Cash or credit?

[Upgradable]

My husband and I are saving up to upgrade my ER. Out of curiosity, how have you paid, or how do you plan to purchase your ring. Cash, or finance it?

Does it make a difference what size stone you''re planning?

 

[hoorray]

I don't believe it is smart to finance luxury items such as diamonds -- especially since you aready have one. IMO, you should wait until you have the cash available to pay for such an item. Consumer debt (with the exception of house mortgages) is incredibly expensive, and sets you back financially instead of making you financially stronger.

I don't pay the credit card fee when paying for a large item like a diamond. Since most vendors will reduce the price for cash, I wire the $$ instead. I'm a big believer that being smart financially has a huge payoff in the long run.

 

[pearcrazy]

I paid with a credit card since I was wary of buying over the internet and had previously had a bad internet experience buying a diamond. It cost me 2% more to do so but worth it to me for the extra security. I had a good experience with the company and if I do future business with them will do so in cash.

When the credit card bill came, it was paid in full with cash set aside for the purchase. I also gained a few thousand miles too. I don't believe in financing an upgrade. It is a luxury after all and not a necessity. Just save until your budget allows. We saved for almost 3 years and my upgrade came for our 13th anniversary instead of our 10th as I had hoped for.

 

[zoobiedo]

Depends on the situation. Don't use your credit card for financing purposes but, if like me, you live so many miles away from the independent appraiser that when you go to look at it and decide you want it that it is more cost effective to use your credit card and take it home on the spot rather than wire the money and make another trip to pick up the stone then use your credit card. The point is -- just make sure you have the money at hand to pay for the purchase whether wiring the money or putting it on the credit card.

 

[yowahking]

As pearcrazy said, 2% is not so bad to put it on a credit card if you hava a low interest rate card or can get miles. The typical jewelry financing is 21-23% if you read the fine print. One hook is the 90day to 12 months no interest which has a few % built into the price as the finance co gets from 3% - 7% for the hassle. You will almost always find the best deals when paying on the spot. When ever you want a nice diamond, there will be one for you.