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Paying For Your Diamonds

Nikksyny

Rough_Rock
Joined
Sep 11, 2021
Messages
29
Hi everyone,

I am fairly new to the jewelry world and became very interested recently in upgrading my current diamond. I am conflicted right now between paying for a higher quality MMD or LD, but either one is pricey. I know this varies widely, depending on circumstances, but I'd love some feedback on how you pay for your diamonds.....cash you've saved specifically for the diamond purchase, credit card with 0 percent interest, financing with the company, etc?

Thanks everyone!
 

yssie

Super_Ideal_Rock
Premium
Joined
Aug 14, 2009
Messages
23,568
Credit and pay it off. So - cash in full behind the scenes but I’ll take those CC points pleaseandthankyou ::)
 

kb1gra

Brilliant_Rock
Joined
Jul 6, 2012
Messages
1,056
Pay with card, pay it off when the charge posts.
I don’t save specifically for jewelry but spend from savings if I see something I want.
 

chere

Rough_Rock
Joined
Oct 10, 2021
Messages
21
Congratulations on saving up to make your upgrade a reality! I know it takes sacrifice and there are so many trade-offs you need to make to stick to the goal.

This goes for diamonds and most purchases I make, I have the cash but I will purchase on the credit card for rewards points or cash back. My credit cards do not have annual fees.

I will take advantage of 0% interest periods for larger purchases, make the minimum payments and pay it off in full when the balance is due. I’d rather keep the cash in my savings account and invest it into stocks where I’ll get a 3-6% dividend or return. The interest on GICs really low but I'll come out ahead.

I will finance with the company if it's 0% interest, it doesn’t impact my credit rating and the account doesn't appear permanently on my credit report. This is not likely since it’s like a department store credit card or loan. But worth asking the question before you apply.

I use Rakuten for additional cash back if it’s available.
 

tyty333

Super_Ideal_Rock
Premium
Joined
Dec 17, 2008
Messages
24,624
Saved Cash...I would never borrow for a luxury item. I would use a CC if it fiscally made sense (saved me money by earning points...
haven't done it though).
 

Kaycee2018

Brilliant_Rock
Premium
Joined
May 14, 2018
Messages
910
I pay with a credit card with the best rewards points (bonus is credit cards offer additional buyer protection if you encounter any issues) and pay the balance before the due date so no interest is charged. It is never advisable to go into debt for jewelry.
 

RunningwithScissors

Ideal_Rock
Joined
Apr 29, 2019
Messages
2,421
I have a "Sparkly Fund" that I add to over time. I put money in it from my side hustles and unexpected bonuses. Its a mad money account. Also, I ask for gift certificates from relatives for the holidays for my favorite vendors.

So, like the others have said, my husband and I use cash to pay for new sparklies. Usually, I don't use a credit card (even one with cash back rewards) because many vendors give a 3% discount for bank wires. I will use a credit card (that I pay off immediately) if I buy from vendors like TheRealReal or Fashionphile who don't offer bank wire discounts.

I did do a 3 moth payment plan once with Whiteflash because I needed a particular, rare-sized diamond that they had in their inventory that matched a diamond I already owned (for stud earrings). I knew if that diamond sold before I had the cash for it saved, I'd be SOL. There were no interest charges and I knew I was going to have the money needed in the time allotted. Everything worked smoothly and I ended up paying it off early.
 
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Nikksyny

Rough_Rock
Joined
Sep 11, 2021
Messages
29
Thanks for your feedback everyone. I really really want to go the option of putting it on a 0 percent interest credit card and make sure it is paid off before the rate expires. But it still counts as putting it on a credit card, so it feels too irresponsible.
 

LLJsmom

Super_Ideal_Rock
Premium
Joined
Oct 24, 2012
Messages
11,678
Charge if allowed to get points, and then just pay it off when the bill comes. However, if you get a discount for a wire transfer, I'll do that too if its a vendor I trust.
 

Sprinkles&Stones

Brilliant_Rock
Joined
May 19, 2020
Messages
1,378
Great thread, I have often wondered how people pay for diamonds especially when it’s an online transaction. Thanks for sharing!
 

yssie

Super_Ideal_Rock
Premium
Joined
Aug 14, 2009
Messages
23,568
I really really want to go the option of putting it on a 0 percent interest credit card and make sure it is paid off before the rate expires. But it still counts as putting it on a credit card, so it feels too irresponsible.
Why?
 

MRBXXXFVVS1

Brilliant_Rock
Joined
Dec 5, 2019
Messages
1,413
With the exception of an engagement ring, which can be quite expensive and a big purchase, I actually don't believe in "saving" for luxury items. If I can't make the purchase outright in cash without "saving" for it, then I can't afford it and I should be "saving" more money for savings/investments. My parents also instilled in me that if I can't afford to lose, break, or ruin something, that also means I can't afford it.
 

tyty333

Super_Ideal_Rock
Premium
Joined
Dec 17, 2008
Messages
24,624
Thanks for your feedback everyone. I really really want to go the option of putting it on a 0 percent interest credit card and make sure it is paid off before the rate expires. But it still counts as putting it on a credit card, so it feels too irresponsible.

It's not irresponsible. It's smart to use "other" people's money for free. The problem is that it takes discipline to make yourself pay it off before you are hit with an interest fee. Don't do it unless you have that discipline and know that you can pay it off before interest rate take affect.
 

Austina

Ideal_Rock
Premium
Joined
Feb 24, 2017
Messages
5,961
Pay for everything on CC, not just for the added security, but also the air miles, and the bill is paid in full as soon as it’s due.
 

kb1gra

Brilliant_Rock
Joined
Jul 6, 2012
Messages
1,056
I only use 0% offers if I have the cash and just want to use the float for some reason, such as not taking funds out of an investment until the following tax year, or having a good run in the stock market or other similar things. My American Express has pretty much a constant 0% offer and I do use it sometimes, chase now has the “my chase pay” feature with no interest if you qualify. The cash is always there, I just don’t pay for it with my money unless I have to or to get a wire transfer discount.
 

PreRaphaelite

Ideal_Rock
Joined
Feb 2, 2015
Messages
3,199
I buy using a CC for a lot of reasons, but none of them are to finance purchases. I have missed some amaaaaaaaaaazing pieces because of my preference to buy only what I can afford, and for a fair price. But them's the breaks. Buy, get it home, decide whether to keep or return, and then pay off the card right them if it's a keeper piece.

Some people say the true measure of financial literacy is being skilled at leveraging debt. But that's for people who want to do that, and I don't. Just my thoughts
 

vintageinjune

Shiny_Rock
Joined
Jan 4, 2012
Messages
489
So far all but one purchase for jewelry have been made in cash, I did a layaway for 4 months once upon a time, but I would not be opposed to having the cash in the bank but taking out a 0% credit card, and setting up auto pay to ensure the entirety would be paid off within the interest free time frame for other people, as for me... maybe.
 

swaye2010

Brilliant_Rock
Joined
Nov 16, 2015
Messages
1,151
I use PayPal credit and any purchase over $100 will give you zero interest for 6 month’s. You can pay the minimum payment each month but you must pay the total off at the end of 6 month’s. This way it helps break up the payment a bit. I would never pay any interest or buy a piece of jewelry I couldn’t afford. This just gives a little breathing room so you don’t get hit with the expense all in one month.
 

elle_71125

Ideal_Rock
Premium
Joined
Jan 29, 2012
Messages
5,257
I have a bling fund but I usually pay with my CC to receive those CC points. Free flights anyone? Then I just go in and pay off the bill with my reserved funds. It’s a win win.
 

tkyasx78

Brilliant_Rock
Premium
Joined
May 28, 2017
Messages
1,553
Unless there is a cash discount and I 100% trust the business, I always pay with a card that will get me money back. Then you take the cash and pay the card off once the charge posts.
 

heididdl

Ideal_Rock
Joined
Oct 25, 2012
Messages
2,778
Hi everyone,

I am fairly new to the jewelry world and became very interested recently in upgrading my current diamond. I am conflicted right now between paying for a higher quality MMD or LD, but either one is pricey. I know this varies widely, depending on circumstances, but I'd love some feedback on how you pay for your diamonds.....cash you've saved specifically for the diamond purchase, credit card with 0 percent interest, financing with the company, etc?

Thanks everyone!

Cash
 

tocranjo

Rough_Rock
Joined
Jul 12, 2014
Messages
91
Credit and pay it off. So - cash in full behind the scenes but I’ll take those CC points pleaseandthankyou ::)

Right?!?! Apple Card gives the cash back instantly --not at the next billing cycle or once year. I get it at the time of purchase. ;-)
 
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