Paying For Your Diamonds

[Bijouteried]

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.

Rakuten is my first stop for every online purchase!

 

[Fabulous50]

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.

My parents said the same thing. Like most of you, I have used a credit card to buy jewelry pieces from time to time, if I have the cash to pay it off immediately. Once I did a lay away for a similar reason that @RunningwithScissors said above. I found the perfect (to me) stone, my heart shaped diamond, before I had set aside enough to buy it, and I couldn't let it go! I was super tempted to use credit but it didn't feel right,.

 

[Dmndsr4evr11]

We do this too as long as the total cost does not exceed 50% of the credit line as not to ding the DTLR on our credit score then pay it off in full.

What is DTLR?

 

[blingmeupscotty]

What is DTLR?

The debt to limit ratio. If your Credit line is $500 for example, and you charge over $250. You get dinged on your credit report because you were using more than 50% of your credit line and they look at that as a way of living beyond your means.

 

[Redwoods-hiker-girl]

Cash (i.e., wire transfer).

 

[grosx2]

I just purchased a diamond from Whiteflash and paid cash, as the 3% savings from the wire transfer discount is better than what I can achieve with any of my credit card rewards.

 

[Dmndsr4evr11]

The debt to limit ratio. If your Credit line is $500 for example, and you charge over $250. You get dinged on your credit report because you were using more than 50% of your credit line and they look at that as a way of living beyond your means.

Thanks. I see. Got it. I use Amex as I want the points. I just pay in full when the bill comes.

 

[Ally T]

Mr T has always used his American Express for all of my jewellery, for the security against the purchase & also the points. His bill is paid in full every month, so technically he pays cash.

He has always said "If we don't have the money, we simply can't have it." That is certainly a mantra that has faired us well over the years!

 

[Alybetter]

Cash or not at all. I won't borrow money for discretionary things.

Agree. We only finance houses. (This explains why I only have modest diamonds and have recently switched to MMD)
Although I always use rewards credit cards of course, no need to leave free money on the table.