A Quick Guide to Jewelry Financing

Jewelry Financing: Is It Right for You?

Jewelry — especially grand pieces like an engagement ring — can be expensive. Jewelry financing can help you cover the cost. However, not everyone is eligible for jewelry financing, and financing jewelry might not always be a great choice, even if you qualify.

What is Jewelry Financing? How to Finance Jewelry

If you want to finance a jewelry purchase like an engagement ring, you have a few jewelry finance options. All of these options will allow you to buy your chosen piece of jewelry now, and then make a minimum payment on a regular basis, until the purchase is paid off, plus any accrued interest.

1. Credit Cards

One of the most straightforward ways to finance jewelry, using a credit card — whether it’s a jewelry store’s credit card or any other credit card — allows you to buy your jewelry now, and then pay for it over time.

Of course, if you don’t already have a credit card, you’ll need to apply for one and see if you meet the provider’s credit approval requirements. Even if you do have an existing credit card, you may want to establish a new, separate credit plan for this purchase.

However you go about it, before you successfully acquire a new credit card, make sure to read the credit card agreement carefully. Ideally, you’d choose a card with a zero-interest promotional period, and then make the necessary monthly payments to pay off the purchase before you’ve accrued interest charges.

2. Personal Loans

If you don’t want to sign up for a new credit card account online, you might consider applying for a personal loan. Personal loans typically come with a fixed interest rate, and you usually have to pay the loan back within a maximum of five years from your purchase date.

Before taking out a personal loan, look at the minimum payments required, minimum interest charge and other factors, to determine whether or not this option is best for you.

3. Jewelry Store Finance

But do jewelry stores finance? Yes! If you purchase a piece of jewelry from a large, well-established jewelry store, they will very likely offer financing for jewelry.

In some cases, you may even be able to find jewelry store promotions that come with better financing and more flexible payment plans (if you want to take advantage of these, just make sure to note the promotional plan expiration date and if there’s any minimum purchase required during the promotional period).

Some jewelry stores offer a lease-to-own financing option but don’t think of this as a lease agreement you might sign for a car or property. You’ll own the jewelry after the final lease payment rather than giving the item back at the end of your lease.

Before signing such an agreement, make sure to thoroughly review the lease purchase agreement provided, and examine the leasing costs associated with acquiring ownership of your desired piece of jewelry.

What if None of the Above Are an Option?

If you want to finance jewelry bad credit can stand in your way. Bad credit jewelry financing options aren’t always favorable and can leave you with poor payment options. If your credit history doesn’t allow you to purchase jewelry with financing in one of the above ways, you can consider asking for a loan from a family member or friend, or dipping into retirement savings or investments, in order to finance your jewelry purchase.

Is Jewelry Financing Worth It?

Some pros and cons come with financing jewelry.

Pros of Jewelry Financing

The pros of jewelry financing include the following:

• The ability to buy a piece of jewelry for a special occasion without the need to wait
• The ability to pay for your jewelry in equal installmentsvia an equal payment plan that may be more palatable for your budget
• You could find a promotion that allows you to finance jewelry with little interest, so long as you meet a separate minimum purchase requirementfor the promotional plan balance

Cons of Jewelry Financing

Then, of course, there are the potential downsides, including:

• After fees and interest, you may end up paying far more for a piece than the retailer’s cash price
• You have to make your payments on time, within the billing period, or risk penalties
• As you shop for a financing option, running multiple credit reportscould damage your credit
• It can be challenging to avoid accrued interest charges
• Credit card financing can come with a variable purchase APR, leading to more significant costs later

What to Consider Before Financing Jewelry

So, can you finance jewelry? Yes — but should you finance jewelry?

Before deciding on any jewelry payment option, think about the long-term financial impacts. You could potentially be paying for this jewelry purchase for years into the future. If you’re purchasing, for example, an engagement ring, that could negatively impact future purchases — such as those needed for a wedding.

Jewelry Financing FAQs

Is financing jewelry a good idea?

It all depends on your personal finances. You may find that a low-interest payment plan makes sense for your personal situation.

How does jewelry store financing work?

Jewelry store financing works very similarly to any other type of financing. The jewelry store is essentially loaning you the money to buy your chosen piece of jewelry and you’re paying back the loan, plus interest, over time.

Can you set up a payment plan for jewelry?

Yes! You can set up a payment plan for jewelry through the seller, but you can also purchase jewelry with a personal loan or credit card, and then pay back the purchase that way.

Which jewelry stores offer financing?

Just about all major jewelry store brands — either online or brick-and-mortar — offer financing.

What kind of credit score do you need to finance jewelry?

Typically, you’ll need a credit score that’s at least 600 or higher to finance jewelry.

Once You’ve Made Your Jewelry Investment, Protect It

Suppose you finance a notable piece of jewelry and spend months or years paying for it. In that case, you’ll want to protect that substantial investment in the long term. Specialized jewelry insurance ensures that a precious piece of jewelry can be replaced or repaired in the event of damage or loss without another significant financial investment.

Learn more and get a quote now.

Also Check:

How to Clean Turquoise Jewelry at Home
Diamonds Direct Ring Insurance
Kay Jewelers Ring Insurance

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