, minimum monthly payments, and other fees for your loan.
Consider this example.
You expect to spend $6,200 on an engagement ring, which is a bit more than the average cost for an engagement ring in the United States. You get a three-year loan at an interest rate of 7% APR
You’ll pay $191 per month for thirty-six months. In total, you’ll pay $6,892 over the life of the loan, of which $682 is in interest. You increase the cost of the ring by a bit more than 10% by financing it compared to paying upfront.
What to consider when financing jewelry or an engagement ring
When you finance jewelry or apply for a loan of any kind, there are a few things that you should consider before accepting the loan.
- Interest rates. How much will you pay in interest over the life of the loan? Is that worth the flexibility of paying over time?
- Origination and other fees. These fees add a flat cost to the loan. Are they worth it?
- Monthly payments. You’ll add a new monthly payment to your budget. Do you have space in your budget to make the payment?
- Secured vs. unsecured loan. Secured loans are usually cheaper, but put an asset, like your home at risk. Is the savings worth the additional risk?
- Loan term. Longer terms mean lower monthly payments but higher total costs. Shorter terms lead to the opposite. How do you balance the competing factors of monthly cost and total cost of the loan?
- Jewelry insurance. If you’re spending so much on jewelry, is it worth the cost to insure it?
- Down payment. You can reduce your loan’s cost by making a partial payment in cash when you buy the jewelry. Is the upfront cost worth the savings?
*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.
**Payment example: Monthly payments for a $10,000 loan at 5.95% APR with a term of three years would result in 36 monthly payments of $303.99.