If you’re ready to add to your collection or looking to buy an investment piece, knowing your financing options might snag you a better rate. Because jewelry is a luxury item, financing it is best for people who are employed, have good credit and know they can make their repayments on time.
Financing jewelry works like financing anything else. You apply for a loan or repayment plan and, if approved, use the funds to purchase your jewelry. Afterwards, you start the payback process, which typically requires fixed monthly payments for six weeks up to a few years.
Keep in mind that the longer your loan’s repayment period, the more interest you’ll pay. So, it’s best to choose the shortest term with the highest monthly payments you can afford.
When choosing a method of financing, always opt for the lowest interest rate you can find. Some lenders offer 0% promotional periods, which is ideal if you can pay off your loan before the promo period ends.
Here are the top five options for financing jewelry:
The average cost of a wedding ring is about $5,500 according to a study by TheKnot. However, that’s not a hard and fast rule. The study found that nearly half of respondents spent between $1,000 to $4,000 on an engagement ring, and 9% of ring shoppers spent under $1,000. In any case, compare several financing options for engagement rings before you pop the question to get the best deal.
The Finder Score crunches 3+ types of short-term loans across 65+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best short-term loans for all credit types, you can see how each short-term loan stacks up against other short-term loans with the same borrower type, rate type and repayment type.
Interest, fees and the repayment term are the three main factors that impact the overall cost of financing a piece of jewelry:
Tiffany and Kay are two retailers that both offer 0% APR promotional period financing, but you’ll get stuck with a higher interest rate if you’re unable to pay off your balance by the end of the promo period.
When choosing a jewelry loan, compare the following features to ensure you’re getting the best deal:
Some financing companies offer small loans or rent-to-own agreements without checking your credit. While this may seem like a convenient option, be cautious: The interest and fees these companies charge can double or even triple the cost of the piece of jewelry you’re buying.
If this is the only type of financing you can qualify for, you might want to hold off and take steps to build your credit and save up instead.
You may be able to get a loan if your credit score is below 580 – although you might be turned down for some types of loans. Your best bet is to work with an online lender that specializes in bad to fair credit loans such as Freedom Plus, Avant or OneMain Financial.
However, you’ll need to show that you have regular income to get approved. You’ll also likely have to pay an origination fee, which typically runs anywhere from 1% to 10% of the total loan amount.
Financing jewelry is a relatively straightforward process. If you’re ready to splash down some cash for a beautiful piece, compare the top personal loan options or other jewelry financing options to find the best deal.
Need help paying for a vacation? Compare top personal loans that can be used to cover travel expenses.
What’s the smartest way to borrow as a veteran? Explore your best options here.
It is possible for non US citizens or resident aliens to get a personal loan, including a mortgage, in the US. Here’s how.
Need quick cash? See how BMG Money helps employees handle emergencies without a credit check.
Legit lenders don’t offer guaranteed approval loans, but some options come pretty close if you can meet the lenient requirements to qualify.
Compare cash advance apps or personal loans as alternatives to allotment loans like Kashable.
Explore loans like Viva Finance with eligibility flexibility and higher loan amounts.
Tally is a debt management app offering a revolving line of credit to consolidate credit card debt.
Want to avoid hidden fees? Here are the best personal loans with no origination fees, plus how to save on your next loan.
Prosper is a peer-to-peer lender offering loans of up to $35,000 at competitive rates with simple terms. Learn about similar online lenders.