how do you finance your diamond?

[Elise]

Date: 6/25/2007 11:35:37 AM
Author: 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.

I don''t believe you can increase the credit limit for a card by transferring money into the credit card account. Credit limits are set by the card issuer depending on the creditworthiness of the individual. So if your credit limit is set at say, $5000, the bank may not automatically let you charge a $7000 purchase on it even if you do credit $2000 or more in the credit account.

What banks do do are provide temporary credit limit increases (please note that in certain jurisdictions, this may be subject to conditions e.g. purpose of charge). You can try to give your bank a call to see if they are willing to temporarily increase your credit limit for the purchase. Perhaps you may suggest that you credit the excess into the account prior to the purchase. In that way, the bank is still exposed to you only for the amount of the credit limit.

Alternatively, what you could do is split the price of the purchase amongst 2 or more credit cards with separate limits.

You might want to give a heads up to your bank to let them know that you are making a substantial purchase overseas. Some banks have policies to not approve huge overseas transactions (for fraud detection purposes) until they are able to verify the transaction with the cardholder.

 

[Nicrez]

Date: 6/25/2007 12:40:03 PM
Author: Elise

Date: 6/25/2007 11:35:37 AM
Author: 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.

I don''t believe you can increase the credit limit for a card by transferring money into the credit card account. Credit limits are set by the card issuer depending on the creditworthiness of the individual. So if your credit limit is set at say, $5000, the bank may not automatically let you charge a $7000 purchase on it even if you do credit $2000 or more in the credit account.

What banks do do are provide temporary credit limit increases (please note that in certain jurisdictions, this may be subject to conditions e.g. purpose of charge). You can try to give your bank a call to see if they are willing to temporarily increase your credit limit for the purchase. Perhaps you may suggest that you credit the excess into the account prior to the purchase. In that way, the bank is still exposed to you only for the amount of the credit limit.

Alternatively, what you could do is split the price of the purchase amongst 2 or more credit cards with separate limits.

You might want to give a heads up to your bank to let them know that you are making a substantial purchase overseas. Some banks have policies to not approve huge overseas transactions (for fraud detection purposes) until they are able to verify the transaction with the cardholder.

Yup, which was quite a shock when the ONE credit card (credit/debit) I use (I HATE credit and my MC from Citibank gives me 2 miles per $1) was declined for fraud purposes while shopping in Paris where I spent A LOT in one day. It hit a certain point and Citibank just stopped it. A nice call from the clerk and my speaking to a rep let them open up the card again, bbut for one brief moment not only was I embarrassed, but SCARED that my checking account had been tampered with. I know what is in my account at all times, thanks to online banking...

So I use my card for water just for my miles. But here in NY buying water is like buying an engagement ring really...LOL!

Good luck and congrats on getting to the stage of financing!

 

[goldenstar]

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.

Not to get too much off topic but I have to agree with this. I won''t go into it though, since its not the OP''s issue.

As for the original question, I''ve never heard of a vendor that wouldn''t allow the purchase to be split between cards. Thats what I would do if the price exceeded my limit.

 

[AdaBeta27]

If you belong to a credit union and have the cash deposited, you can take out a low interest loan against your own shares provided you always leave an amount on deposit that's equivalent to whatever you owe. Repaymemt terms and interest rates vary. The interest rates I've gotten have always been peanuts compared to credit card and bank loan rates. I've used this numerous times for a temporary loan for purchases that were some sort of "upgrade, " i.e I'm buying a better diamond or classic or whatever, and then afterward I'm selling the old/lesser to pay back all or some of the loan.

 

[majupa611]

I don''t think there is anything wrong w/ using a credit card. If my boyfriend and I waited until we had the cash to get an engagement ring, I would be in my forties. We both went to college, he just graduated from law school and i''m in nursing school. Debit is a part of our life. We aren''t willing to put everything on hold b''c of it. I was actually suprised at the strong opinions about the post. I think kissmark''s question was whether she could use more than one card--she wasn''t asking opinions on how she should spend her money or money she doesn''t have. I had had the same question and after searching to see if anyone had covered it, I was glad I hadn''t asked b''c the posts just made me feel bad.