loan for engagement ring

Compare loans for engagement rings

Learn how to choose the right loan for buying an engagement ring.

The old adage holds that a wedding ring should cost three months salary. But how can you come up with that money? The cost of an average wedding ring is over $5,500, according to a 2013 study by, while the XO Group Inc. Engagement & Jewelry Survey from 2011 found that 12% of buyers spent in excess of $8,000 for their engagement ring.

Picking the right ring while sticking to your budget can be difficult, especially if you haven’t saved up much in advance. If you are considering financing, it’s important to consider all of your options.

Some jewelry stores offer in-store financing. However, many of these offers require you to open a new retail credit card which can affect your debt-to-credit ratio and by extension your credit score. These offers can also come with a high interest rate once the promotional interest period ends.

Alternatively, you can consider getting a personal loan to buy an engagement ring. Here’s what you need to know about how those loans work.

Prosper Personal Loan

Prosper Personal Loans

You could borrow up to $35,000 for a variety of purposes, with rates starting from 5.99%.

  • Recommended Credit Score: 640 or higher
  • Minimum Loan Amount: $2,000
  • Maximum Loan Amount: $35,000
  • Loan Term: 3 or 5 years
  • Turnaround Time: 1-3 business days
  • Simple online application process
  • No prepayment penalties

    How does financing for an engagement ring work?

    An engagement ring loan is essentially a personal loan. Loans through banks, credit unions or peer-to-peer lenders will be unsecured and your rate will largely depend on your credit score.

    The application time will depend on the lender you apply with, but can take from as little as one business day to a few weeks. You’ll need to make monthly repayments over the loan term, which differs between lenders.

    Personal loans to help you pay for that rock

    Rates last updated November 24th, 2017

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    Unfortunately, none of the personal loan providers offer loans for that credit score. If you are in urgent need of a small loan, you might want to consider a short term loan.
    Name Product Product Description Min. Credit Score Max. Loan Amount APR Requirements
    Laurel Road Personal Loans
    Get a personal loan with no application or origination fees and a rate discount for autopay.
    From 5.5% (fixed)
    Must be a US citizen or permanent resident with a valid I-551 card
    Even Financial Personal Loans
    Get connected to the best loan offers instantly from top online consumer lenders.
    From 4.99% (fixed)
    Must have a minimum credit score of 580+. Must be 18+ years old and be an American citizen or permanent resident.
    Prosper Personal Loan
    Borrow only what you need for debt consolidation, home improvements, special occasions and more — with APRs based on your credit score.
    From 5.99% (fixed)
    Must be 18+ years old, an American citizen or US permanent resident and have a 640+ credit score.
    SoFi Personal Loan Fixed Rate (with Autopay)
    Borrow up to $100,000 with a competitive APR and no fees.
    Good to excellent credit
    From 5.49% (fixed)
    You must be a U.S. citizen or permanent resident, and 18 years or older.
    LendingPoint Personal Loans
    Get a personal loan with reasonable rates even if you have a fair credit score in the 600s.
    From 15.49% (fixed)
    Must have a fair credit score of 600 or better and verifiable income. Must live in a state where LendingPoint services.
    LendingClub Personal Loan
    A peer-to-peer lender offering fair rates based on your credit score.
    From 5.99% (fixed)
    You must be over 18 years of age, a permanent resident of the US or an American citizen and have a steady source of income.

    Compare up to 4 providers

    Features to consider when comparing engagement ring loans

    • Interest rate. The interest rate you have to pay will significantly impact the total cost of the loan, so it’s important to compare your options and choose a competitive, low interest loan is important. Factors that affect interest rate include your creditworthiness, the amount you wish to borrow and the desired loan term, as well as the lender you select. An easy way to compare the cost of engagement ring loans is to look at the annual percentage rates (APR) for the loan, which includes interest as well as all applicable fees and charges.
    • Fees. Fees add to the cost of a loan. Go through the loan contract to find out how much you might have to pay in application fees, loan disbursement fees, late payment fees and prepayment penalties.
    • Loan amount. The amount you can borrow differs between lenders. Generally, maximum loan amounts are between $25,000 and $40,000, but some lenders offer unsecured loans up to $100,000.
    • Loan term. Getting a longer loan term can be tempting, as the monthly payments will be lower. However, the longer you take to repay your engagement ring loan, the more you’ll pay in interest. Ideally, you should repay the loan as soon as possible.
    • Eligibility criteria. Some providers of engagement ring loans require applicants to have good creditworthiness. Some others provide loans to people with less-than-perfect credit history, provided they have steady jobs.
    • Unsecured. Personal loans will be unsecured, so you won’t be risking your ring should you have trouble repaying your loan. However, there are some lenders available that offer specialised loans, which will use your engagement loan as collateral. These loans are largely targeted towards bad credit borrowers.

    engagement ring finance

    How much should I spend on an engagement ring?

    Old school wisdom says you should spend two month’s salary on an engagement ring, but that’s no longer a hard-and-fast rule. There are two things you need to consider when figuring out your engagement ring budget: Your partner’s preferences and your financial situation. Your partner might have a specific style in mind and would prefer a less-expensive version of that than an extremely expensive ring in the wrong cut. Try to suss out their preferences before making a big purchase.

    Once you know what you’re looking for, then you’re ready to start thinking about financing. Get a sense of the price range of that style by shopping around. It might be more than you expect: Most Americans expect to spend between $1,000 and $5,000 according to a recent survey by EBates, though the average price of an engagement has risen to $5,000 in recent years.

    Before you buy an expensive ring on credit, establish how long you’ll take to repay the debt. Account for other expenses that you’ll encounter going forward, including your eventual wedding plans. Review how a large purchase would affect your existing liabilities.

    How much do wedding rings cost?

    If your partner says yes, you aren’t done with ring shopping yet: You still need to get wedding bands. The average wedding ring for women costs around $1,500 and $550 for men. The cost largely depends on what type of metal you go with: White gold is generally less expensive than platinum.Some women also like to have their wedding band fitted with diamonds or to match their engagement rings, which can easily make prices jump. Make sure to factor in these costs when considering wedding expenses.
    A personal loan could take your wedding from “meh” to memorable

    What are the benefits and drawbacks of an engagement ring loan?


    • Get the ring you want. If you don’t have money to pay for the engagement ring you wish to buy, you can think about getting a loan. This way, you pay for the ring when you want, and repay the money you owe in installments.
    • Quick and easy process. Getting a typical engagement ring loan is quick and easy. In some cases, you can get your hands on the approved funds by the following business day.
    • Interest-free offers. If you choose to go the in-store financing way, you can benefit from interest-free offers. In this case, you don’t have to pay any interest towards the purchase for a predetermined time period, which can be 12 to 24 months. If you repay the entire amount before the promotional period expires, you won’t pay any interest.


    • The burden of debt. If you borrow more than your means, repaying the loan can become a challenge. Not making timely repayments will have an adverse effect on your credit score.

    Did you know?

    The holiday season about more than just presents and eggnog: The most popular time of year to pop the question is between Thanksgiving and Valentine’s Day. More than half of engagements take place in December. The most popular day of the year to get engaged? That’s right: It’s Christmas Day.

    Common questions about financing an engagement ring

    Image: Shutterstock

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    US Personal Loans Offers

    Learn about our information service
    Even Financial Personal Loans

    Get connected to the best loan offers instantly from top online consumer lenders.

    Prosper Personal Loan

    Borrow only what you need for debt consolidation, home improvements, special occasions and more — with APRs based on your credit score.

    LendingClub Personal Loan

    A peer-to-peer lender offering fair rates based on your credit score.

    SoFi Personal Loan Fixed Rate (with Autopay)

    Borrow up to $100,000 with a competitive APR and no fees.