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Loans for an engagement ring
Can’t wait to pop the question, but worried about how you’ll afford a ring? This guide looks at the best ways to finance an engagement ring purchase.
Engagement rings can cost hundreds, if not thousands, of pounds. So, if you’re looking to spread the cost of this expensive purchase, we take a look at some of the options available.
Can you get a loan for an engagement ring?
Lenders don’t offer specific financial products for engagement ring purchases (there’s no such product as an “engagement ring loan”), but there are several different ways of borrowing that could fit the bill.
One option is to take out a personal loan, which enables you to borrow a fixed amount of money and pay it back with interest over a set time. Alternatively, you could consider using a 0% credit card, in-store finance, an overdraft or even borrowing from friends or family.
Find lenders that can approve youHow can you finance an engagement ring purchase?
As there are many options available, it is worth weighing up the pros and cons of all of them to help you make the right decision.
Personal loan
Personal loans typically let you borrow between £1,000 and £15,000, with some lenders offering loans of up to £25,000. You then repay this amount in monthly instalments with interest charged on top over a term of between 1 and 7 years.
Pros
- Monthly repayments are fixed, making it easier to budget. You’ll know exactly when you’ll have paid off the loan.
- Interest rates can be competitive if you have a high credit score.
- You can usually borrow a larger amount than a credit card or overdraft.
- Making your repayments on time and in full will benefit your credit score.
Cons
- Interest rates are generally higher for smaller borrowing amounts, so personal loans may only be suitable if you’re buying a particularly expensive ring.
- If your credit score is low, you might not get accepted or you’ll pay a higher rate.
- Payments are not flexible, so if for some reason you want to pay more or less one month, it’s not as easy as it would be with a credit card.
Credit card
Paying for an engagement ring with a credit card that offers 0% on purchases for a set number of months can work out to be the most cost-effective option (potentially free, in fact). You simply buy the ring and then pay for it over a series of monthly instalments. Providing you pay off the debt before the 0% deal ends, you won’t pay any interest.
Pros
- 0% interest credit cards can help you spread the cost of your purchase cheaply.
- Monthly payments are flexible, so you can choose how much to pay off each month.
- Some credit cards also allow you to earn cashback or rewards points on your purchases.
- Thanks to Section 75 of the Consumer Credit Act, purchases of over £100 and up to £30,000 on a credit card are protected in the event something goes wrong.
- Making your repayments on time and in full will benefit your credit score.
Cons
- Credit limits are personalised and may not stretch far enough to purchase your ideal ring.
- You’ll need a good credit score to qualify for the most competitive credit cards.
- If you have a 0% purchase deal, you’ll need to ensure you clear your balance before the interest-free deal ends.
- If you miss a payment, you risk losing your 0% deal and damaging your credit score.
Overdraft
If you have an overdraft on your bank account, you could also consider using this to cover the cost of your engagement ring purchase, particularly if it offers an interest-free period or low rate.
Pros
- Payments are flexible, and there is no set time by which you need to have paid off your debt.
- Some bank accounts offer interest-free overdrafts.
- Overdrafts can be quick to arrange.
- Using an overdraft sensibly and paying it off can benefit your credit score.
Cons
- Most overdrafts charge high rates of interest, and rates can be variable.
- Your overdraft limit may not be sufficient to cover the ring’s cost.
- Your bank has the right to ask for repayment of your overdraft at any time.
- With no set repayment schedule, your debt could drag on indefinitely, pushing up the overall cost of borrowing.
In-store finance
Many jewellers offer you the ability to pay for your engagement ring over an extended period, sometimes with a 0% interest period. You can then spread the cost of the ring over several payments.
Pros
- Payments may be interest-free for a set time.
- You’ll usually only need to put down a small initial deposit of around 10%.
Cons
- Most finance deals have a minimum spend.
- Typically, the longer your repayment period, the higher the rate of interest charged.
- Penalty fees for missed payments can be high.
Guarantor loan
If you’ve got poor credit, a guarantor loan offers the opportunity to borrow with the help of a guarantor. This could be a friend or family member who guarantees to meet your payments if you can’t.
Pros
- Can give you access to credit if you’re struggling to borrow money elsewhere due to your credit score.
- If you repay your loan on time, your credit score can improve.
- You may be able to borrow more money compared to standard loans.
- Making your repayments on time and in full will benefit your credit score.
Cons
- Interest rates are much higher than standard personal loans.
- Your relationship with your guarantor could be at risk if you can’t keep up with your repayments.
- Guarantor loans take longer to arrange.
- There are fewer and fewer lenders offering these loans.
Buy now, pay later services
Buy now, pay later (BNPL) services, such as Klarna, Clearpay and LayBuy, enable you to shop online (or in-store in some cases) and buy now but pay for your goods later. Usually, payments are split into 3 or 4 manageable amounts, and most services offer 0% interest.
Pros
- Enables you to spread the cost of your purchase into more manageable chunks.
- Monthly payments are usually interest-free.
- It’s quick and convenient.
Cons
- Relatively short repayment periods – typically 3 months at most.
- If you’re late making a payment, interest and fees charged can be high.
- If you fail to pay on time or miss monthly repayments, your credit score could go down.
- Can encourage you to spend more than you can afford.
Borrowing from friends or family
You may also be able to borrow money from a friend or family member. This can allow you to borrow the exact amount you need and can offer a more flexible repayment schedule.
Pros
- Payments can be more flexible.
- Interest rates are typically lower than other finance options.
- Repayment periods may be longer than other forms of credit.
Cons
- Your relationship could be ruined if you can’t repay the amount borrowed.
- There’s limited legal protection if something goes wrong.
What’s the best way to finance an engagement ring purchase?
This really depends on your personal circumstances. Ideally, you want to look for the cheapest option that you qualify for.
Using a 0% purchase credit card is generally a good option if you can get accepted. You can spread the cost of your purchase over several months, and providing you clear your balance before the 0% deal ends, you won’t pay any interest.
Can I get engagement ring finance with bad credit?
Yes, you can – although your options will be more limited. You may also have to accept a higher rate of interest and lower credit limits.
Before applying for any form of finance, it’s sensible to take steps to improve your credit score, such as paying your bills on time, checking you’re registered on the electoral roll and correcting any mistakes on your credit report.
It’s also worth using an eligibility checker wherever possible. Many credit card and loan providers offer eligibility checkers, which only use a “soft search”. This means the search won’t leave a mark on your credit file and won’t affect your credit score. Eligibility checkers will give you a clearer idea of which credit cards or loans you’re most likely to get accepted for so you can make a full application more confidently.
In comparison, if you make an application without using an eligibility checker, lenders will run a “hard search”, and a mark will be left on your credit file for other lenders to see. Too many searches in a short time can suggest you’re desperate for credit, and lenders may be more reluctant to let you borrow.
Finder offers a free personal loan eligibility checker and credit card eligibility checker without harming your credit score.
Can I get engagement ring finance with no credit check?
Most providers will run a credit check before you apply for a credit card or loan or even if you apply for a current account with an overdraft.
However, some jewellers offer in-store credit with no background credit checks, and if you use a BNPL service, some lenders will only run a “soft search”, so other lenders won’t see you’ve applied for that credit. That said, more and more BNPL providers are now using hard checks.
Practical tips for financing an engagement ring
There are a number of ways to ensure you’re getting the best deal when financing an engagement ring. Tips include:
- Haggle. There is no harm in negotiating a discount or better deal with the retailer on your chosen ring – after all, if you don’t ask, you don’t get.
- Speak to family. If there’s a family heirloom lying around, you may be able to use this instead of paying for a new ring!
- Pay for what you can upfront. The more you can pay upfront, the less you’ll need to borrow on finance.
- Get to know your credit score. Use a free online service to check your credit score so that you know how likely you are to get accepted for credit.
- Improve your credit score. If your credit score is low, take steps to improve it, such as paying bills on time and checking you’re on the electoral roll. This will give you a greater chance of getting accepted for a more competitive finance deal.
- Use an eligibility checker. This will give you an indication of which credit cards or loans you’re most likely to get accepted for.
- Try to choose short-term finance. Whether you’re taking out a loan or using in-store finance, it’s usually better to opt for a shorter term if you can. Your monthly repayments will be higher, but you’ll repay your debt more quickly and pay less interest.
- Clear your debt before any 0% deal ends. If you’re using a 0% purchase credit card or 0% finance, make sure you pay off the amount owed in full before the 0% deal ends so you don’t get hit with interest and fees.
How do engagement ring loans work?
Specific engagement ring loans don’t exist, but there are a number of different borrowing options available if you want to buy an engagement ring on credit. For example, a personal loan lets you borrow a lump sum of cash that you repay in fixed monthly instalments, with interest, over a set term. A credit card, on the other hand, offers more flexible monthly repayments, and you might benefit from an interest-free period. Then, there are finance deals offered by jewellers themselves.
But overall, whichever option you choose, you’ll be borrowing money that must be repaid over time, sometimes with added interest.
Should you take out a loan for an engagement ring?
Ultimately, the gesture of proposing should be what matters, not the value of the ring. When buying an engagement ring, it’s best to only ever spend what you can afford. This means resisting the temptation to take out a huge loan to finance your ring purchase when you know you’ll struggle to repay it. This can lead to serious debt problems that simply won’t be worth it.
Bottom line
If you want to get a loan to buy an engagement ring, it’s crucial to weigh up your options carefully and consider which one might work best for you. Only ever borrow what you can afford to repay, and make sure you’re happy with the repayment terms and any interest you’ll need to pay.
Frequently asked questions
Who is most likely to be researching engagement ring loans?
Finder data suggests that men aged 25-34 are most likely to be researching this topic.
| Response | Male (%) | Female (%) |
|---|---|---|
| 55-64 | 8.42% | |
| 45-54 | 9.47% | 4.91% |
| 35-44 | 17.89% | 6.32% |
| 25-34 | 21.40% | 13.68% |
| 18-24 | 13.33% | 4.56% |
Source: Finder sample of 285 visitors using demographics data from Google Analytics
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
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