Now that you have met the perfect partner, you have proposed, and they have said yes. It means that the wedding planning has begun. One of the most important expenses that are found in all weddings is the purchase of the wedding ring. Like the engagement ring, the wedding ring holds the significance of a much higher authority. It is a symbol of a solidified union between two people.
Two people now being one. Both partners are responsible for purchasing the other’s wedding ring. Like the engagement ring, it can become quite steep financially. However, this financial steep is not enough to prevent having the best symbol of your undying love for your partner displayed daily on their finger.
Sometimes, it is not realized until it is too late how much financial obligation is required for this wedding ring. Last minute expense costs and deposits can forego wedding savings. It then leaves little to nothing for the wedding ring in which you are responsible for purchasing. This can leave you in quite the panic. However, there is no need to worry.
Because of this, some put their wedding rings on credit or get a loan for a wedding ring in order to provide their partner with the ring they deserve. Below you will find all you need to know about a wedding ring loan. From what it is and where you can find one, to determining if this is even a financially responsible decision for you at this time.
What is a Wedding Ring Loan and How to Get Him
With the need for personal loans to cover a variety of expenses and obligations, many engaged persons are considering the importance of the wedding ring. They are then using it as a reason for loans. A wedding ring loan is essentially a small personal loan that is used specifically to purchase a wedding ring. Loans for wedding rings often range from $2600 to $50,000. Most of them capping around ten thousand dollars in the loan amount. Because you have already spent a third of your salary in an engagement ring and budgeted your savings for a wedding, it is important to not overspend on a wedding ring loan.
These loans are often short in their terms. Indeed they are some of the one or two year payoff personal loans that are made available to customers. Since they are used for a single expense, they are relatively easy to repay. It makes the monthly payment affordable. Before applying for one of these loans, it is a good idea to not obtain a secured loan for your wedding ring purchase. A secured loan has a property requirement that is needed in order to obtain the loan. Since wedding ring financing is not an emergency or a wedding ring requirement, you should not put the additional property on the line to make a wedding ring loan approval.
Where Can I Get A Wedding Ring Loan?
A wedding ring loan can be found in several places for those who are seeking to finance their wedding ring. From more traditional options to contemporary credit lines. Obtaining a loan for a wedding ring is much easier today than it was in the past.
- Credit Union
- Major Jewelry Chain credit card
- Online Financial Lender
Bank or Credit Union
For those who like traditional lending options, the bank or local credit union is available for a wedding ring loan. These banks will require a minimum loan amount of around one thousand dollars, and max out a loan and several thousand more beyond that. This loan is available to those with the best credit. Those who are eligible for very low- interest rates based upon their credit score.
Major Jewelry Chain Credit Card
Sometimes you find the ring first before the loan. For many of the larger chain jewelry stores, they specifically understand the situation you are in. That’s why many offer an option to use a credit card to buy a wedding ring. This way, you have the ability to get the ring you want and make the monthly payments you can afford. The difference between this loan and the bank or credit union loans, however, is the interest rate. This is the difference that can be seen when you refer to the interest on the credit card.
Online Financial Lender
Having a choice in lenders is the preference of others who are seeking out a wedding ring loan. When seeking out the online lenders, applicants have the option to submit a pre-approval for the loan. Then they can review loan options based upon terms, interest, and loan amount. From there, applicants are able to make a choice on the loan offer that fits their financial needs and formally applies. Having these options available allow the applicant to take control of their finances. This way they have more of a negotiating handle on their loan.
What Are The Application Requirements For A Wedding Ring Loan?
When you apply for these loans, these lenders will have your credit score front and center throughout your application. This credit score refers to a combination of your credit history, payment history, credit inquiries, outstanding credit debt, and your credit activity. There are three ranges in which these scores are reviewed:
- Bad Credit
- Fair Credit
- Good Credit
Bad Credit Score
Bad credit refers to the smaller of credit scores, 649 and below. If the applicant with this credit score is approved, they are looking at some of the higher interest rates available from these lenders. Bad credit scores often prompt more wedding ring loan denials than any other credit group. In fact, they may not even be eligible for the banks or credit unions due to their credit score and a minimum credit requirement is necessary before applying for a wedding ring loan.
Fair Credit Score
Fair credit refers to the 650-750 score range, where the credit is building and working to become good credit. These applicants are often allowed to obtain these wedding ring loan options, but they do not have the most competitive interest rates available. Also, they are often only approved for the loan amount in which they seek, not having additional funds to upgrade the ring if they so choose.
Good Credit Score
For those with good credit at 751 and above, they have access to the best interest rates and have the option to obtain the loan from their lender of choice. Lenders enjoy it when these customers need a loan because they have the smallest risk, and they are able to offer wedding ring loans and credit loans at a higher amount requested. This also leaves negotiating room for you as the applicant because you have this desired score and you can negotiate your terms and interest rate to fit your financial obligations.
Does your credit report reflect any outstanding debt that you should have taken care of by now? If so, you should consider having that debt satisfied before taking out a wedding ring loan. This debt can include small debts such as outstanding medical bills, utility bills, or anything that can be paid off in a matter of two or three pay periods. This debt will clog up your credit and increase your debt-to-income ratio, making your eligibility for the loan flawed.
Another outstanding debt that can impact your debt-to-income ratio is any car notes on your credit, student loan payments, and credit card balances. If your credit card balances are not below thirty percent, then you should consider paying them down quickly. Any time your credit card balances exceed thirty or forty percent, you can expect your credit score to be negatively impacted based upon this information. It appears to lenders that you are not as responsible with debt as you would like to appear, and they find you at a higher risk. By eliminating outstanding debt, you are decreasing your debt-to-income ratio and you are increasing your chances at a wedding ring loan.
How Can I Budget To Ensure I Afford A Wedding Ring Loan?
Before you take on a wedding ring loan, it is essential for the financial stability that you take on solidifying a monthly budget to ensure that a wedding ring loan is right for you. You should review your debt-to-income ratio yourself by comparing your income for the month against your outgoing bills and debts that you are responsible for on a monthly basis.
Based on this ratio, you should also consider how much income you need for monthly living expenses that are not reflected on your credit reports such as groceries, gas, and other expenses. When you add that to your debt-to-income ratio, you are left with an amount that can determine what your maximum wedding ring loan payment can be monthly. It is a wise choice to not max out this number in loan payment, as you should still be using some of this money for savings. Make sure you cover the following expenses when determining your monthly obligations:
- Car Notes
- Credit Card Payments
- Living Expenses
If you have all of these monthly obligations, you should consider minimizing them as much as possible in order to lower your debt-to-income if you require a loan for a wedding ring.
Is A Wedding Ring Loan Right For Me?
Now you have reviewed a wedding ring loan and the requirements that are needed to obtain such a loan. It’s always better to find ways to save on your wedding expenses. You now have to make a decision if the wedding ring loan is right for you and your wedding needs. Taking out a loan for a ring that your partner will display to the world of your love is no small expense. Which is why wedding ring financing options are growing. However, you must consider the debt you could assume. Also take into account what that will mean going into your marriage with this debt.
If you do not plan to enter your marriage with additional debt, maybe you should consider other options. It’s not the sole way for earning the money necessary to purchase the wedding ring. Maybe you can avoid a wedding loan all together, or at least it’s not the best option for you.
Borrow From Family
Many turn to their parents or other family members to borrow an interest free loan in order to purchase the ring. In these cases, you should already have your ring picked out. Then you should be mindful how you ask to borrow the money. This is not something that should come through a text message. Invite your family member that you know is both emotionally and financially sound to brunch or dinner. Make the request face-to-face! This lets them know that you respect them and want to formally ask for their help. Describe the ring that you desire for your partner to them. Then let them know that you were hoping for minimal to no interest.
The con of this option is that sometimes we find family members wanting to dictate or have a say in the purchases we are making with their borrowed money. Do not be stressed by borrowing this money to save a little interest. If there will be consistent drama in the following days, consider heading on over to the bank or another lender for your peace of mind.
Borrow Cash On Your Credit Card
Do you have one of the premium credit cards that allow you the option of getting a cash advance? If so, you should head over to your bank with your credit card and see what is available for you. At least as far as a cash advance is concerned. This alone in many cases will provide you with the necessary cash to purchase the wedding ring. Plus, there is no additional monthly payment. Your cash advance payment will be factored into your monthly credit card payment, making it easy to pay back.
The drawback to this, however, is that the cash advance will make your credit card balance rise, which could negatively impact your credit score. Also, because cash advances also have a separate and sometimes higher interest rate than the APR for purchases applied to the card, your monthly payment may rise significantly.
Get Your Side Hustle On
Maybe you have a side talent that you utilize to make money. If you have the ability to tutor, babysit, pet sit, or have any additional services you would like to offer at a cost, consider doing this before taking out the loan. This can save you tons in interest repayment, and you can generate a second source of income which could not only pay off the wedding ring you desire for your partner but help you financially in the months following. If you are crafty and creative, you can also use your talent to make things and sell them to customers at your leisure. Things like custom shirts, door hangers, and other neat home decorations are a hot commodity and provide a solid source of income.
Do you have a set schedule at your job? If so, consider picking up a part-time position at your local retailer or restaurant outside of your normal work hours. Working short four hour shifts will give you the opportunity to earn some extra cash for your wedding overall, not just the wedding ring.
Many engaged couples find themselves taking on second jobs temporarily as a way to edge out their wedding costs and eliminate any debt before the wedding. Instead of taking a shift job, maybe you could join a direct sales company as a consultant selling products such as bags, make-up, or jewelry to friends, family, and the local community for additional money. These jobs are no longer just for stay-at-home moms and have provided a solid additional income for men and women everywhere over the last few years.
Making a wedding ring purchase is a big deal and an important part of your wedding expenses. Because it is essential to have that ring for your partner, sometimes funds get exhausted and we need the option for a wedding ring loan. Like any other loan or debt, however, it is critical to determine what type of debt this wedding ring can put us in, and ensure that the wedding ring loan is right for you.
If you are unable to take on one of the alternatives to a wedding ring loan and you still require cash, then it is important to make sure your credit and debt-to-income ratio is up to par for such a loan. Do not take on so much of this debt that you find yourself struggling shortly after marriage. Ensure that you take out a loan that is right for you.
Ethan founded Goalry, Inc in Dec 2016 with the mission to build the world’s first and only Financial Goal Mall. One place to reach financial goals and comparison shop for any money matter. Taub invents the IP for the finance stores within the mall, while overseeing various aspects of the company. He also has orchestrated the company’s earned media across the finance stores: Accury®, Billry®, Budgetry®, Debtry®, Cashry®, Creditry®, Loanry®, Taxry® and Wealthry®. This includes over 1200 blogs, 400 videos, thousands of social post and publications that have been featured across the web.