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 you can apply for

    Rates last updated July 21st, 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 Minimum Credit Score Max. Loan Amount APR Requirements
    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.
    Lending Club Personal Loan
    Borrow up to $40,000 with rates from 5.99% to 35.89% APR 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.
    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 18 years or older.
    Check your rate — without affecting your credit score — before applying for this unsecured personal loan.
    From 9.95% (fixed)
    Examples: You must have good to excellent credit, provide proof of a steady income and be a US resident who is at least 18 years old (19 years old in Alabama).
    Payoff Personal Loans
    Pay down your debt with a fixed APR and one monthly payment.
    From 8 to 25% (fixed)
    You must have a FICO score of 660 or higher, at least 3 years of credit history and a debt-to-income ratio of no more than 50%.
    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.
    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
    OneMain Financial Personal Loans
    Get a personal or auto loan with a quick and easy application and dedicated customer support.
    From 12.99% (fixed)
    Eligibility for a loan is determined by your financial history, credit history, income and expenses, and whether or not you have ever filed for bankruptcy.

    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

    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.

    How much do wedding rings cost?

    A survey conducted by American Express in 2014 found that US couples cited $2,311 as the average appropriate price tag for an engagement ring. This was slightly lower than 2013, where $2,410 was found to be the appropriate price. A quarter of people in the 2014 survey believed the appropriate amount to spend was between $2,000 and $4,999, while 16% believed you should spend $5,000 or more.

    You should buy a ring you can afford, because starting your married life with debt you can’t repay doesn’t make any kind of sense. If you feel that spending at least two months of your salary is the way to go while you’re already in debt, you might want to rethink your plan.

    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.
    A personal loan could take your wedding from “meh” to memorable

    Common questions about financing an engagement ring

    Some lenders charge a fee if you wish to repay your loan ahead of time. This is known as a prepayment penalty.

    Some non-traditional lenders will let you use assets such as engagement rings as security for loans. Make sure you consider the APR of these loans as they tend to be more expensive than more traditional loan options as they are targeted at bad credit borrowers.

    In-store finance deals usually come with a requirement to apply for a retail credit card, or a high interest rate once the interest-free finance period comes to a close. Make sure you know the terms of the offer before you apply.

    Generally, jewelry owners will return the ring within reason. You should familiarize yourself with the store’s return policy, but you’ll usually find that you can return unused rings within 30 to 90 days depending on the store.

    Image: Shutterstock

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    US Personal Loans Offers

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    Lending Club Personal Loan

    Borrow up to $40,000 with rates from 5.99% to 35.89% APR based on your credit score.

    Prosper Personal Loan

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

    Upstart Personal Loans

    This newer service looks beyond your credit score to match you with accredited investors for low-rate personal loans.

    Get matched with providers from a large network of banks, peer-to-peer marketplaces and direct lenders.