With the average cost of engagement rings costing about $6,000, according to The Knot 2022 Jewelry and Engagement Study, there’s a chance you don’t have enough cash on hand to afford such a major purchase. There are a few different ways to pay for an engagement ring, including personal loans, credit cards, and cash.

Requirements to Get a Personal Loan for an Engagement Ring

While buying within budget is ideal, it’s not the case for everyone. As such, you might need to get a personal loan for an engagement ring. A personal loan is a good financing option for an engagement ring if you’re able to qualify for a low rate and require two or more years to pay off the debt.

The following is a simple step-by-step guide on what you need to do to apply for a personal loan and how to use those funds to purchase an engagement ring.

1. Compare lenders: See which lenders offer amounts in the range you need. Since there’s no universal standard among lenders, offers vary widely among all of them. Look at the ones with the lowest annual percentage rate (APR) and the best repayment terms. 
2. Get pre-qualified: If you aren’t sure what your terms could be, see if you can get pre-qualified with different lenders to determine what types of offers you might receive and what you can expect to pay. If you don’t have great credit, your borrowing power might be less than what someone with good or excellent credit could have. Since there’s no hard inquiry, pre-qualification doesn’t hurt your credit and can help you narrow down your choices.
3. Pick an option: Once you have a lender in mind, complete a full application. This triggers a hard credit inquiry, so only go with the one that you expect to get an approval from. You’ll need to have some financial documents on hand, such as pay stubs, tax returns, banking information, and proof of residency.
4. Get your money: Personal loans can be used for anything. Once you’re approved for a personal loan, your money will be disbursed into your bank account—usually within a day or two. 
5. Buy your ring: With your funds in your account, you can buy your engagement ring. After disbursement, you’ll likely want to set up automatic monthly payments on your loan until it’s paid in full.

Alternatives to Finance an Engagement Ring

• Savings: The best way to avoid another monthly payment (and interest) is to save up for a ring and purchase it when you can financially afford to.
• Credit card: If you currently have 0% APR on a credit card—possibly through an introductory offer—you can use this to pay for your engagement ring. This is an interest-free way to pay for your ring if you don’t have the cash on hand to afford it. You can still use a credit card even if its APR isn’t 0%, but keep in mind that credit card interest rates are typically higher than those of personal loans. So you should try to pay off the balance amount you owe for your engagement ring purchase as soon as possible, ideally within a few months.
• Store credit card or loan: Many jewelry store chains offer a store credit card to pay for your purchase. Store credit cards only let you use them at that specific store (whereas standard credit cards can be used anywhere that accepts them). They might have a low introductory interest rate offer (or a 0% rate, depending on the card and store), but interest rates tend to be higher after the promotional period ends.
• Buy now, pay later: If you only have some of the cash on hand needed to afford an engagement ring and not enough time to save up, then buy now, pay later (BNPL) might be a good option. Some jewelry retailers offer this type of short-term financing, which lets you pay a portion of the cost of an engagement ring immediately and the rest in installments, potentially with no interest. Just make certain you understand your repayment terms before you agree—and, as with any loan, be sure not to miss any payments.

How Do People Use Personal Loans?

daftarlapak303.commissioned a national survey of 962 U.S. adults between Aug. 14, 2023, to Sept. 15, 2023, who had taken out a personal loan to learn how they used their loan proceeds and how they might use future personal loans. Debt consolidation was the most common reason people borrowed money, followed by home improvement and other large expenditures.

The Bottom Line

An engagement ring is only the beginning of wedding costs. Try to budget for a ring that best fits your needs right now, or figure out how to save for the future. The average cost of a wedding in the United States was $30,000 last year, and that doesn’t include the cost of an engagement ring.

While weddings are a one-day affair, you may not want to bring a lot of debt into your new marriage. Consider the cost of weddings and engagement rings, as well as other costs associated with a ring (such as whether the ring ought to be insured), when planning for such an event.