alvaro gonzalez/ Getty Images; Illustration by Austin Courregé/Bankrate
Key takeaways
- In-house financing, credit cards, personal loans and point-of-sale financing are common ways to fund engagement rings.
- Features like the setting, material and stone influence the cost of the ring.
- The average engagement ring can cost more than $6,000 — and it can be more expensive if you choose more luxurious options.
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.
On any given day, a good quality ring can set you back a few thousand dollars — and buying an engagement ring in 2024 may be more challenging than usual. That said, having a budget that closely aligns with your situation is key when ring shopping.
Financing engagement rings statistics
- The average amount Americans spent on an engagement ring was $6,500 to $7,000, according to Brides.
- The most popular price range for wedding bands runs from $700 to $1,200, according to information from Brides.
- Americans spent about $7,820 for their whole engagement in 2020. This includes the ring, photographer and both engagement and bridal parties.
- Diamonds are still the most popular stone when it comes to engagement rings, accounting for 85% of all rings purchased in 2023.
- Lab-grown diamonds are a popular trend — largely because they can cost 50 to 70 percent less than natural diamonds.
- The average size of an engagement ring is one carat.
- Yellow gold engagement rings are rising in popularity, with a 26% increase since 2015 — but white gold still remains the most popular in 2023.
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You might have heard the outdated rule of thumb that an engagement ring should be worth approximately three months of salary.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.
An engagement ring doesn’t have to add up to that much money, but you should still be prepared to spend at least a grand on the purchase. Brides reports that the average cost of an engagement ring now hovers between $6,500 and $7,000.
Ring setting, metal type and diamond or gemstone details — like rating 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. 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, you may want to check out in-store financing. Many major jewelry retailers offer in-house financing to help their 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 to borrowing a loan from a traditional bank. Terms and financing requirements, like a minimum purchase amount, will vary by retailer.
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 periods or can 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 card before the promo period ends, it can result in paying no 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 who have good credit and 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.
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 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.
Frequently asked questions
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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.
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Wedding bands usually cost less than engagement rings. According to Brides, they start around $700 for the most popular types. 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.
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The average American spends about $6,500 to $7,000 on their engagement ring. That’s an average — some people spend much more, and some spend much less. If you’re curious about how much you should spend, consider using an engagement ring calculator, as this could give you a better idea of what’s attainable.
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It is possible to finance an engagement ring with bad credit. Some jewelers, for instance, offer layaway plans for customers with bad credit. Another option worth exploring is peer-to-peer lending, which often has more lenient or flexible credit requirements. In cases where you’re unable to obtain financing, it is best to select a more affordable ring.
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