Tag: Engagement

Advertiser Disclosure

Best of, Life Events, Personal Loans

Top 4 Personal Loans for an Engagement Ring

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Engagement ring

Updated November 08, 2017
Getting engaged is an exciting yet nerve-wracking milestone. You’re eager for your partner to say “yes” and hoping she’s impressed by what she sees when you open the box.

The best way to afford the ring of her dreams is planning early and saving up. Financing an engagement ring should be your absolute last resort. After all, there are other larger expenses that come after marriage including moving, buying a home or starting a family that you could spend that money on instead.

Still, if you decide financing is right for you, here are a few personal loans that provide funds for engagement rings:

Earnest

Rates from 5.25% APR

Earnest has the lowest interest rate of the loans on our list and no origination fee. Loan terms are 1, 2 and 3 years. Earnest will lend you $2,000 to $50,000. Other than your credit score, Earnest will look at your income, education, earning potential and other factors to decide if you’re eligible for the loan. There’s no origination fee and no prepayment penalty. There is, however, a hard pull of your credit report.

Earnest could be a good option if you have limited credit history, but an offer letter or current position that pays you more than enough money to cover loan payments. After submitting an application, you’ll get a response within 2 business days.

LendingClub

Rates from 5.99% APR

LendingClub is a peer-to-peer loan marketplace where people who need to borrow money are matched up with investors. You can get a loan for up to 5 years. You can borrow up to $40,000. The origination fee is 1% to 6%. Your origination fee is assigned based on your credit profile. The higher your credit score the less you’ll pay for origination. You can check to see if you’re approved and your rate without harming your credit score.

After applying for LendingClub, peer investors will see your profile in the marketplace and hopefully fund your loan. Once your loan is funded by investors and your application documents check out, you’ll get the money wired to your account.

To get the very best rates through LendingClub you’ll need an excellent credit history, low debt-to-income ratio and a high credit score among other factors.

LendingClub loans are not available in Iowa or West Virginia.

Lending Club

APPLY NOW Secured

on Lending Club’s secure website

Karrot

Karrot is not currently offering new loans. Should you have an outstanding loan, Karrot states they are still servicing those loans.

Karrot gives out personal loans from $5,000 to $35,000. Loan terms range from 3 to 5 years. The loan has an origination fee of 1.05% to 4.75% that’s non-refundable and deducted from the loan upfront. Karrot doesn’t charge prepayment penalties. Other than origination, fees will only come into play if you skip out on a payment, have a check returned or request copies of your loan documents.

Shopping for loan rates on the site won’t ding your credit score. Karrot doesn’t go into specifics about the credit score you need to qualify, but you do need to at least have a credit history and a bank account to verify your income.

Prosper

Rates from 5.99% APR

You can borrow as little as $2,000 and up to $35,000 from Prosper, another peer-to-peer lending marketplace. Loan terms are 3 and 5 years. Prosper loans have a 1% to 5% origination fee, but no prepayment penalties.

At a minimum, you must have a 640 FICO score to qualify for Prosper. You also need to have a debt-to-income ratio less than 50%. Shopping for rates with Prosper won’t impact your credit score either.

Honorable Mention – LendingKarma

LendingKarma isn’t a lender. Instead, it’s a site that manages loans between people who know each other. As a rule of thumb, you should avoid borrowing or lending money to friends and family since involving money in relationships tends to cause drama.

But, if someone you know agrees to help out and you’re both on the same page, LendingKarma can make your life easier. LendingKarma takes care of the logistics of borrowing including the contract, payment schedule and friendly reminders. The fee for contract administration is paid one time and $50 to $100 per loan.

Final Thought

Financing an engagement ring is not something we recommend. It’s just not worth going into debt over. Explore all of your options instead. Here are a few:

  • Get what you can afford in cash now and upgrade when you have more money.
  • Try unclaimed diamond and discount jewelry stores to get a deal.
  • Skip the diamond altogether for gems that are a little more affordable like amethyst or sapphire. These gems are popular now anyway.
  • Buy a stone similar to a diamond like moissanite or a replica until you can get a real one. If you choose a “fake” starter ring, make the decision as a couple. You don’t want her to find out from another source that her ring isn’t a true diamond.

At the end of the day, an engagement ring is supposed to symbolize commitment. Sadly in some ways it’s morphed into a symbol of status. That doesn’t mean you should feel pressured to get a ring (or ask for a ring) you can’t afford. Do what’s best for you.

Taylor Gordon
Taylor Gordon |

Taylor Gordon is a writer at MagnifyMoney. You can email Taylor at taylor@magnifymoney.com

TAGS: ,

Advertiser Disclosure

Life Events, News

4 Ways to Avoid the Growing Cost of Engagement Rings

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

4 Ways to Avoid the Growing Cost of Engagement Rings

Four years ago this New Year’s Eve my then-boyfriend got down on one knee at a concert in New York City and popped the question. While he was in good company — Christmas and New Years tend to be the most popular days for engagements to happen — to be fair we also met on New Year’s Eve, so he was using the day as a sort of two-for-one romantic package deal.

Of course popping the question (and spending those agonizing seconds waiting for a response) comes after you’ve found the perfect ring. Unfortunately these days, that perfect ring tends to come with a not-so-perfect price tag. According to findings from wedding resource The Knot, engagement ring spending is at an all-time high, with men spending an average $5,978 for that sparkler, up from $5,403 in 2013.

We don’t know about you, but spending the first couple of months as an engaged couple in debt over a piece of jewelry doesn’t sound like a lot of fun to us. There are some easy steps you can take to cut back on ring costs, and still wind up with something you’re both proud of. Consider some of the follow cost-cutting ideas:

1. Buy at the right time

It is possible to save some cash on your engagement ring without buying a sub-par diamond, and it’s all about timing. Since sellers know that winter is the more popular time to propose, they can really up those prices when the weather turns cold. Instead, start your shopping in the summer for better discount options.

2. Think outside the diamond

Sure, diamonds could be a girl’s best friend — but might she also love a just-as-beautiful, cheaper bauble in her engagement ring? Consider her or your birthstone, a pearl or some other gemstone that she has always adored. She’ll be unique and you’ll save a little cash.

3. Expand your search parameters

A diamond with a little history behind it might be just what your fiancé ordered. Estate sales and even eBay are great places to shop around for beautiful, pre-loved rings at big discounts.

4. Run the numbers

Can you really tell the difference between one full carat and a .9-carat diamond? Unless you’re a jewelry dealer, the answer is probably not. Skimming off just a little bit of diamond size may end up providing you with a nice discount. If it’s the difference between a .9-carat ring with a couple extra hundred to throw towards the wedding or honeymoon or a full carat and a full price, we’re betting you can guess which one makes more fiscal sense.

For more on how to save on engagement rings, check out this piece for a full 23 ideas.

Cheryl Lock
Cheryl Lock |

Cheryl Lock is a writer at MagnifyMoney. You can email Cheryl at cheryl@magnifymoney.com

TAGS: ,