Engagement Ring Financing

Quote:

Originally Posted by Anonymous Can someone explain how this works if you have less than stellar credit?

Ofcourse, when you have poor credit, any financing would cost your dearer than normal loans. If you're about to finance an engagement ring, read the fine prints regarding repayment policies, returning policies of the item and other terms and conditions before signing the paper.

Thank you for your response...but is it doable?

Try crown jewellers....they dont check credit

Jeweller financing is usually done thru an in store card..you are subject to credit approval.

Thanks...i just find this so depressing. I've saved enough for a good down payment, and i've handled my debt well for a few years now, but i can't seem to get anything done because i have no revolving credit...i've tried, and was recently denied a credit card. I have a current car loan (though only a few months old) and current student loan with no lates. But I have 3 aged collections, all at least 4 years old now, that i have either paid or am paying down. I feel hopeless like i can't do anything in life any more because of this. i don't know what else to do.

Did you google crown jewellers?

Or, Kay Jewellers Card.

Save up and pay cash.

No woman wants her future husband going into debt for a ring. My e-ring cost $500 and it's perfect. It's "me" and he picked it out himself. I was proud of him for spending below his (our) means and not wasting a fortune on jewelry.

If you can't pay cash for it, you can't afford it.

Applauds....

Also check out the pawn shops....you can find some great buys there.

Traditional lenders typically don't like to finance rings because 1) it's not easy to repossess a ring if you don't pay, and 2) there's a tendancy to stop paying for the ring if the relationship goes sour. For those reasons, they basically treat the loan as unsecured and evalute your credit-worthiness as if they were giving you a signature loan without any collateral (ie lenders are a little more picky about collections and such when giving out unsecured loans).

Other than the suggestions already offered (finding a jeweler who offers in-house financing, or pawn shops, or paying cash outright), I'm afraid I don't have any better suggestions. Just wanted to shed some light as to why banks don't like to finance rings.