This blog article gives you a clear explanation of the different types of loans available for the purchase of an engagement ring, the advantages and disadvantages of borrowing money from friends and family to cover the costs, how to shop around for better rates when borrowing money, and how you can avoid getting scammed by unscrupulous lenders.
Types of loans available
When looking for a loan to finance your engagement ring, you have a number of financing options available. There are so many that it can be difficult to choose the right one for your needs and budget. One option is to get a personal loan from a bank or credit union to finance your purchase. Another option is a line of credit, which offers flexible terms.
Even if you don’t plan to buy the engagement ring outright, it’s still wise to consider getting a loan for the purchase. This is because most people who buy an engagement ring will often go back and forth between making payments on their loan and buying the ring. Personal loans are also available in a variety of interest rates which range from 4% to 9%.
Shopping around for better rates
If you’re thinking about buying an engagement ring, but are concerned about the cost, you’re not alone. It’s tricky to shop for an engagement ring and know what to expect. However, there are ways for you to actually save a decent amount of money on your purchase. One way is by shopping around for better rates. Many people have found success by doing this and saving hundreds of dollars on their purchase.
What is a personal loan? A personal loan is a loan that spans from $1,000 to $50,000 and is designed for your big day. Whether you are planning to buy an engagement ring or create the next great fashion trend, it is important to make sure you get the best rate possible.
Scams to avoid
The best advice is to never give anyone cash for an engagement ring. There is no such thing as a “free” gift, and you should never trade your engagement ring for anything else. If someone tries to get you to do this, they are trying to take advantage of your emotions and trust. Even if the person promises that they will let you know how much money they took off the top of your ring, never hand over any money until your ring has been appraised by a reputable jeweller.
To avoid falling prey to a scam, don’t send your engagement ring in the mail or wire it anywhere. If you have a family member or friend you trust who lives out of town, see if they would be willing to meet with the loan officer in person. You should also make sure that anyone who is getting money from their relatives, friends, or on their behalf has their own bank account where they can deposit the funds.
Conclusion
Engagement rings are one of the most meaningful purchases that women make. They’re also incredibly expensive, which can put a significant dent in your wallet. If you don’t want to get into debt or wait years for the ring to pay off, consider applying for a personal loan with our partner Cash Genie.
When you’re in love with an engagement ring, you know that it’s important to carefully select the perfect diamond. You want something incredibly beautiful, of course, but also durable and eternal. Luckily for you, personal loans for engagement rings are now available at Lending Tree!