How to Finance Your Engagement Ring in 2025

Popping the proverbial question "Will you marry me?" can make even the bravest souls tremble as they kneel with an engagement ring in hand. But a proposal isn't the only potentially fraught moment in a relationship — just ask the countless partners who've been hit with sticker shock as they shop for an engagement ring. These dazzling displays of commitment often carry a price tag in the thousands, leading lovebirds to ask another all-important question: "How are we going to pay for this?" 

Thankfully, there are plenty of options for financing engagement rings, including personal loans. Learn how financing engagement rings works, the pros and cons, and the options you have for funding your purchase.

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What is the average cost of an engagement ring?

The average cost of an engagement ring in 2024 was $5,200, according to wedding planning website The Knot. However, that $5,200 price tag is a nationwide average — the average cost of an engagement ring varies by region. For example, buyers in several states including New York, Pennsylvania, New Jersey, and Delaware spend an average of $6,900, and lovebirds in many Midwestern states spend an average of $4,900. 

Diamond-specific factors also affect the cost of your ring, such as:

• The weight of the diamond in the ring (carat) 
• The diamond's cut, clarity, and color;
• The ring style and design
• The band material (platinum, white gold, yellow gold, rose gold, etc.)

Each factor can increase or decrease an engagement ring's cost. For example, a ring with a diamond that has perfect cut, clarity, and color will typically cost more than a ring with a diamond of equal weight but flaws in its cut, clarity, and color. 

And, generally speaking, rings with lab-grown diamonds are cheaper than rings with natural diamonds. 

How much should you spend on an engagement ring?

Understanding the average cost of an engagement ring inevitably leads to questions about how much you should spend. A long-running marketing campaign by De Beers recommended spending an amount equal to three months of your pay, but that approach isn't a concrete rule, says Linda Ta Yonemoto, a certified financial educator (CFEI) and founder of Good for You Money. 

"Instead of following an outdated salary-based rule, I recommend a values-based rule," she says. “Ask yourselves this question: 'What can we comfortably afford without delaying our other financial goals, like paying down debt, building an emergency fund, saving for a home, investing for retirement, etc.?'”

While taking a measured approach to how much you spend can be difficult amid the zeal of buying an engagement ring, the long-term benefits are worth it, says Dr. Annie Cole, founder of Money Essentials for Women. 

"The truth is, whatever financial decisions we make will impact us down the road," Cole says. “The real question you should be asking yourself is this: How much can I spend on this engagement ring and feel financially comfortable with that amount? How will spending this amount impact my savings or debt balances for the coming months or years?”

How does financing an engagement ring work?

Because engagement rings are relatively expensive, the average consumer might have to turn to financing to pay for the ring upfront. Financing an engagement ring presents multiple borrowing options, such as personal loans, jewelry store financing, credit cards, buy-now-pay-later (BNPL), or savings. Knowing how financing works helps you understand what's required during the process and how long it might take.

Application process

The exact process can vary depending on which type of financing you choose. If you're applying for new credit, such as a loan or BNPL, you typically request a borrowing amount, provide the information the lender wants, and wait to see if you're approved. 

The lender will also provide the terms, which typically include:

• The approved loan amount
• Annual percentage rate (APR), combining interest rate and any upfront lender fees
• Monthly payment
• Length of repayment term 

Depending on the lender and account type, approval could come through the same business day or take up to a few business days. 

Credit requirements

Most lenders require a minimum credit score from their borrowers. For personal loans, the minimum score is typically higher than 640. Jeweler financing and credit cards (for new borrowers) may have more restrictive or lenient credit-score requirements. 

Repayment term

How long you have to pay back your ring will depend on the type of financing you choose. Repayment terms could be anywhere from six months to seven years, or, in the case of a credit card purchase, may not have a set repayment time. 

Restrictions

Typically, your lender won't restrict the type of ring you can buy. However, if a jeweler offers engagement ring leasing, certain purchases may be prohibited, such as loose diamonds or custom rings.

Pros and cons of engagement ring financing

Pros

• Makes buying a ring possible if you can’t pay in cash: Most consumers don’t have enough money saved up to pay for an engagement ring in cash, so financing provides a way to make the purchase. 
• Multiple options to choose from: Engagement-ring shoppers have a variety of funding options available to them, including jewelry store financing, credit cards, BNPL, and personal loans. 
• Zero-interest offers: Buyers with steady finances and solid income can take advantage of 0% offers from jewelers or credit cards that allow them to pay back their ring without interest charges, provided they pay off their account by the end of the promotional period. 

Cons

• Added debt to start your marriage: Borrowing money to buy an engagement ring could put your finances on unstable ground if you don’t take a measured approach to how much you spend. “Starting your marriage with unnecessary debt over a ring is like laying the foundation on quicksand. It’s romantic to want to mark the moment with something special, but the size or cost of the ring should never outweigh your long-term financial well-being as a couple,” Yanemoto says. 
• Deferred-interest offers could be expensive: The deferred-interest promotions jewelers offer through store credit cards typically backfill your interest payments if you can't pay down your entire balance by the end of the promotion. As a result, your payments can go up over time, and your repayment term can be much longer than the initial proportional repayment period. 
• May have to return the ring if you default on lease payments: If you lease a ring, the company providing the lease owns your ring until you make all your scheduled payments or exercise the lease's purchase option. If you can't make your payments, you could lose your ring. 

Ways to finance an engagement ring

Personal loan

Personal loans provide funding you can pay back through fixed monthly payments over two to seven years, in most cases. Some lenders offer personal loans without any upfront or late fees. Also, Federal Reserve data showed the average interest rate on two-year loans at 11.66%, which is considerably lower than the average credit card rate (21.37%). 

"Personal loans might be better than credit cards or BNPL, especially if you go through a local credit union or community bank you already have a relationship with," Yonemoto says. “They may offer lower rates.”

In addition to banks and credit unions, personal loans are also available from online lenders. Some lenders, such as LightStream and Citibank, offer personal loans specifically for engagement rings. Many others offer personal loans that you can use to pay for major purchases. 

Best for:

Borrowers with good credit or those who need low monthly payments at competitive rates. 

How to qualify:

You'll need to apply for a personal loan before you buy your engagement ring. You'll need to fill out an application that may require you to provide income documentation. Application decisions can happen as fast as a few seconds but can take as long as two to five days.

Jewelry store financing

Jewelry stores typically offer multiple types of financing to help fund your engagement ring purchase. For example, several leading jewelry companies provide deferred-interest financing through a store credit card, BNPL, and leasing. In some cases, jewelry stores may offer installment loans, too. 

Best for:

Buyers who can pay back their ring in one year or less to take advantage of 0% deferred-interest offers from their jeweler. 

How to qualify:

Depending on the type of financing you choose, you might be able to apply for an account before you make your purchase. Otherwise, you can sign up for a lease or in-store financing on the day of your purchase. Qualification requirements will vary based on the type of financing you choose. 

Credit cards

The average interest rate on credit cards was 21.37%, according to the Federal Reserve, making them a relatively expensive way to borrow. However, if you're shopping for an engagement ring and have a good credit score, you may be eligible for 0% purchase APR offers from credit card issuers. Through these offers, you don't have to pay interest on your purchases during the 0% period, which typically lasts 12 months or more. Just remember that after the introductory period ends, the card's regular APR takes effect.

Best for:

Borrowers who can prequalify for long-term 0% offers or have cash rewards they can redeem to reduce the cost of their ring.

How to qualify:

Fill out an online application for the card you want. Decisions are usually made in seconds but can take up to a few days.

Compare: Personal Loans vs. Credit Cards: Which Is Better? 

Buy now, pay later (BNPL)

BNPL services let you make a purchase online or in-store and repay it over several payments without interest or via longer repayment terms that charge interest — 36 months, for example. Your ring's cost is typically split up into equal payments that you make one at a time, first on the day of your purchase and then at regular intervals. BNPL options usually show up on your online transaction's payment page, or you can pay with a BNPL for in-store transactions (when available). 

BNPL programs usually provide an instant decision about your eligibility after you apply. From there, you'll make your first payment and receive details about your payment schedule. 

Best for:

Ring shoppers who need to split up ring payments over a short period of time or can’t qualify for other types of funding.

How to qualify:

When you’re ready to pay for your engagement ring, select BNPL as your form of payment for online transactions or present your BNPL to the cashier for in-store transactions. When you choose BNPL, you’ll go through a quick application process (if you haven’t already applied), and a decision should arrive in seconds. 

Savings

Savings can be a great way to pay for an engagement ring because you won't have to sign up for new credit or worry about fees and interest payments. If you decide to buy your ring this way, consider leaving enough savings in your account to serve as an emergency fund. For those who have a significant amount of money in savings and plan to propose in six months to a year, moving your cash to a high-yield savings account (HYSA) can help you earn a return on your money that you can put toward your ring purchase.

Just be aware that you might have to pay an early withdrawal penalty if you withdraw funds before they reach maturity, so check the fees and terms carefully.

Best for:

Ring shoppers with enough money saved up to pay for their ring in cash. 

How to qualify:

Using your savings to pay for an engagement ring doesn’t require any qualification. If you choose to open a HYSA to earn interest before you propose, you may have to meet minimum deposit requirements to open your account. 

How to compare engagement ring financing options

With so many options for engagement ring financing, it helps to view them through a four-part comparison: 

• Fees: Some personal loans and jeweler financing options will charge you a fee or fees for borrowing. For example, a personal loan lender might charge an origination fee that's a certain percentage of what you borrow, and a jeweler may charge you a transaction fee for a promotional plan. Ideally, you want to find an engagement ring funding option that doesn't charge any fees. 
• Rates: A high interest rate leads to a higher monthly payment and will, over time, result in considerable total interest fees over the life of your financing. Do your best to get funding from lenders with the lowest rates. A quick way to do this is to prequalify with multiple lenders and compare the rates they quote you. Just remember that prequalification results don't represent offers of credit and may differ from the rates and terms of a formal loan offer.
• Monthly payment: How much you pay each month for your engagement ring will vary widely depending on which option you choose. So, make sure you select a funding source that results in a monthly payment you can comfortably afford. 
• Repayment term: Borrowing options with longer repayment terms typically have lower monthly payments, and vice versa. However, it’s important to keep in mind that deferred-interest offers with short repayment terms can put you at risk of not paying off your ring before the promotional period ends. If that happens, your lender will add all of your deferred interest to your balance. 

When comparing engagement ring financing options, the goal is to find the option that gives you the best mix of the factors above, Cole says. 

"If you're going to finance your engagement ring purchase, explore all of your options before making a decision," she says. "Look for the option that comes with the best interest rate (potentially 0% APR if possible) and monthly payments that fit with your income and monthly budget. Look out for upfront or added fees, and look for a payment plan timeline that also fits within your overall budget."