Where to finance? Or how.....

[ttby4444]

I''ve done allot of research on this forum and I can thank all of you enough for the help. I had a question that I didn''t think I would have until today. I need to find out what is the best way to finance a ring. Now I originally was planning on taking an equity loan on my home to finance the ring. I am not looking to spend more than 5K so I wouldn''t "hurt" that bad. Only problem is that the value''s of homes in the area are dipping and I don''t think I will meet the equity req since I only have had the home for 1 yr. My credit score is not that good, 640. I am and have been rebuilding it since one bad year 4 years ago.

I guess my question is, Does anyone know of a finance company that will accept my low credit score? My income is ok and I can easily afford the payments on a loan. I just need to find the right financer.

Any ideas? Places that are trustworthy or places that someone has dealt with?

Any info would be appreciated. I plan on having the ring by august timeframe.

 

[firebirdgold]

How long do you need to repay it?

 

[kevinyonker]

Considering that you cannot go the home equity route, you''ll need to obtain an unsecured loan. Interest rate will most likely run higher than a rate you would receive on a home equity loan. I would call your bank and ask to speak with a loan officer. They may ask for some paycheck stubs and such.

 

[ttby4444]

This may sound weird but I am not concerned with the repayment term, I mean within reason of course, but a 5, 10 year term is ok. Not sure if that''s what is typical for a jewlery finance.

I''ve read on this forum that its not advised to finance through the jewlers cause of the high interest, but I guess if that is the only way, then I would have too.

 

[f0rbidden]

have you considered buying from a company that offers a lay-a-way program?


that seems to me to be a better option than would be taking out a loan to pay for it - especially since interest rates are high.

i''ve seen this question before and the general consensus is..don''t take out a loan to pay for a luxury item when down the line that loan payment may keep you from getting something you really need.


That all having been said, and I will state that a few of the PS vendors do offer lay-a-way, you can also try financing through the bank you usually use - or, check out bluenile.com, as they have financing arranged through one of the big companies - or try diamondsonweb.com, they offer a buy now pay later program. i haven''t done business with either of these companies, so i can''t tell if you they are good bad or otherwise, but they are options that i considered before deciding that financing wasnt'' something i was comfortable with.

we elected to go with a lay-a-way - no interest financing

 

[ttby4444]

I would love the lay away deal, but I don''t think I can get 5K in 5 months paid off. I am taking a trip and plan on popping the question while on vacation. The vacation is to where I am originally from so before some of you get on me for taking a vacation and buying a ring, its my home, and home country. http://www.pricescope.com/idealbb/images/smilies/9.gif
Insert smilie

I will look into those site to see what they offer. This stuff sucks. If the market had stayed the way it was I would be ok.

 

[mrssalvo]

Many vendors here offer lifetime upgrade policys. Rather than taking on debt for a luxury albeit very important purchase I would suggest buying something you can afford to pay for now and then look to upgrade when you are in a better financial position to do so. Do you really want to be paying off an e-ring 5-10 years from now? As a woman, i would not want my hubby going into debt to buy me a ring. i would rather wear a plain band or save up for a nice diamond wedding band and buy the e-ring when we could afford it. Layaway can be another option if the jeweler offers it.

 

[february2003bride]

I agree with Mrs.Salvo. I just bought a beautiful .338 ACA from WF. All total with the setting came to $645.00. I plan to upgrade over the years untill I get to the 2+ ct. range. My DH is totally fine with this since it''ll be over time and not all at once. I do have a 1.06 princess e-ring but it sits in the jewelry box because I have 3 kids (2 in diapers). Hence the smaller, new stone for my very busy life.

Anyway, if my DH couldn''t have afforded my original e-ring when we bought it 4 years ago, I would have been more than happy with the size I just bought last week rather than go into debt. Heck, I was happy to just been asked "the" question!

I attached a picture of my new e-ring from White Flash. I bought a 2mm plain white gold wedding band from The Facets Collection to pair up with it.

Good luck!

 

[ttby4444]

I agree, the best bet for me would be the layaway option. I should go and see a local jewler and get some feedback on what they have available as far as that''s concerned. The laway plan is perfect but I have to make sure and have the entire payment by August and that may be tough. Not impossible but tough.

Thanks for your advice.

 

[f0rbidden]

I totally agree with what everyone''s saying!
Heck - the ring we''re buying now is a replacement for the engagement ring I wear - it''s sterling silver, witih no stones at all - we couldn''t afford anything else!

It didn''t matter then and it doesn''t matter now. I adore the ring I was given when my now husband asked me to marry him.

I think the suggestions you''ve gotten are right on target - spend what you can afford now, and don''t worry about it. I''m sure whatever you choose, she''ll love it.

 

[f0rbidden]

oh hey! dont'' give up on great online vendors with layaway programs!!

Talk with WF - they have something, diamonds on 5th has something, too, as does angeldiamond.

 

[ttby4444]

That''s a really nice ring. I like allot of the whiteflash settings. I hope she will too. Thanks for the advice on getting the smaller stone. Might be something to consider. I will have to figure something out this weekend, times ticking.......

 

[tarssarb]

Date: 3/20/2006 4:03:42 PM
Author: ttby4444
That''s a really nice ring. I like allot of the whiteflash settings. I hope she will too. Thanks for the advice on getting the smaller stone. Might be something to consider. I will have to figure something out this weekend, times ticking.......

DON"T GO INTO DEBT TO BUY A RING! Nothing could be more of a luxury item, where is your home country and what size stones are typical? Get a subsitute for a diamond such as a pearl or what not and then replace it with a diamond or get a small diamond as suggested.

Money problems could lead to more relationship strife than the stone size. Upgrade later, everything has its time.

 

[february2003bride]

Thanks! My ring size is a 6.25 and it looks proportionate on my finger. So if your GF''s fingers are smaller than mine, a smaller size stone will look even bigger!

Here are a few suggestions:

http://www.whiteflash.com/hearts_arrows/A-Cut-Above-H-A-cut-diamond-1948461.htm#

http://www.whiteflash.com/hearts_arrows/A-Cut-Above-H-A-cut-diamond-2361988.htm#

http://www.whiteflash.com/hearts_arrows/A-Cut-Above-H-A-cut-diamond-2361996.htm#

This is on sale, and while the center stone is a .49, the halo makes it look much larger!

http://www.thefacetscollection.com/item.cfm?item_id=3701

One more:
http://www.thefacetscollection.com/item.cfm?item_id=3763

Good luck!

 

[firebirdgold]

Date: 3/20/2006 3:58:29 PM
Author: ttby4444
I agree, the best bet for me would be the layaway option. I should go and see a local jewler and get some feedback on what they have available as far as that''s concerned.

Local jeweler? *smack hand* Bad ttby4444. Local jewelers simply can not match the price of online diamond vendors because of their massive overhead. Since it''s important to squeeze every bit of value out of your money, I''d really go with whiteflash.
And I definitely agree. Go with something that you can afford.

 

[mrssalvo]

I don't know your current budget or if you even have one yet but Pearlmans has this gorgeous setting for a great price. Bill can supply a stone or you can use one of the other great PS vendors and you'd end up with an incredible paid for ring. There are so many other options out there other than financing..


here's the Link

 

[ttby4444]

Sorry but I mentioned local because I figured they''d be more willing to give me the layaway option. I cam going to call WhiteFlash. I guess I could always buy the setting now, then save for the diamond and in august depending on how much I saved buy the appropriate diamond.

This stuff scares me to death.

 

[moremoremore]

I think you could always apply for a bluenile charge...and when you qualify for the home eq, you could pay it off...But you'll overpay no matter what...
I'm not going to give ya financial advice...that's your business...I'm only here for the diamonds

whatever you feel comfortable with works

And 640 isn't that bad...

 

[Mara]

you know what would scare me to death? knowing my fiance financed my ring and doesn't plan to pay it off for 5-10 years!!!

seriously, this is a luxury purchase. i can get on board for financing if it takes 6 months or less on a low-interest credit card or something but taking out a home equity loan or a high interest card just to get a sparkly ring? no no no!!

i love diamonds as much as the next girl, but please be smart about this, if all you can afford between now and august is $1k then go with that instead of $5k, and use a vendor that has an upgrade policy. i would much rather have a smaller stone in a $200 setting than a $5k stone and setting bought on credit to start off our new life together.

none of us are perfect with finances, but i would seriously urge you to think about this. you don't want to make a decision you don't feel good about a year or two or ten from now. good luck!

 

[esguy27]

I paid cash for about 2/3 of the cost of the entire ring and for the other 1/3, I opened up a new credit card account with Citibank that gives me 0% interest for 12 months. I only used it for the ring and I''ll be done paying it off in about 2 months. I will not have paid $0.01 in interest. Once it is paid off, I''m going to close the account.

Over time, this type of approach may affect your credit score, but I don''t make a habit of it and it''s worked perfectly for me.

 

[Dancing Fire]

Date: 3/20/2006 6:00:06 PM
Author: esguy27
I paid cash for about 2/3 of the cost of the entire ring and for the other 1/3, I opened up a new credit card account with Citibank that gives me 0% interest for 12 months. I only used it for the ring and I''ll be done paying it off in about 2 months. I will not have paid $0.01 in interest. Once it is paid off, I''m going to close the account.

Over time, this type of approach may affect your credit score, but I don''t make a habit of it and it''s worked perfectly for me.

that would be the way to go but, if he doesn''t have a good credit score Citibank will not offer him 0% interest.

 

[movie zombie]

i''ll be blunt: don''t take out a home equity loan to buy this ring...or any ring. your home is your home: not a stash to buy luxury items. you''ve already said home prices are dipping. and if you read any of the old posts here at pricescope you''ll find that most women seem to want to ''upgrade'' from what they rec''d in the first place. be practical and buy only what you can actually afford. do layaway if you can. but do not take out a home equity loan. there have been many lovely rings posted at pricescope for much less than you''re planning to spend. you can get the larger/better/more sparkley ring later when your credit score is higher and you can afford it.

movie zombie

 

[asscherisme]

PLEASE don''t go into debt buying a ring!! Not a good way to start a marriage. And then you still have the wedding and honey moon and you are in debt over the ring.

You can ALWAYS upgrade in the future. Buy from someplace that will give you full trade in value in the future. Better to buy small now and then save that money that you would have spent on loan payments. This way, no loan now and when you are ready you can pay cash for the upgrade.

Heck, my husband just bought me a new ring after more than 10 years of marriage and 4 kids. When we first got married he wanted to buy me a big ring like our friends had but he had the common sense to not go into debt. And I am thankful that he did not go into debt for jewelry.

Good luck to you!

I have diamond earrings that I bought from whiteflash and they are top notch to deal with. I would buy from them without hesitation.

 

[Lynn B]

Ditto! I don''t think it''s wise to go into debt for a ring. You have been given a lot of good suggestions; may I offer one more? Maybe consider buying a CZ and replacing it with a real diamond in the future when you can afford it. Some CZs are absolutely gorgeous, and as long as you are honest with your GF about it, and she is OK with it, it might possibly be a good solution for now. Just my humble 2 cents.

 

[littlelysser]

ttby - I''d really recommend that you listen to the folks that are counseling against going into debt to buy the ring...it might seem like a nice idea...based upon your post, it doesn''t seem that now is the time to go in debt for a diamond, particularly when you can find something very nice with the help of the PSers here for MUCH less money!

Just doesn''t seem like a good thing to do ...and your GF loves you for who you are...not what you can buy her!

 

[Dancing Fire]

Date: 3/20/2006 3:31:00 PM
Author: ttby4444
This may sound weird but I am not concerned with the repayment term, I mean within reason of course, but a 5, 10 year term is ok. Not sure if that''s what is typical for a jewlery finance.

I''ve read on this forum that its not advised to finance through the jewlers cause of the high interest, but I guess if that is the only way, then I would have too.

yes,within 5 or 10 mins but not within 5-10 yrs,interest alone would double teh original amount borrow. remember...the goal after a marriage is to get out of debt as soon as possible

not to get into debt as soon as possible.

rule #1...never use your equity to buy luxury items,NEVER !!!

 

[movie zombie]

i like the CZ suggestions....and don''t forget that many of us have opted for a color stone for an e-ring! you can get something in color very very reasonable.

movie zombie

 

[valeria101]

Date: 3/20/2006 5:22:03 PM
Author: Mara

you know what would scare me to death? knowing my fiance financed my ring and doesn''t plan to pay it off for 5-10 years!!!

Ditto!

I can''t know your fiancee, but do not know any girl who would want such a financial burden hanging from her left hand either. If I were you, I''d have this thread deleted to erase all conceivable traces and never think about it again. There must be another way to go about it.

Btw, how does something like this sound?

After all, there doesn''t have to be a ring at all. And if there is one, it does not have to be a surprise. Regardless of the relative value of this purchase for everyone, there are hundreds of posts around here left proof that shopping for engagement rings together is one way to agree on what works for every situation. Quite a few of the larger rings are upgrades and late buys made many years after the proposal and wedding. It doesn''t sound like those are less happy in any way - quite on the contrary. One thing to consider, I''d guess.


My 2c

 

[ttby4444]

I feel like I''ve just been to a shrink! Thanks to all for you helpful suggestions. My original thought with the equity was to pay off the ring, then clear off some debt although its not much. I''d still have some left over to put back into the original 10K loan. It wasn''t soley for the ring.

Regardless, after the overwhelming responses I think I will pass on the equity thing right now. I am going to look for a layaway plan becuase I think that suits me best. I think I can manage paying about 600 a month till August. That would give me 3000. I beleive I can get something close to what I was looking for that price. And like many of you mentioned, I could always get something that she can upgrade later. Question: Is this a process that many online jewlers follow? Upgrading that is?

Now does anyone know what the requirements are for some of these layaway programs? And who offers them?

 

[f0rbidden]

I''d say - call a couple of places and ask them about their plans. You''re only looking at 6 months, which isn''t too terribly long a period of time. The place I''m buying from will give up to a year to pay off a layaway.

And, now that you have a budget in mind, you can start peeking around to find something you and she will love!