Can You Get a Personal Loan to Finance a Wedding Ring?

October 31, 2023 Personal Loans

Key Takeaways

A personal loan can be a valuable and flexible way to finance your wedding ring. It can mitigate the effects of financial challenges on your marriage plans, preventing delays and allowing you to secure your dream set of rings.

However, make sure you carefully balance sentimental desires with financial responsibility. A personal loan poses a potential debt risk that couples may not want to deal with going into their marriage.

If you do choose to take out a personal loan, here are best practices to help you maintain long-term financial health:

  • Set a realistic budget for loan repayment
  • Prioritize paying off the loan
  • Don’t miss monthly payments
  • Consult with a financial advisor if you need guidance
Can You Get a Personal Loan to Finance a Wedding Ring?

To many couples, wedding rings symbolize eternal love and commitment. It’s important to find suitable rings since they will be worn daily for a long time. Unfortunately, wedding rings are constantly rising in cost. The exorbitant price tags make financing strategies necessary, especially for couples facing unexpected financial challenges.

A personal loan is a versatile, unsecured loan that can help you finance your dream wedding ring. In this guide, we’ll go over popular methods to finance a wedding ring, pros and cons of each, and whether a personal loan is right for you.

Why consider financing a wedding ring?

Cost vs. sentiment

Gorgeous wedding rings of couples’ dreams are often expensive. The average pair of wedding rings costs around $1,600. This upfront cost may be too costly for many couples to conveniently afford. The high price tags often lead couples to choose suboptimal rings.

Choosing a financing st rategy can help you afford the wedding ring you desire the most, without worrying about the upfront expense severely impacting your budget.

Traditional saving methods might fall short

Once upon a time, it was easier to save up over time to buy a nice wedding ring. However, today’s society has become increasingly fast-paced and stressful. More couples are eager to marry sooner rather than later, which means they’d rather not take years to save up for their dream wedding ring.

Modern societal trends of wedding rings

Recent trends have pushed people to prioritize customizable wedding rings with unique designs and gems. A personal loan could help you catch up to and afford the latest ring fashion trends.


Understanding personal loans

Personal loan terms and requirements vary based on your chosen loan provider. Here are some of the standard characteristics of a personal loan.

Fixed interest rates

Personal loans usually come with fixed interest rates. This means that the interest rate will stay the same throughout the life of your loan and is designated by the loan agreement you sign. Many borrowers benefit from this predictability, which can make their financial planning easier.

Set repayment periods

Personal loans are a type of installment loan, which means borrowers are expected to make repayments on a set schedule. This typically means you will need to pay an installment every month.

The advantage to having set repayment periods is that it becomes easier to budget for loan repayment. You can even set up automatic payments so the monthly payments are withdrawn without hassle.

No collateral necessary

Collateral refers to the asset the borrower uses to secure the loan. The value of the collateral affects the loan amount you can borrow, but if you default on the loan, the lender will be able to repossess the collateral, forcing you to lose your precious asset.

It’s easy to find a personal loan that is unsecured. Unsecured loans don’t require borrowers to offer any assets as collateral. While this can increase average loan interest rates across the board, not needing collateral assets can reduce your risk as a borrower.

Risks and potential drawbacks

There are two main risks associated with taking out a personal loan for any purpose, including for a wedding ring. First, you will accumulate debt. Having a debt obligation can create a stressful financial situation in your household. Since you might end up deciding to obtain a mortgage, a loan for the honeymoon, or a loan for the wedding, these debt obligations can pile up.

If you want to repay the loan early, some lenders charge you an extra prepayment fee. For borrowers planning on paying off the loan debt sooner than the agreed-upon loan term, it’s a good idea to find a lender without prepayment penalties.

Another drawback to personal loans is the interest. The interest essentially acts as the cost of borrowing, which can be a hefty amount as it adds up over time. Newlywed couples might not have the repayment capacity to deal with the accrued interest.


Evaluating whether a personal loan is right for you

Personal loans aren’t the optimal financing strategy for everybody. Here are some key factors to consider when deciding whether to take out a personal loan.

1. Assess your current financial situation

When you take out a personal loan, you’ll need to repay the loan plus interest.
Look at your budget, income, employment stability, and pre-existing debt obligations when evaluating your current financial situation. These factors commonly affect a borrower’s repayment capacity.

If you can’t follow the loan repayment schedule, it can hurt your financial standing and credit score, leading to long-term consequences.

2. Consider your future financial obligations

Don’t forget to factor in other financial obligations. For example, how will wedding expenses impact your savings? Child-rearing expenses also take a toll on family savings, which can reduce a couple’s repayment capacity.

By taking into account how your financial obligations will change over time after marriage, you can better manage debt.

3. Know the impact of credit score

The higher the credit score, the more creditworthy you are considered. Two main credit scoring models are commonly used by lenders to evaluate the creditworthiness of potential borrowers. These models are VantageScore and FICO. Both are three-digit numbers ranging from 300 to 850.

If you have good or excellent credit, you can obtain loans with better terms and rates. Loan eligibility may also be greatly impacted, giving you a broader range of lender options. Because of this, it’s advisable to try and boost your credit before applying for a personal loan.

Meanwhile, your loan repayment ability can also impact your credit score. If you poorly manage the debt and end up with missed payments or even a loan default, this can seriously damage your credit score. This will make it harder to obtain credit or loans in the future. If you’re a newly married couple looking to take out a mortgage, it’s important to consider the potential risks associated with taking out a personal loan.


Steps to obtain a personal loan for a wedding ring

1. Decide how large of a loan you need

Wedding rings can vary greatly in cost. The average wedding ring costs around $1,000, but adding customizations and other choices to the mix can raise this significantly. Before taking out a personal loan, consider what ring you have your eyes on. That way, you can avoid borrowing more than you actually need.

2. Research potential lenders

The next step to finding a personal loan is to research lenders suitable for financing wedding rings. If you need a smaller loan of a few hundred or a thousand dollars, it can actually be harder to qualify for these small loan amounts than if you borrowed slightly more.

Make sure you shop around and research reputable loan providers so you can find the one with an offer that aligns best with your needs and repayment capability. Potential lenders include:

  • Traditional banks
  • Online lenders
  • Credit unions

3. Prepare necessary documentation

In your loan application, you will be expected to provide various essential documents. Here are the most commonly required elements of a personal loan application:

  • Proof of income
  • Credit history
  • Proof of identification
  • Contact information
  • Employer verification

4. Compare interest rates and loan terms

Not all loans are created equal. It’s advisable to consider multiple loan offers so that you get a good idea of what loan terms should work advantageously for you. Interest rates typically range between 6 and 36 percent, with rates influenced by factors such as financial stability and creditworthiness. Take the time to find the loan terms and rates that work best for your situation.

5. Fill out loan application and await approval

After submitting your loan application, it’s time to wait for the loan decision. Sometimes, lenders may request additional details or documentation from you through the online portal. Make sure you judiciously monitor your application status and provide the requested information to ensure a seamless loan application process.

Approval times vary from lender to lender. If you urgently want to buy a wedding ring, some lenders do offer same-day approval and loan disbursement. However, carefully review the loan terms so you can make an informed financial choice.


The pros and cons of using a personal loan for a wedding ring


Fast funding: You can buy the ring immediately if you use a personal loan. Personal loans can provide you with quick funds, letting you promptly secure the wedding ring of your dreams.

Fixed monthly payments: Most personal loans come with fixed monthly payments. This predictability is great for helping borrowers plan their budget around loan repayment.

Competitive interest rates: Borrowers with good to excellent credit can benefit from low interest rates. The lower the interest rate, the more you can save over the life of the loan assuming other loan terms remain constant.


Long term financial commitment: A loan can take several years to repay, depending on your loan agreement. Some couples may not feel ready or willing to take out a loan that necessitates a long term financial commitment. It is a good idea to discuss the financing strategy with your partner before taking out a personal loan for a wedding ring.

High interest rates with poor credit: If you have a poor credit score, the loan terms you receive may end up too unfavorable to be worth it. High interest rates and strict loan repayment terms can make personal loans unsuitable for your needs. In this case, it might be preferable to use personal savings instead.

Risking debt for non-essential item: A wedding ring isn’t considered an essential item like food, shelter, or other utilities. Taking out a loan for a non-essential expense may not be desirable depending on your circumstances.

Alternatives to personal loans for financing a wedding ring


The most traditional and straightforward way to purchase a wedding ring is to use your savings. This lets you avoid debt and not have to deal with any interest on the price.

In-store financing plans

Jewelry stores commonly offer in-house financing plans and options. Make sure to compare the plan details and interest rates with those of personal loans to ensure you’re getting the best deal.

Credit card financing

Credit cards are another convenient way to finance a wedding ring. Some credit card issuers offer 0% introductory APR promotions, which can help alleviate the debt burden of buying an expensive ring.

Borrowing from friends and family

You might be able to receive financial assistance from close friends and family in the form of an interest-free loan or donation. However, consider the potential strain on your relationships if you do obtain contributions from people you know.

Layaway plans for wedding rings

Some jewelry stores offer layaway plans where you can make periodic, smaller chunks of payments toward your wedding ring until the entire cost has been paid in full. The structure and predictability a layaway plan provides can be beneficial to those looking to avoid taking out a loan.

Tips for reducing wedding ring costs

If you’re planning on buying a wedding ring, here are a few tips that could help you reduce the overall cost.

  • Choose an alternative metal or gemstone
  • Opt for a vintage or second-hand ring
  • Consider local artisans
  • Choose cheaper customizations

Resources and further reading

Finding a suitable lender can ensure better loan experiences. Here are a few reputable lenders to get you started with comparing loan rates.

  • Credible
  • SoFi
  • Discover
  • LightStream
  • Upgrade

About The Author

Author Avatar

Ru Chen

Content Writer

Ru Chen is a content writer with several years of experience in creating engaging and well-researched articles. She mostly writes about business, digital marketing, and law. In her free time, she can be found watching horror movies and playing board games with her partner in Brooklyn.

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