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Engagement rings aren’t cheap — the average cost is $5,500, according to The Knot. If you’re looking to buy a ring and can’t wait to save up the money first, engagement ring loans could help you cover the cost.

Here’s what you should know about engagement ring loans:

4 options to pay for an engagement ring

There are a few types of engagement ring loans available. Ultimately, the right one for you will depend on your needs and individual circumstances.

Here are four options to consider:

Learn More: Where to Get a Personal loan

Personal loan

Personal loans could be a cost-effective choice to pay an engagement ring. They often come with lower interest rates than other financing options and are available from several types of lenders, including banks, credit unions, and online lenders.

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Plus, if you’re approved for a personal loan, you could have your loan funded within a week or less — or even by the same or next business day, depending on the lender.

Here are a few other pros and cons to keep in mind:

Pros

• Might come with lower interest rates: Depending on your credit, you might qualify for a much lower interest rate compared to other financing options.
• Fixed monthly payments: Unlike credit cards or other revolving types of credit, personal loans come with fixed payments as well as a specific payoff date. This lessens the temptation to spend more than you have to.

Cons

• Fewer options for poor or fair credit: You generally need good to excellent credit to qualify for a personal loan. While some lenders provide personal loans for bad credit, these typically come with higher interest rates compared to the rates offered to borrowers with good credit.
• Funding might take longer: The time to fund for a personal loan is typically one week or less — though some lenders offer same- or next-day funding if you’re approved. This is longer than you might have to wait for other types of financing.

Check Out: How to Get a Personal loan With Fair Credit

In-store financing

Some jewelry stores offer in-store financing offers, generally through a credit card or installment loan.

If you’re thinking about financing an engagement ring through a store, here are a few pros and cons to keep in mind:

Pros

• Might qualify for 0% APR: Some stores offer 0% APR financing. If you qualify, you could avoid paying interest on your purchase.
• Convenient: Applying for in-house financing could be a faster process compared to applying for other types of credit, such as personal loans. This is because you can generally complete your application at the same time that you’re shopping for your ring.

Cons

• Could charge deferred interest: If you get a 0% APR offer, be sure to read the fine print, as the offer might be only for a limited time. If you don’t fully repay your balance by a certain date, you could be retroactively charged for all of the interest.
• Might be expensive: In-store financing can come with high interest rates, which might make it more costly than a personal loan or other options.

Learn More: How to Get a $5,000 Personal loan Fast

Buy now, pay later loans

Another potential way to cover the cost of an engagement ring is through a “buy now, pay later” lender — such as Affirm, Afterpay, Klarna, or PayPal.

Pros

• Easy to use: These types of lenders are often integrated right into the shopping cart when you check out at certain partner retailers, making them a fast financing option.
• Can be used for other purchases: Buy now, pay later options can be used at a wide variety of stores, which means you can use it to cover more expenses than just an engagement ring. Even if a store doesn’t offer a buy now, pay later option during checkout, you might still be able to find a roundabout way to use it — for example, with Affirm, you can get a one-time-use virtual card to make your purchase.

Cons

• Can be easy to get into debt: A lot of people opt for buy now, pay later lenders because it’s so easy. However, this ease can lull you into not shopping around for loan rates — meaning you could be stuck with a pricier loan than you might get with another lender.
• Might be expensive: Buy now, pay later lenders can be a simple way to pay off a purchase over a few weeks or months. However, if you miss payments, you could face late fees or returned payment charges, depending on the lender. You might also have to pay deferred interest charges if you don’t repay your balance by a certain date.

Credible makes it easy to compare personal loan lenders. You can see your prequalified rates from our partner lenders below in two minutes.

Check Out: Personal Loans for Weddings

Credit cards

Credit cards are another way that some people pay for their engagement rings.

Pros

• Might come with 0% APR: Some credit cards come with 0% APR introductory periods. If you repay your balance before this period ends, you could avoid paying interest. However, keep in mind that if you don’t pay off the card in time, you could be stuck with hefty interest charges.
• Could help you build credit: If you make on-time payments and keep your credit card balances low, your credit score might improve. This could help you qualify for more credit in the future, such as if you decide to buy a car or house.

Cons

• Can charge high interest rates: Credit cards often come with higher interest rates than other types of credit. If you can’t afford to repay your balance in a timely manner, these interest charges can add up fast.
• Might be difficult to pay off: If you only make the minimum payment on your card each month, it could be hard to repay your balance and get out of credit card debt.

Learn More: Personal loan vs. Credit Card

How long are engagement ring loans?

The repayment term for an engagement ring loan will depend on the type of loan you choose. Here are a few repayment terms you might expect:

• Personal loans for engagement rings generally come with fixed terms ranging from one to seven years (depending on the lender).
• Buy now, pay later lenders like Affirm generally offer short terms of one year or less.
• Credit cards are a revolving type of credit, so they don’t come with fixed repayment terms.

No matter which type of loan you choose, it’s important to consider how much the loan will cost you over time. This way, you can prepare for any added expenses. You can estimate how much you’ll pay for a loan using our personal loan calculator below.

Check Out: Where to Get a $10,000 Personal loan

How to get the best personal loan rate

Here are a few strategies that could help you secure a low interest rate on a personal loan for an engagement ring:

• Build your credit. If you have poor or fair credit, it could be a good idea to spend some time improving your credit before applying for a personal loan to qualify for a better rate. A few ways to build your credit include making on-time payments, keeping credit balances low, and only applying for new credit when necessary.
• Make sure your credit report has no errors. If there are errors on your credit report, they could be dragging down your credit score. You can use a site like AnnualCreditReport.com to check your credit reports for free. If you find any mistakes, dispute them with the appropriate credit bureaus.
• Compare rates with as many lenders as you can. The more personal loan lenders you check with, the better your chances of finding a good loan rate. Most lenders only perform a soft credit pull when you check your rates, which will have no impact on your credit score.
• Check for discounts. Some lenders offer rate discounts if you sign up for autopay or have other accounts with them. Check with your lender to see what discounts might be available to you.

Before taking out an engagement ring loan, remember to shop around and compare as many lenders as possible. This way, you can find the right loan for you — and hopefully start your married life without added financial stress.

With Credible, you can check your prequalified rates on personal loans with multiple lenders in two minutes.

Keep Reading: Personal Loans for Good or Excellent Credit

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