how do you finance your diamond?

[Kissmark]

just wondering how people pay for their diamonds. for the one i''m looking at, it''s above my credit card credit limit, so do most people pay part in cash then put the rest on their credit cards? split between several cards? or use some kind of financing plan offered by the store? tahnks

 

[rainydaze]

my husband purchased a stone that was within his budget, i.e. one that allowed him to pay with what he had put away for it. i believe he put half down on his card at purchase, and half down upon pickup and paid the bills in full. even though, essentially, he paid cash, there is a benefit to using a card, which is consumer protection (if your particular card offers it) in case something doesn''t go right and the jeweler won''t resolve the issue. (not likely, but especially if you buy from a b&m, is handy)

because you are looking at a stone that goes over your credit limit, i will venture to assume it is a stone that is beyond your budget. this is a very personal thing here, so i will tread lightly, but hopefully you are about to ask a girl to marry you who respects and loves you and would happily accept whatever it is that you are able to afford to give her at this point in your life. after all, the real value of your proposal lies in the offer of a lifetime together. if that means a well cut 1/4 ct, so be it! if you buy from WF or GOG or others, you will have a great upgrade policy so that as your means increase as life goes on, the two of you can work towards the diamond you really wanted to give her. there is nothing worse than starting your married life out in heaps of debt!! as much as i love jewelry and diamonds, i would never have been able to enjoy my ering if my husband had gone beyond his means to get it for me. other things quickly become important after the engagement that take money.... the wedding, a home, car payments, bills, insurance, a family if that''s what you want, .......

 

[jstarfireb]

Do you have enough money in your account to pay for the diamond up front? If you do, talk to the jeweler about wiring the money to them. My fiance paid that way to get the discount from Whiteflash. I''m not sure if B&Ms offer a discount for this, but it may be worth it to ask.

 

[neatfreak]

Honestly it''s a really bad idea to put a luxury purchase on credit. Most of us paid cash for our stones by saving up until we had enough $ for them in cash.

It sets a precedent for the rest of your life that it''s no problem to spend beyond your limits. And that''s NOT a good way to start out a marriage.

I would recommend that you examine your budget, see what you can really afford, and AFFORD means that you can pay in cash, and get a stone of that size. Buy from a company with a great upgrade policy and in a few years once you''ve saved up some more $ you can get a bigger stone.

I don''t know if you''re buying for your GF or you are the girl demanding the stone. So if you are BUYING the stone for your GF, you should know that anyone who loves you for YOU and wants to marry you for the right reasons will take any ring you can provide for her even if it''s a teeny chip. And if you are the GF then you really need to reexamine your priorities if you''re expecting your BF to max out his credit cards to pay for your stone.

Sorry, just my .02

 

[Diamond*Dana]

My DH saved the money and paid with cash. I agree with the others...credit can be a very convenient way to pay, but it can also be quite dangerous. Good luck to you.

 

[Kissmark]

Hi thanks for your responses everyone. This is actually the girlfriend writing. Cashflow wise we can definitely afford the ring, but the point is that we don''t like to pay with cash, and would like to pay with credit card as much as possible for the proteciton/points/miles, etc. However the price exceeds the credit limit for 1 card (is it that unusual?), so I am wondering if people just pay part w/ cash and part w/ card, all cash, or split into 2 cards? sorry maybe the title is a bit misleading, maybe I should''ve asked How people pay instead of how people finance. thanks

 

[avlis]

if you truely have the cash lying around, and it is just a CC limit issue.. this is easy to solve. talk to you dealer about making a payment every 3 days. almost max out your card (you never want to go all the way to the max, those credit card folk are sneaky with fees and such), then go online and pay it right away (same day). it usually takes 2-3 business days to clear. Then reapeat this process until the purchase is complete.

although after re-reading your second post, you said you had the cash flow, not the cash. maybe wait a few months and save it up, after all, whats a few months when you''re about to commit the rest of your lives together (assuming it an engagemt ring you talking about, you never mentioned that either) ok after looking at your past topics, i guess the wedding is already planned, so there is no waiting.

 

[suzi]

Personally, I would never finance a jewelry purchase, not even an ering. If you have the cash to pay for the ring, and just want to use your credit card to build up your card benefits, then charge whatever you can charge and pay for the rest in cash. Then pay off the credit card bill in full when you get the first bill. I know a lot of B&M stores will offer financing, but you will end up paying a lot more for your ring in the end with finance charges and interest payments, so I''d resist the urge to do that. Same thing if you put the purchase on a credit card (or cards) and pay it off over time.

Others have given you good thoughts about upgrading and so forth. I would make sure that wherever you buy the diamond, they have a good trade up policy with the thought of future upgrades in mind. In the meantime, good luck and have fun shopping! Buying your ering should be fun!

 

[diamondseeker2006]

There''s nothing at all wrong with paying part cash and part credit card if that''s what you''re asking. You just won''t get the benefit of the wire (cash) discount if you are dealing with an online vendor that offers it. I don''t think the vendor will care at all if you combine cash and credit card.

 

[MWG]

If you plan on paying off the credit card immediately and getting the BONUS miles etc. is of great value to you, then do that. Of course you will not be getting the Bank wire DISCOUNT that most PS vendors give. I think the MAX, is 5% of the total cost.

 

[Kissmark]

Date: 6/24/2007 11:16:56 AM
Author: MWG
If you plan on paying off the credit card immediately and getting the BONUS miles etc. is of great value to you, then do that. Of course you will not be getting the Bank wire DISCOUNT that most PS vendors give. I think the MAX, is 5% of the total cost.

ah thanks for the info. i haven''t discussed payment options with the vendor and this discount was never brought up. I will make sure to ask for it.

 

[diamondseeker2006]

I just want to add one thought. I really totally disagree with those who are against financing a diamond engagement ring. Young couples, especially in college or recently graduated, may not have the cash saved for a ring. In our case, we got engaged the last year of college. My husband borrowed the money for a 1 carat diamond from his dad. He paid it back in 18 months. We have almost never carried a credit card balance (we use one now to get points and pay the full balance each month) and today our mortgage is paid off and we save and pay cash for cars because we have always been financially responsible. We are 100% debt-free and there was zero negative effect from borrowing to pay for that e-ring years ago. So my opinion is that if a young man can afford the monthly payments, there is absolutely nothing wrong with putting an engagement ring on a low interest credit card because that is a very special item and does not fall into the category of luxury items, in my opinion. Yes, fancy TV's, stereo equipment, furniture that goes beyond essentials, vacations, other jewelry, etc. are luxuries that should be saved for and then pay cash.

 

[Independent Gal]

If you have the cash, and are only worreid about going over your limit, then call your credit card company and say 'Yo yo yo, head's up! I want to put an engagement ring on my credit card. Will you let me go over the limit for this?' then if you have a good credit history with them and pay down your card every motnh, they will probably let you do it, either by letting you go over that one time or increasing your limit for you. I did this with a jewelery purchase once and they just said 'We'll just increase your credit limit'. No problem. But I have ALWAYS paid off my full balance every month. So, if you carry a balance that might not work? Worth a try though.

So long as they have good reason to think that you'll be paying it off right away, they probably won't have a problem with it. AFter all, they make 3% on your purchase right? So if they trust you to pay it, it's in their interest to let you do it.


Plus, they appreciate the head's up, as if you throw a huge purchase on there, the cc companies sometimes get nervous and want confirmation that it's YOU who's done it.

And yeah, the airmiles are hard to pass up if it's a dealer with no wire discount!

 

[neatfreak]

Date: 6/24/2007 11:33:41 AM
Author: diamondseeker2006
I just want to add one thought. I really totally disagree with those who are against financing a diamond engagement ring. Young couples, especially in college or recently graduated, may not have the cash saved for a ring. In our case, we got engaged the last year of college. My husband borrowed the money for a 1 carat diamond from his dad. He paid it back in 18 months. We have almost never carried a credit card balance (we use one now to get points and pay the full balance each month) and today our mortgage is paid off and we save and pay cash for cars because we have always been financially responsible. We are 100% debt-free and there was zero negative effect from borrowing to pay for that e-ring years ago. So my opinion is that if a young man can afford the monthly payments, there is absolutely nothing wrong with putting an engagement ring on a low interest credit card because that is a very special item and does not fall into the category of luxury items, in my opinion. Yes, fancy TV's, stereo equipment, furniture that goes beyond essentials, vacations, other jewelry, etc. are luxuries that should be saved for and then pay cash.

There's a difference between financing a ring and borrowing from a parent too though. I bet your husband didn't have to pay 19% interest on that loan from dad like many people would pay on a CC.

I think it works for some people, but in general, it is NOT a good idea to buy a luxury item on credit.

For Kissmark though: Sorry that we didn't understand what you meant. But really as nice as the miles are on your CC, depending on the vendor, you would be saving 5% of the purchase possibly by paying cash. THAT is worth so much more than a few CC points or miles.

 

[Margarw]

My two cents, for what it''s worth. When I grew up, my Mother always said, "if you can''t pay cash for it, you can''t afford it!" I still belive that is true, with the few exceptions of a home, and possibly a motor vehicle. CC''s are fine for true emergencies, OR, for extravagant purchases, IF you truly can afford the purchase, and placing the item on the card doesn''t lead to financial burden.

Kissmark, it''s been said several times that this is a dangerous website! And it is!!! There have been many polls regarding size of erings on this forum, but I haven''t seen any regarding the average age/income of regulars here on the board. I would venture a guess that most of us are 30-45 years old, and are two career (career v. job - there is a difference) couples, meaning that financially we tend to be established, with major purchases such as a home, a wedding, college tuition, etc., already out of the way.

I don''t mean to suggest that you and your fiance aren''t financially secure, I am just suggesting that it is easy to get "caught up" with what you want, versus what you can truly afford.

I would also venture to guess that most of us didn''t start our marriages with 2ct+ erings.

Credit card limits are generally based upon income and financial credibility and tend to be generous, since the bank is all about finance charges and over the limit charges. If the purchase of this ring is greater than your CC limit, I would have to say that you really can''t afford it. Even the healthiest marriages have stress, don''t add unnecessary financial burdens to the mix before you even get out of the starting gate!

Just my thoughts, for what they''re worth.

 

[Independent Gal]

I think Kissmark said that they HAVE the cash saved up, and she just wants to get the ring on a credit card to get the air miles, not for the actual ''credit''. So, presumably they would put it on the card, then pay it right off with the cash. Makes a lot of sense to me! If you HAVE the cash and are going to pay the card right off the same month before you''re even charged any interest, then that''s not ''going into debt''. That''s just getting a free flight with your e-ring.

Why NOT? I put EVERYTHING on my card (for the miles) then pay the ENTIRE balance every month. But I never put anything on my card that I couldnt'' pay for in cash. That just makes good financial sense. Builds your credit rating, and means I can visit my parents more often thanks to the free flights.

I completely agree that going into debt for jewelry, even for an e-ring, is a tricky proposition. But it sounds like that''s NOT what Kissmark is suggesting. Didn''t she say they have the cash?

Or did I misunderstand?

 

[iheartscience]

I was in the same boat as you, Kissmark. We wired cash for part and split the remainder between two cards so we could get miles. WF had no problem with us doing that, either.

 

[snlee]

If you can get a bank wire discount then I''d pay buy cash. Otherwise, I''d split it between two credit cards to get points, miles, etc.

 

[sep004]

My friend had the money to buy his now-fiance a lovely engagement ring, but found a great "no interest for 1 year" credit card or loan. He ended up putting his money into a higher-yield CD (which unfortunately isn''t an option right now with the low interest rates), then at the end of the year, paid off the engagement ring and had interest money from his CD to buy a beautiful wedding band for her. It was a great decision for him.

 

[jcrow]

Date: 6/24/2007 10:47:27 AM
Author: Kissmark
Hi thanks for your responses everyone. This is actually the girlfriend writing. Cashflow wise we can definitely afford the ring, but the point is that we don''t like to pay with cash, and would like to pay with credit card as much as possible for the proteciton/points/miles, etc. However the price exceeds the credit limit for 1 card (is it that unusual?), so I am wondering if people just pay part w/ cash and part w/ card, all cash, or split into 2 cards? sorry maybe the title is a bit misleading, maybe I should''ve asked How people pay instead of how people finance. thanks

have you called your cc company? sometimes you can up the limit. we did that when we purchased my car. we had the $ for it to pay for it upfront but wanted to get cc miles. we called the cc company and was able to up the limit significantly.

 

[Cehrabehra]

We got my stone from BN and paid for it with their 90 day same as cash credit line and paid it off by cashing out stock before the end of the 90 days. I stumbled on my stone and had to have IT asap before we''d liquidated money.

So essentially we paid cash. I went 15 years without a stone so we could not be in debt and invest elsewhere. I wouldn''t finance a diamond ring.

 

[SparklyDiamond]

Date: 6/24/2007 10:47:27 AM
Author: Kissmark
Hi thanks for your responses everyone. This is actually the girlfriend writing. Cashflow wise we can definitely afford the ring, but the point is that we don''t like to pay with cash, and would like to pay with credit card as much as possible for the proteciton/points/miles, etc. However the price exceeds the credit limit for 1 card (is it that unusual?), so I am wondering if people just pay part w/ cash and part w/ card, all cash, or split into 2 cards? sorry maybe the title is a bit misleading, maybe I should''ve asked How people pay instead of how people finance. thanks

I believe I have the same mentality as you, use card, save up points and pay it all off at the end of the month. Typically the saving from wire is more than that of credit card points. If your store say its the same either way, and paying by card is what you want, you can pay the card in advance, to get a negative balance, and then charge the diamond ring on it. That way you get the points, and the ring is paid off. Hope it helps.

 

[Cehrabehra]

I would call the CC company and tell them you want to purchase $xx.xx on the card and ask if they will up the limit to match that.

 

[Kissmark]

Date: 6/24/2007 12:52:19 PM
Author: Independent Gal
I think Kissmark said that they HAVE the cash saved up, and she just wants to get the ring on a credit card to get the air miles, not for the actual ''credit''. So, presumably they would put it on the card, then pay it right off with the cash. Makes a lot of sense to me! If you HAVE the cash and are going to pay the card right off the same month before you''re even charged any interest, then that''s not ''going into debt''. That''s just getting a free flight with your e-ring.

Why NOT? I put EVERYTHING on my card (for the miles) then pay the ENTIRE balance every month. But I never put anything on my card that I couldnt'' pay for in cash. That just makes good financial sense. Builds your credit rating, and means I can visit my parents more often thanks to the free flights.

I completely agree that going into debt for jewelry, even for an e-ring, is a tricky proposition. But it sounds like that''s NOT what Kissmark is suggesting. Didn''t she say they have the cash?

Or did I misunderstand?

Hi Independent Gal you did not misunderstand, that is exactly what I was trying to ask thank you!! I appreciate everyone''s input, but some seem to have mistundrestood my question. I guess money can be a sensitive issue, and the wording of my original post was not very clear either. Thanks everyone!

 

[frozengirl]

My husband and I just purchased an upgrade ring (kept original as well) from a local jeweler. We get bonus points for charging so we placed the down payment on CC rather than paying cash. We will make monthly payments (10 months free financing from jeweler) and put those on CC as well. Like you, we have the cash available, but wanted to get CC points.

 

[Krissie]

If you have the cash to afford it, but want credit card points (I totally understand that) I would simply call the CC company - they will more than likely raise your limit for this specific purchase. Then pay it off that month! Another option - some retailers will allow you to pay in installments if there''s no major rush in actually having the ring in your possession. With some B&M retailers, you can put 20% down to hold the ring, and they''ll hold it for a month or so - allowing you to make another payment or two.

 

[phoenixgirl]

Krissie had a good idea about calling your credit card company. See what they can do. I''d say something like, "We were about to get a card with another company since your limit isn''t high enough, but we thought we''d call you first to see what you can do." It seems like every time I''ve ever had to call about anything, they always say, "And we''re raising your limit by $1k," so I think the service reps have the ability to do that pretty easily.

Or you might apply for a no-limit card. Our American Express doesn''t have one. Of course, I''m not sure that''s great for our credit scores because although we always pay it in full, it doesn''t list a limit and therefore doesn''t improve our spending to limit ratio. But I think we have around $40,000 a month as the limit on our two other cards (hello, that''s nearly what I make in a year as a teacher, obviously they want us to get in debt but we are too smart for that!) so it doesn''t really hurt us. But it''s something to consider if you''ll need a good credit score in the near future.

 

[Madam Bijoux]

I only deal with places that do not impose finance charges. A lot of stores have arrangements that give you a year to pay the balance without any finance charges - that''s what I have always done.

 

[SuLi]

I just spoke to my FI about what he did - after he started his first job out of college (we are both now 27), he started putting money aside for future large purchases, such as a house, car, ring, etc.. So, my e-ring came from that fund - he purchased it without having to finance or put it on a CC.

 

[bee*]

D has the money in cash but he is going to transfer it all onto his credit card so that he can purchase the ring when we go to NY. Over here(in Ireland) whenever I''ve made an expensive purchase, Ive put all of my money into my credit card a/c (so essentially I have a credit balance on my credit card)-is there any possibility that you can do that? We don''t get points over here, so not sure if that effects your points or not.