Put a ring on your forever promise.
Make your proposal unforgettable with engagement ring loans.
What is an engagement ring loan?
Proposals are often as beautiful and memorable as the wedding itself. A perfect proposal goes best with a picture perfect engagement ring. But, paying for a wedding ring can sometimes be as tricky as choosing the right one.
Engagement ring loans enable you to split the cost of your ring into affordable monthly instalments, giving you more breathing space for repayments. These loans are essentially personal loans that make it easier for you to bear the expense of your engagement ring.
With LoanTube, you can borrow from £1,000 to £35,000 over 12-84 months, enough to cover the cost of your engagement ring upfront. Compare real rate engagement ring loans from multiple lenders with LoanTube and give your partner the gift of love.
How does an engagement ring loan work?
Personal loans for engagement rings are typically unsecured, meaning that you won’t have to put up collateral to secure this loan. Although, the success of your application depends heavily on your credit score and income.
Your credit score helps lenders assess your credit history and repayment ability. So, a higher credit score corroborates your responsible credit behaviour in the past, reducing the lender’s risk proposition. Thus, applicants with a high credit score are more likely to qualify for a low-interest personal loan.
Lenders usually assess your credibility through a hard credit check. If you make it through the credit check and fulfil the lender’s prerequisites, they will likely sanction your loan. After completing a series of contractual formalities, the lender will directly transfer the funds into your bank account.
You can then use the funds to pay for the engagement ring upfront. Several jewellers offer discounted rates on engagement rings if you pay upfront, which could easily save you a few hundred pounds.
What are the pros and cons of borrowing a personal loan for an engagement ring?
Benefits of a personal loan
Drawbacks of a personal loan
Are there other ways to finance an engagement ring?
Engagement ring loans
Use Your Savings
Interest-Free Credit Cards
Collateral-free personal loans to help you finance destination wedding expenses effortlessly. Pay for all your expenses up front with a wedding loan.
You can set aside some savings into a savings pot to buy the perfect engagement ring for your partner.
Low or zero interest promotional offers on jewellery. It would help if you had an excellent credit score to qualify for this option.
High-cost credit cards with a zero-interest promotional period. However, you may need a stellar credit score to qualify for these cards.
Personalised loan terms offer greater flexibility and more breathing room with affordable repayments. You can avail of a low-interest loan with a good credit score.
Reaching your targeted savings goal can take a while. So you may have to wait until you’ve saved up enough to cover the expense of an engagement ring.
The zero-interest promotional period usually lasts for about 6-18 months.
Limited interest-free period (usually 6-18 months).
Small and affordable monthly repayments and low-interest loans.
It may not be wise to use your hard-earned money to pay for such expenses. Exhausting your savings could shake up your finances right before you start a new phase of your life.
Once the interest-free window expires, you may have to pay a much higher interest rate towards the credit (often more than 28%). Thus, you should opt for jewellery financing if you’re confident of your ability to repay the credit within the promotional term.
High-interest rates after the expiry of the interest-free period
Repayment failure could severely damage your credit score.
You will have to buy rings that fit the allocated budget.
Failing to repay your credit could accrue you high interest. Additionally, missing payments can severely damage your credit score.
If you fail to repay the balance on time, you may accrue a huge interest on the credit card along with credit score damage.
How to choose the best engagement ring financing option?
What to consider before borrowing an engagement ring loan?
An engagement ring is only the first step that leads to a series of events that is your wedding, so how you choose to finance it is crucial. Here are some things worth considering before borrowing a personal loan for your engagement ring:
Is this a suitable loan amount for me?
Analyse your budget to determine how much you can spend on the engagement ring. Using this information, you can calculate the loan amount suitable to cover the cost of the ring. However, it is important to borrow only the amount you can afford to repay.
Will I be able to commit to the loan term?
Taking out an engagement ring loan for a longer term requires a great deal of perseverance. The monthly payments may be lower with a long-term loan, but you may accrue more interest. Determine a loan term in line with your current and upcoming financial position.
What happens if I miss a repayment?
You could lose up to 150 points from your credit score if you miss a payment. Defaulting on the loan would not only cost you 350 points off your credit score but could lead to a County Court Judgment (CCJ). CCCJs negatively impact your credit file for up to six years, reducing your chances of obtaining credit in the future.
Do I need a contingency plan?
Having a contingency plan will ensure timely payments, no matter the circumstances. Before taking out a personal loan for your engagement ring, you should consider your options carefully.
Love is all about little gestures – and thus, people often splurge when planning to pop the question to their significant other. As of 2020, the average cost of an engagement ring in the UK was $1865!
With personal loans, you can easily borrow between £1,000 and £35,000 for a period of 12-84 months, allowing you to spread the cost of your engagement ring into small and affordable monthly installments. Since personal loans are unsecured, you won’t need to pledge any collateral to secure one, making them a highly accessible financing option for homeowners and tenants. Thus, if you’re looking for credit with fixed interest rates and more manageable repayments, you could opt for an unsecured personal loan to finance your engagement ring.
Follow some superb tips to save a few hundred pounds on your engagement ring:
Usually, people only propose when they know their partner will reciprocate their feelings. Still, there’s a chance you and your partner may not be on the same page. However, suppose you’ve purchased the ring on credit. In that case, you will have to repay the credit as per the mutually-agreed repayment period.
Your jeweller may or may not issue a refund for the ring. Besides, diamonds don’t usually appreciate. So, it would be best to pop the question after due consideration.
You can borrow up to £35,000 over 12-84 months with LoanTube.
LoanTube does not charge any upfront fees on loans – compare personal loans from multiple lenders at zero upfront fee.
Warning: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK
Credit subject to status & affordability assessment by Lenders.
LoanTube is a credit broker and not a lender.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.