Financing need some help

[climbhigh]

I will be financing a ring and was hopeing someone could steer me in the right direction. My purchase will not be extravagant and I have set a limit of 3,000. My credit history is not so perfect but has improved dramatically over the last few years. I have considered saving for this rather than financing but really have my heart set on doing this by Christmas , which leaves me with financing. I have applied for a loan with the same company that financed my automobile but was denied. Not sure why , I''ve never been late on a payment. I thought perhaps there is someone on this board who knows someone who knows someone who could work with me. Any help will be appreciated , thanks.

 

[belle]

you really, really should not be financing a luxury item. i know that is not what you wanted to hear but i would be remiss not pointing out the obvious.

 

[chrono]

I am sorry I don't have any clue as to financing a ring. Just wanted to chime in that rings (although symbolic in a marriage), is actually considered a luxury item, and isn't adviseable to be financed. It also isn't a good feeling to start a marriage with a loan. Just try to do your best within your cash budget. Perhaps, an upgrade at a later date would be a consideration?

 

[kcoursolle]

Most people here would tell you not to finance a ring. I would either save up to buy the ring later and change your proposal date, buy a less expensive ring (that can be upgraded later), or perhaps ask a close family member for a low interest loan instead.

For 1k you could easily buy a very beautiful .4 carat stone in a simple four prong tiffany style setting. If you purchase from a company with an upgrade policy you could get a bigger stone or more elaborate setting over time.

 

[musey]

I gotta go with the others. Why not find a lower-cost option, or spend the time leading up to christmas saving your pennies and see where that can get you.

PSers are simply fantastic at finding great deals... if you tell us how much you''ve already saved, we can help you find some options at or close to that budget. We love to help people find a great ring!

 

[iheartscience]

I believe Pearlman''s offers financing, but I guess your credit would have to be good enough to qualify. Another option you could look into is getting one of those credit cards with 0% interest for the first year. Also, it''s not a bad idea to try to get a loan from your parents if that''s possible.

If none of the above are possible, you should definintely just go for a smaller stone now and upgrade later. I bet you could swing $1000 between now and Christmas, and that''s plenty to get you a great looking diamond and ring!

 

[onedrop]

You've already been given great advice re: whether to finance the ring or not, and have also been given some great options in order to make the ring/proposal happen by Christmas. As an aside, since you were denied credit, you should also pull your credit reports to see if there was some mistake or unauthorized activity in the report that might have lead to your being denied. If you are denied credit you are entitled to a free credit report. Just a bit of consumer advice.

 

[rockzilla]

I would advise you to save up as much as you possibly can, and then look at the person-to-person lending site prosper.com for the rest.

This is a site where people can lend money to each other (usually many people making small loans) and it "cuts out the middleman" of the credit card industry. People can get higher interest rates than they would in a savings account, and those borrowing usually will pay less.

You will have to enter your credit information, and it will give you a "grade" (I think A, B, C, but not sure) and then you can apply to borrow. People often include their personal circumstances (what they are borrowing for, if something happened to ruin their credit in the past, etc) to put a more "human" face on this.

Hope this helps

RZ

 

[fleur-de-lis]

Climbhigh, I agree with all of the points the posters before me said about avoiding financing. To approach it from the other side, have you explored the options to raise the money before Christmas? Assuming you''re young and hard-working, (1) getting a job on weekends or (2) even delivering pizzas a couple of times a week could help significantly. If you''re able to earn an extra $200/week over the next ten weeks, you''re nearly there. If you (3) look at what you own that you could sell on Ebay, you might be surprised at the "stuff" you have lying around. (Take a HARD look at your electronics in particular, you might hit the remaining balance by selling just a few items.)

Also, don''t forget the options of living very frugally for the next two months and spending less on a ring. The ring is just the first step in a lifetime spent together, and as long as it''s pretty and from you, the odds are very high that she''ll be thrilled no matter what you spend. That, and you will have decades to shower her with fine jewelry, and can be better situated to do so if you''re not paying interest on prior debt-- so getting a ring you can afford now really is win-win.

Good luck!

 

[basisforaday]

I agree not to go in over your head when purchasing your e-ring. However I financed my E-Ring. I had saved up 75% of the cost. I chose to have the ring made and put it on layaway until I was ready to give it. This way I was able make small payments when I wanted to. When I was ready I took the ring and financed it for one year without interest. This way I did not kill my savings account. I ended up paying it off in 6 months, but it was nice being able to make payments instead of emptying a savings account.

in conclussion look at what the stores have as an option for financing. Also they will be more willing to listen to your circumstances.

 

[phoenixgirl]

Are you able to get a credit card with a one-year 0% APR? You could then use the card only to purchase the ring (AND THEN DO NOT USE IT AGAIN!) and then pay $250 a month (or a little more just to be safe) over the next year.

I also agree that you should not purchase a luxury item if you do not have the cash to do it. My husband has purchased a couple of $2k or less bikes using the 0% credit card method, but only because we didn''t want to sell our investments and pay the capital gains taxes and didn''t have the cash at the moment, and we paid the $500 a month until it was paid off no matter what. But of course, we technically had more than enough money in the bank to buy the bikes.

If you can''t get a 0% APR credit card, then I think the credit gods are telling you something. You should never under any circumstances accumulate interest debt on a credit card balance. Perhaps you could borrow the money from parents/family members and employ the $250 a month repayment for a year plan? If this isn''t possible, then I think you should just wait. That''s what they did in the olden days.

The engagement ring should be a symbol of your desire to meld your lives together and of your ability to do so responsibly. It shouldn''t be a symbol of your inability to stay on top of your finances.

 

[Sabine]

Okay, sorry if I''m threadjacking here, but I''m confused. When both FI and I were buying cars, we both ran into credit issues because although neither of us had BAD credit, we both didn''t really have ANY credit history. So when he bought my ring, although he had the money in his savings to pay for it right away, he got a 0% APR card and payed it off over I think 8 months. And doing so has positively built his credit. I thought carrying a balance on a credit card but still making more than the minimum payments was the main way to build credit. If climbhigh is sure he is able to make regular payments and pay off the ring in a timely manner, wouldn''t that be a positive thing for his credit rating? Or am I just totally clueless (which I''m sure is totally possible)?

 

[MichelleCarmen]

Date: 10/8/2007 7:07:28 PM
Author: Sabine
Okay, sorry if I'm threadjacking here, but I'm confused. When both FI and I were buying cars, we both ran into credit issues because although neither of us had BAD credit, we both didn't really have ANY credit history. So when he bought my ring, although he had the money in his savings to pay for it right away, he got a 0% APR card and payed it off over I think 8 months. And doing so has positively built his credit. I thought carrying a balance on a credit card but still making more than the minimum payments was the main way to build credit. If climbhigh is sure he is able to make regular payments and pay off the ring in a timely manner, wouldn't that be a positive thing for his credit rating? Or am I just totally clueless (which I'm sure is totally possible)?

Your credit score depends upon paying your pmts on time AND also having your total combined debit less than 30% of your entire credit line. A person with $20K in available credit will find his/her score drop once debt goes above $6,000. There are more components too, of course.

One of my friends is a mortgage broker and he is shocked when clients have excellent credit with tens of thousands of dollars in credit card debit. It's all b/c they have extensive available credit lines.

 

[MichelleCarmen]

Is a $3K ring necessary at this time? I agree with the others that recommend picking out a diamond around .40-45. You can find a fabulous F/G SI stone for that price that will be dazzling. Later when you have more funds, you can purchase a larger stone and turn the .40ish stone into a pendant.

 

[Sabine]

Thanks for answering my question, MC!

 

[Eva17]

I would agree, not to go into debt for the ring. Perhaps a family member can loan the $ to you. Or start with a smaller size and have the upgrade to look forward to someday.

If you were denied, it could also be the ratio to income vs. your debt.


As Mc explained, you are not a good candidate even if you are making all your payments on time, if your ratio if off.

 

[climbhigh]

I guess it was wishfull thinking on my part. Yes , I pay all of my bills on time but the credit companies are looking at my history going WAY back , and perhaps they are also looking at my income/debt ratio as well. My girlfriend is the finest woman on earth to me and I did not want to be cheap with a ring , although she is the type to accept a ring with a piece of granite as a stone , as long as it''s from me. She has 4 sisters who have nice rings so I also did not want to have her wear a minescule little stone. Anyway , I guess I will save my pennies and shoot for another time.

 

[Eva17]

Perhaps Valentines Day will be a better time to aim for.

Good Luck and start saving your pennies.

 

[KimberlyH]

Climbhigh,

Had you considered purchasing a band as an e-ring, so you could stick to your timeline, and then a ring with a center stone for a wedding ring to give you more time to save up?

 

[climbhigh]

No , I haven''t considered that. When I do this I am going to do it right . No "take this for now" rings. I want it to be special so I am going to pick out a special ring when finances allow.