Loans for an engagement ring

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.

How 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.

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.

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.

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.

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.

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.

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.

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

• How much should you spend on an engagement ring?

  Tradition dictates that an engagement ring should cost the equivalent of 3 months’ salary. However, we suspect jewellers may have been started this rumour! In reality, the average spend is much less.

  According to a report by Hatton Garden jeweller, Diamonds Factory, people spend an average of £1,865 on an engagement ring in the UK, lower than the average 3-month salary of £7,650.

• What do I need to apply for finance?

  Depending on the type of finance, you’ll usually need to supply details such as your name, address and date of birth, as well as proof of ID, such as a passport or driving licence, and proof of address, such as a utility bill. You may also need to provide current income and employment details.

• Is finance the best way to pay for a ring?

  If you have enough saved up, it usually makes better financial sense to use your savings to pay for the ring. However, if your savings don’t stretch far enough, or your savings would be completely wiped out by the purchase, be sure to look for interest-free finance options where possible. Always do your best to repay your debt as quickly as you can.

• What happens if they say no?

  Whilst no one proposes with the thought they’d be declined, unfortunately, it sometimes happens. If you have bought your ring using in-store finance, contact the jewellers to find out their return policy.

  However, if you’ve bought the ring using a personal loan, things get a bit trickier as you may face extra charges if you repay your loan too early. You may wish to contact your provider and enquire if they can make an exception.

• What about a short term (payday) loan?

  Would your partner really want you to take out a payday loan for their engagement ring? Hopefully not. Although these can be fast and easy to get accepted for, they don’t have a good reputation, because they’re a horribly expensive way to borrow. It’s also possible that future prospective lenders (e.g. a mortgage provider) will be put off if they see a short-term loan in your credit record.

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.

To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.

Written by

Rachel Wait

Writer

Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio