Finance or Cash???

[lovehersomuch]

in my other thread i found the potential diamond... i dont want to jump the gun but.......

I wanted to get some feedback on what method is preferrable when purchasing an engagement ring. I know this depends a lot on everyones individual situation. I have the funds available to purchase in full - my jeweler will discount the price about $200 if I do a wire transfer. Most jewelers offer 0% financing for about 6 - 12 months.

For my situation - I am looking to purchase a home by the end of the year and was initially going to buy the ring using my stock options which were vested.. since I didnt exercise them earlier they went down in value due to the current market conditions... so if i wanted to buy the ring in full i''d have to go into my savings account which is fine.

should i pay in cash with the wire transfer or just go ahead and finance the ring and pay it off in full in a few months as soon as my stocks do a bit better? that way i wont have to touch my savings at all.

when buying a home will the lender see this loan taken out on the ring when they pull my credit even if i paid it off in full? anyone know if it would have negative consequences on credit or hinder anything in the mortgage process?

thanks

 

[krisvrn]

Date: 3/19/2008 12:06:43 AM
Author:lovehersomuch
in my other thread i found the potential diamond... i dont want to jump the gun but.......


I wanted to get some feedback on what method is preferrable when purchasing an engagement ring. I know this depends a lot on everyones individual situation. I have the funds available to purchase in full - my jeweler will discount the price about $200 if I do a wire transfer. Most jewelers offer 0% financing for about 6 - 12 months.


For my situation - I am looking to purchase a home by the end of the year and was initially going to buy the ring using my stock options which were vested.. since I didnt exercise them earlier they went down in value due to the current market conditions... so if i wanted to buy the ring in full i''d have to go into my savings account which is fine.


should i pay in cash with the wire transfer or just go ahead and finance the ring and pay it off in full in a few months as soon as my stocks do a bit better? that way i wont have to touch my savings at all.


when buying a home will the lender see this loan taken out on the ring when they pull my credit even if i paid it off in full? anyone know if it would have negative consequences on credit or hinder anything in the mortgage process?


thanks

Yes the lender will see this loan even if its paid in full. As long as u pay on time it should not effect your credit score. It may help your finance rate ~ lender will see good hx of payment. If you are late or default on loan, yes, it may affect you when buying a house. U may get a higher finance rate.

 

[lovehersomuch]

Date: 3/19/2008 12:11:18 AM
Author: krisvrn

Date: 3/19/2008 12:06:43 AM
Author:lovehersomuch
in my other thread i found the potential diamond... i dont want to jump the gun but.......


I wanted to get some feedback on what method is preferrable when purchasing an engagement ring. I know this depends a lot on everyones individual situation. I have the funds available to purchase in full - my jeweler will discount the price about $200 if I do a wire transfer. Most jewelers offer 0% financing for about 6 - 12 months.


For my situation - I am looking to purchase a home by the end of the year and was initially going to buy the ring using my stock options which were vested.. since I didnt exercise them earlier they went down in value due to the current market conditions... so if i wanted to buy the ring in full i''d have to go into my savings account which is fine.


should i pay in cash with the wire transfer or just go ahead and finance the ring and pay it off in full in a few months as soon as my stocks do a bit better? that way i wont have to touch my savings at all.


when buying a home will the lender see this loan taken out on the ring when they pull my credit even if i paid it off in full? anyone know if it would have negative consequences on credit or hinder anything in the mortgage process?


thanks

Yes the lender will see this loan even if its paid in full. As long as u pay on time it should not effect your credit score. It may help your finance rate ~ lender will see good hx of payment. If you are late or default on loan, yes, it may affect you when buying a house. U may get a higher finance rate.

if i chose to finance there would be no late payments.. id probably pay it off in full within 3-4 months.





what option would you all choose in my situation? cash or finance?

 

[Deelight]

If you are doing 0% interest loan I would seriously inquire what the fees and charges are the 0% is hardly ever 0% and this means the ring will still be more then if you pay sticker price or in this case cash where you get a discount. Also as a note the repayment schedule that give you will not be the amount you need to pay in order to pay off the loan in time.


Just my 2 cents

 

[krisvrn]

Date: 3/19/2008 12:27:09 AM
Author: lovehersomuch

Date: 3/19/2008 12:11:18 AM

Author: krisvrn

Date: 3/19/2008 12:06:43 AM

Author:lovehersomuch

in my other thread i found the potential diamond... i dont want to jump the gun but.......



I wanted to get some feedback on what method is preferrable when purchasing an engagement ring. I know this depends a lot on everyones individual situation. I have the funds available to purchase in full - my jeweler will discount the price about $200 if I do a wire transfer. Most jewelers offer 0% financing for about 6 - 12 months.



For my situation - I am looking to purchase a home by the end of the year and was initially going to buy the ring using my stock options which were vested.. since I didnt exercise them earlier they went down in value due to the current market conditions... so if i wanted to buy the ring in full i''d have to go into my savings account which is fine.



should i pay in cash with the wire transfer or just go ahead and finance the ring and pay it off in full in a few months as soon as my stocks do a bit better? that way i wont have to touch my savings at all.



when buying a home will the lender see this loan taken out on the ring when they pull my credit even if i paid it off in full? anyone know if it would have negative consequences on credit or hinder anything in the mortgage process?



thanks

Yes the lender will see this loan even if its paid in full. As long as u pay on time it should not effect your credit score. It may help your finance rate ~ lender will see good hx of payment. If you are late or default on loan, yes, it may affect you when buying a house. U may get a higher finance rate.

if i chose to finance there would be no late payments.. id probably pay it off in full within 3-4 months.






what option would you all choose in my situation? cash or finance?

for me it would depend how much i had to dip in my savings. if u finance and pay in full 3-4 months, i think u will fine. just make sure u calculate the pymts so u can get ring paid off before 0% financing is done if u dont pay ring off and 0% financing period is up, u will end up paying a lot in interest.

 

[lovehersomuch]

Date: 3/19/2008 1:20:16 AM
Author: krisvrn

Date: 3/19/2008 12:27:09 AM
Author: lovehersomuch

Date: 3/19/2008 12:11:18 AM

Author: krisvrn

Date: 3/19/2008 12:06:43 AM

Author:lovehersomuch

in my other thread i found the potential diamond... i dont want to jump the gun but.......



I wanted to get some feedback on what method is preferrable when purchasing an engagement ring. I know this depends a lot on everyones individual situation. I have the funds available to purchase in full - my jeweler will discount the price about $200 if I do a wire transfer. Most jewelers offer 0% financing for about 6 - 12 months.



For my situation - I am looking to purchase a home by the end of the year and was initially going to buy the ring using my stock options which were vested.. since I didnt exercise them earlier they went down in value due to the current market conditions... so if i wanted to buy the ring in full i''d have to go into my savings account which is fine.



should i pay in cash with the wire transfer or just go ahead and finance the ring and pay it off in full in a few months as soon as my stocks do a bit better? that way i wont have to touch my savings at all.



when buying a home will the lender see this loan taken out on the ring when they pull my credit even if i paid it off in full? anyone know if it would have negative consequences on credit or hinder anything in the mortgage process?



thanks

Yes the lender will see this loan even if its paid in full. As long as u pay on time it should not effect your credit score. It may help your finance rate ~ lender will see good hx of payment. If you are late or default on loan, yes, it may affect you when buying a house. U may get a higher finance rate.

if i chose to finance there would be no late payments.. id probably pay it off in full within 3-4 months.






what option would you all choose in my situation? cash or finance?

for me it would depend how much i had to dip in my savings. if u finance and pay in full 3-4 months, i think u will fine. just make sure u calculate the pymts so u can get ring paid off before 0% financing is done if u dont pay ring off and 0% financing period is up, u will end up paying a lot in interest.

i''d essentially dip into my house fund i have 100k saved up... so id only need about 8k or so for the ring and diamond. it wouldnt effect anything.. i could just pay it off in full with money from my savings and not worry about the loan on my credit report etc.. or just finance for 3-4 months and pay it off with the stock options..... that way i dont touch my savings at all....


hmmmmmmm

 

[cara]

free financing isn''t free. it is built into the price of the diamond. i am not an expert, but I believe that provided your payments are on time, the debt will not hurt your credit score but will affect the bank''s calculations of an acceptable debt/income ratio when determining what kinds of loan you are eligible for.

I would:
Decide to pay by wire. Shop for best price, not caring about 0 % financing options, which, remember, you pay for one way or another. Then refund house account with stock options in a few months.

 

[krisvrn]

Date: 3/19/2008 4:05:36 AM
Author: cara
free financing isn''t free. it is built into the price of the diamond. i am not an expert, but I believe that provided your payments are on time, the debt will not hurt your credit score but will affect the bank''s calculations of an acceptable debt/income ratio when determining what kinds of loan you are eligible for.

I would:
Decide to pay by wire. Shop for best price, not caring about 0 % financing options, which, remember, you pay for one way or another. Then refund house account with stock options in a few months.

This is true - it could potentially make your debt to income ratio bigger but I think he mentioned he''d pay it off in 3-4 months before the house? But anyway, if u do finance read all the info. I think either way is fine. But of course if you wire your money in cash, you get $200 off right? So that maybe a better option.

 

[lovehersomuch]

Date: 3/19/2008 4:05:36 AM
Author: cara
free financing isn''t free. it is built into the price of the diamond. i am not an expert, but I believe that provided your payments are on time, the debt will not hurt your credit score but will affect the bank''s calculations of an acceptable debt/income ratio when determining what kinds of loan you are eligible for.

I would:
Decide to pay by wire. Shop for best price, not caring about 0 % financing options, which, remember, you pay for one way or another. Then refund house account with stock options in a few months.

i think this is what im going to do.

thanks for your opinion.. i was leaning towards this too!

 

[coda72]

I have used 0% financing and 0% interest credit cards quite a few times. As long as you do everything correctly, it''s a great way to make a big purchase. The only things you have to remember are to make payments exactly on time because if you don''t, you owe all the back interest on the balance, and when the 0% interest ends so you can pay it off in time. It''s a great way to use someone else''s money for a period of time. Almost like layaway with instant gratification. I''ve never had to pay extra charges or fees for using 0% interest plans, and I would imagine most times you won''t have to pay extra.

 

[kcoursolle]

I generally advise paying in cash for purchases like e-rings. It sounds like you can easily afford it without having to wait more than a month or so extra to buy the home you want.

 

[surfgirl]

Cash.

 

[triple]

Hi,

The problem with financing is they will most likley give you a very high credit limit, much more than the ring price. This could be a problem when you purchase your house. When they run a credit check on you they will see that you have this account with lets say a $20,000.00 limit. Even if you paid the balance off, that available credit could be used later on down the road, at least that is what the underwrites will think and that could hurt you. If you do finance, close the account after you pay it off. This could still hurt you. I would pay CASH and not worry if it will hurt your chance of buying a nice home.

 

[lovehersomuch]

thanks all... i have decided to pay cash for the purchase.


now i just gotta find the right diamond!

thought i had it last time....