How To Finance Your Engagement Ring in 2025

These days, most couples are forgoing the traditional “three-month salary” rule for ring buying — instead, focus on your budget and long-term financial goals before selecting an engagement ring.

There are a handful of ways to finance your engagement ring purchase to make it more manageable, such as applying for a payment plan with a jeweler, using a credit card or taking out a buy now, pay later or personal loan.

Engagement ring statistics

Budgeting for engagement rings

You might have heard the outdated rule of thumb that an engagement ring should be worth approximately three months of salary. Diamond jeweler De Beers popularized the idea of tying a ring’s price to your monthly earnings in its 1930s marketing campaign.

While an engagement ring doesn’t have to add up to that much money, you should still be prepared to spend at least a grand on the purchase. The average ring cost $5,200 in 2024, and according to The Knot, nearly two-thirds of couples spent less than $6,000.

Ring setting, metal type and diamond or gemstone details — like clarity and size — will all impact the price of your engagement ring. Because of the high cost, there are a few options you can explore if you need to finance the purchase of your ring.

Engagement ring financing options

There are many different ways to finance a major purchase like an engagement ring. Popular options include in-store financing, credit cards and personal loans. No matter which form of financing you choose, it’s important to have a plan to repay the debt and avoid financial trouble.

1. Jewelry store financing

Jewelry store financing is best for convenience.

If you want a convenient financing source and don’t have strong credit, in-store financing may be worth a look. Many major jewelry retailers offer in-house financing to help customers pay for an engagement ring. These take the form of an installment loan — you make incremental monthly payments toward the loan balance, plus interest.

Generally, jewelry financing offers more flexible credit requirements than borrowing a traditional bank loan. Terms and financing requirements, like a minimum purchase amount, vary by retailer. But this flexibility and convenience comes at a price — interest rates tend to be higher with in-house financing, increasing your total cost of borrowing.

2. Credit card

Credit card financing is best for strategic buyers.

Using a credit card to finance an engagement ring can be a strategic option for responsible borrowers. It is best for individuals who have strong credit and can qualify for a low or no-interest period or plan to repay the ring purchase by the next billing statement.

For example, let’s say you have strong credit and qualify for a promotional 18-month 0 percent APR rewards credit card. If you can pay off your balance before the promo period ends, you’ll have avoided paying interest while also earning rewards points or miles.

If your credit doesn’t qualify for a promotional rate offer, be aware that credit card interest can be steep. When using a credit card without a no-interest promotion, calculate whether you have the budget to pay off the ring within the next billing cycle.

3. Personal loan

Personal loans are best for rate shopping.

Like jeweler financing, a personal loan is a type of installment loan. However, unlike jeweler financing, since the lender is a third party, you must get approved for the loan before shopping for your ideal ring. Buyers with good credit who want to shop around for a competitive interest rate may want to take advantage of a personal loan.

Eligibility for an unsecured personal loan varies between lenders, which includes credit requirements for approval. The advantage is comparing rates from multiple lenders to find the lowest option — even if you have less-than-perfect credit. That said, if you’d like to secure the best offer, make sure to boost your credit score by lowering high-interest debt, among other things, before you apply.

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4. Buy now, pay later loan

BNPL loans are best for online shoppers.

Buy now, pay later (BNPL) loans, also called “point-of-sale financing,” have gained popularity in recent years. BNPL services, like Affirm, Klarna and Afterpay, are often integrated into the checkout process when buying an engagement ring online. If you’re shopping online and want a seamless financing experience with the potential to pay no interest for a short repayment term, BNPL may be a good choice.

Generally, you pay a percentage of the total cost upfront. Then, you make equal payments over a short period (typically four to six weeks) to repay the remaining balance. Depending on the repayment term you choose or your credit, you might be offered a BNPL loan at no interest.

Bottom line

You don’t need to empty your savings to pop the big question. If you don’t have the cash on hand to purchase an engagement ring, many jewelers offer in-house financing, or you can explore BNPL or personal loan options. If you have excellent credit, you can use a credit card or open a new one with a promotional APR and pay it off before the 0 percent interest period ends.

Be sure to set a ring budget before you start shopping and only borrow as much as you can comfortably afford to repay. That way, you can keep your finances on track and protect your credit health.

Frequently asked questions about engagement ring financing

• Does financing an engagement ring hurt your credit?
  

  Applying for any type of financing can lower your credit score for a few months. However, you can shop for lenders that offer prequalification to preview your rates without impacting your credit. Once you apply and undergo a hard credit check, you will see a small drop in your score.

• How much money should you spend on a wedding ring?
  

  Wedding bands usually cost less than engagement rings. According to Brides, they start at around $700 for the most popular types — but there is no perfect number when it comes to a wedding ring price. How much you should spend will be based on what you can comfortably afford without compromising other priorities, such as saving money for a house.

• How much should you spend on an engagement ring?
  

  The average American spends about $5,000 to $10,000 on their engagement ring. But that’s an average — some people spend much more, and some spend much less. Your budget and other financial goals should drive the conversation about engagement ring cost.

• Can you finance an engagement ring with bad credit?
  

  It is possible to finance an engagement ring with bad credit, and some jewelers offer layaway plans. Another option worth exploring is peer-to-peer lending, which often has more lenient or flexible credit requirements. If you can’t obtain affordable financing, it is best to select a less expensive ring or wait and save up for the purchase.