The Easiest Way to Pay for an Engagement Ring
From buying a ring on finance to saving, we look at ways you can purchase a diamond ring.
Proposing and buying an engagement ring is a super exciting but daunting task. From choosing the right style of engagement ring, to picking the perfect diamond or gemstone and getting the correct ring size, a lot of research and planning goes into buying an engagement ring.
When you start thinking about getting engaged, it's not long before you consider the price. In 2018, research from Protect Your Bubble had shown that the average spend of an engagement ring sat at around £1,483. With no hard and fast rules on how much you should spend on an engagement ring, knowing where to start can be overwhelming.
As soon as you and your beau decide that you're ready to get engaged, how much you spend on your engagement ring and the wedding is a personal decision. The chances are, you'll spend a fair bit of money on an engagement ring, and there are a few ways in which you can pay for them. However, one thing's for sure - you should always stay within your means, and make sure you're in a financial position to do so. We've outlined three easy ways in which you can pay for an engagement ring.
Save up and pay outright
While it may take longer, saving up for an engagement ring and paying for it outright is a great option for those who don't have a good credit rating, or don't want to take out a loan or go on finance. However, for some people, buying an engagement ring outright means that they're handing over a large chunk of money and will no longer have that cash safety net behind them, which may come in handy during an emergency.
Ways to save for an engagement ring
Set up a direct debit to a savings account
For those who use online banking, you can easily set up an automatic transfer from your main account, to either a savings account or another bank account. You could choose to do one monthly transfer, or smaller amounts each week. This is a really simple, effortless way to save a good chunk of money.
A lot of mobile banking apps offer round-up pots when you make purchases on card. For example, if your weekly shop comes to £20.66, they'll round-up the purchase to £20.70 and put the 4p in a separate pot. Over time, this builds up, and you'll end up with a nice pot of money.
The £5 method
Every time you get a £5 note, whether it's change from shopping, or money that your friend owes you, pop it in a piggy bank, and over time you'll end up with a good amount of money. You could even do this with £1 or £2 coins.
Buy an engagement ring on finance
If you don't want to pay for an engagement ring outright, another great option is to buy an engagement ring on finance through the jeweller providing your engagement ring. Using a loan to help make a major purchase is a great way to up your credit score and spread the cost out over a period of time that works for you. Alongside this, applying for finance at with your jewellers is much easier than applying for a credit card or loan, waiting for approval and then waiting for the card or funds. At Diamond Heaven, we offer four different finance options with our rates of APR varying from 0% to 14.90%, and you can leave as little as a 20% to a 50% deposit. You can find out more about our finance options here.
Put the engagement ring on a credit card
Another way to finance an engagement ring is to do some research and find a credit card with a 0% introductory APR on purchases for a certain amount of time. The average APR for a UK credit card in 2019 sits at 17.71% (creditcards.com), but the better your credit score, the lower the interest rates.
Whether you choose to buy an engagement ring outright, put it on finance or apply for a credit card, you should do your research and think about what works for you. You should consider your credit rating, as this will impact your interest rate - the better your credit score, the lower the interest rate. If you have a poor credit score, you'll end up paying more for the ring.
If you would like to apply for finance or to find out more, call us on 0121 200 1300, or get in touch online.