Can I Finance an Engagement Ring with Bad Credit or No Down Payment? (ANSWERED)

bad credit engagement ring no down payment
Photo courtesy Susan Solinski via flickr. Used under a CC BY 2.0 license.

Diamonds are expensive, and many guys want easy options to finance an engagement ring with bad credit. Some local jewelers and online jewelers may help finance monthly payments with you. They may require a down payment or have rent to own engagement ring option. But is buying a diamond ring on credit a good idea?

Probably not — at least in my opinion. I’ll provide some example costs of financing and I’ll also list conservative options for paying for an engagement wedding band.

Sure you got bad credit?

Most people think they have bad or poor credit but when their FICO score is pulled it really isn’t that bad.

A lot of places will finance folks with just average credit. Try shopping around at jewelers and find out if they offer any financing.

You’ll ding your credit score a bit when they pull your credit, but you are bound to find one that will finance you.

Crunching wedding band financing numbers for fun

If you shop at Kays and apply for financing, they currently offer a 12 month plan. You don’t get charged interest if you pay it off in 12 months.

The caveats: Pay late or not in full, you’ll be charged at the APR of 24.99 percent interest from the date of purchase. Ouch: a $1500 ring would cost an extra $374.85 in interest payments for year 1. Remember, that’s only the first year.

If a person could pay it off, these 0 percent interest deals are good. But if a person gets socked with interest, the deal is not so good.

Personal loans, credit unions, or credit card payments will hold similar interest payments depending on how long it takes to pay it back, so think twice before financing your own engagement ring with a credit card.

Better options for the frugal: Split the cost together and pay cash

People get married because they are in love and not because their partner expects a 5 carat diamond.

A diamond band is only a physical piece that we attach meaning to. Although it is an asset that holds value, it does not appreciate.

Does it matter that the guy pays for it? Nah. If I was broke, in love with a girl, and getting married; I would not be offended splitting the cost together or for a woman paying for the engagement ring.

Paying for engagement ring in cash: That’s how I’d do it!

Consider getting an inexpensive wedding band with cash on hand that you can afford, then at the 5 year anniversary when finances and credit scores are figured out, get diamonds.

Saving a little extra money and paying cash is a much better alternative than credit.

Save while working at a jewelry store …

Consider this: Retailers offer discounts. Why not work part-time at a jewelry store, earn a few extra bucks, and get that nice engagement ring with no credit check financing. You may be able to get the jewelry at a discounted employee rate.

A few years ago, I interviewed for a sales job a popular chain jewelry store. One of the perks of working there was a large discount. If I recall correctly, it was the cost of the jewelry and 15 percent.

So, if I wanted to buy a $2K diamond, it would have cost about $500-$600 dollars. That’s a nice alternative to financing.

Pawn shop, local jeweler’s used selection

Pawn shops are a haven for treasures (and junk). Many people fall on tough times and may sell items of value for extra cash.

If you have stuff you want to pawn, that could net you cash to finance diamond engagement rings (Remember, cash is instant credit approval).

You might be able to find a nice wedding band at a pawn shop at a discounted rate. The same holds true with a local jeweler.

The jeweler may have stock that was purchased and never resold. It doesn’t hurt to ask.

If all else fails …

If you are really broke and can’t afford even $100 band, see if your mom or your grandmother have an old wedding band. They may be able to offer it to you.

I hope this provides a few ideas if you are considering an engagement ring financing bad credit.