Jewelry financing

[jmarshall]

I know, might not be the best move, but I'm looking into it. What are the best operations for this? What are the interest rates?

 

[bcavitt]

Unless a jeweler is giving up a portion of the proceeds from the financing to buy down the interest rate, most consumer credit is north of 18% APR. We use Springhill (the former American General), but looking into programs from GE Money and Wells Fargo doesn't fare any better. Best option is your credit card if it can handle it. Better options may be a personal loan from your bank/credit union or a home equity loan from same.

Bryan Cavitt
Images Jewelers

 

[rubybeth]

I believe of Pricescope vendors, Whiteflash (www.whiteflash.com), Good Old Gold (www.goodoldgold.com), James Allen (www.jamesallen.com), and Blue Nile (www.bluenile.com) offer financing, with varying terms based on your eligibility. I have also heard the suggestion to use a lower interest rate credit card for the ring, and just pay it off as you would any other bill. I would also suggest that you go with a vendor that has an ugrade policy you are comfortable with, so if a more expensive stone isn't in the budget right now, but will likely be in a few years, they can be handy to have.

 

[rearadmiral]

I know, might not be the best move, but I'm looking into it. What are the best operations for this? What are the interest rates?

Please try to avoid debt for jewelry You would be so much better off saving for months/year/s than by getting a very high interest loan or using your CC.

 

[flamingoezz]

Personally, I applied for an AMEX with no interest for a year. I put half down on my GFs ring, and will take my tax refund to pay most of the rest. I'll have to make a few more payments, but should have it paid off within 6 months or so.

 

[zuwood]

Use a credit card company that has a intro period APR and no annual fees, Figure out what you can save per month for the ring multiple that by the amount of interest free months the cc company company gives you and you have you budget for the ring. Just try to have it paid off by time the interest free period ends

 

[jmarshall]

I know, might not be the best move, but I'm looking into it. What are the best operations for this? What are the interest rates?

Please try to avoid debt for jewelry You would be so much better off saving for months/year/s than by getting a very high interest loan or using your CC.

I know this, but tired of saving and want to pop the question. I just got off the phone with my Credit Union, they will loan me up to 12K unsecured with a 9% interest rate. Any chance I would beat that financing through any of the vendors?

 

[zuwood]

I know this, but tired of saving and want to pop the question. I just got off the phone with my Credit Union, they will loan me up to 12K unsecured with a 9% interest rate. Any chance I would beat that financing through any of the vendors?

http://www.creditcards.com/0-apr-credit-cards.php

this is a much better route that way you dont pay interest right way, find a card from here that has a long intro period

 

[rearadmiral]

I know this, but tired of saving and want to pop the question. I just got off the phone with my Credit Union, they will loan me up to 12K unsecured with a 9% interest rate. Any chance I would beat that financing through any of the vendors?

http://www.creditcards.com/0-apr-credit-cards.php

this is a much better route that way you dont pay interest right way, find a card from here that has a long intro period

If you choose to go with a 0% intro CC, bear in mind if you don't pay it off in its entirety you will get hammered for every cent of interest you would have owed during the entire period.

 

[SB621]

This might not help at all but I know some places like Jewels By Erica Grace have a paypment plan with 0% interest.

 

[zuwood]

If you choose to go with a 0% intro CC, bear in mind if you don't pay it off in its entirety you will get hammered for every cent of interest you would have owed during the entire period.

This not true of credit cards taken from banks directly meaning not thru stores (ex bestbuy), what ever your balance is the day your period ends is what you start paying interest on.

With that being said the object is still to spend an amount you can afford to have to paid off before the intro period ends

 

[jmarshall]

If you choose to go with a 0% intro CC, bear in mind if you don't pay it off in its entirety you will get hammered for every cent of interest you would have owed during the entire period.

This not true of credit cards taken from banks directly meaning not thru stores (ex bestbuy), what ever your balance is the day your period ends is what you start paying interest on.

With that being said the object is still to spend an amount you can afford to have to paid off before the intro period ends

Anyone know what they mean when they say "Excellent Credit"?

 

[ncpalafox]

opened up a new credit card, offered 0% for a year along with 1.5% rewards, meaning if i pay it off within the year, not only did i not have to pay interest, but my CC company offers me cash back (aka discounted e-ring)

edit: forgot to mention bonus rewards credit just for spending $XXX within the first 3 months. gotta love these perks

 

[Dancing Fire]

If you choose to go with a 0% intro CC, bear in mind if you don't pay it off in its entirety you will get hammered for every cent of interest you would have owed during the entire period.

This not true of credit cards taken from banks directly meaning not thru stores (ex bestbuy), what ever your balance is the day your period ends is what you start paying interest on.

With that being said the object is still to spend an amount you can afford to have to paid off before the intro period ends

Anyone know what they mean when they say "Excellent Credit"?

if your FICO score is above 750 = Ex credit.

 

[diamondseeker2006]

I know, might not be the best move, but I'm looking into it. What are the best operations for this? What are the interest rates?

Please try to avoid debt for jewelry You would be so much better off saving for months/year/s than by getting a very high interest loan or using your CC.

I know this, but tired of saving and want to pop the question. I just got off the phone with my Credit Union, they will loan me up to 12K unsecured with a 9% interest rate. Any chance I would beat that financing through any of the vendors?

That sounds good to me! You know, we got married long ago but we wanted to get married sooner rather than later! My husband borrowed the money from his parents to buy my ring because he was in his last year of college. With his part-time job then and his full-time job after graduation, he paid them back in 18 months. So I strongly support those who do not want to let a ring dictate when they marry, as long as the monthly payments are totally in budget!

(Some of the vendors have 6 months no interest, but I'll bet the rate following that is more than 9%. You might call Good Old Gold and ask because I know they are one of the ones with that plan.)

 

[Rockdiamond]

From what I've seen, the "standard" rates for this type of loan is about 26.99-28.99%%
Yup.
It's even legal.
Somehow, I don't know how such rates are not considered "Usury"

As has been mentioned, there are places that offer 6 months - or given time period interest free.
In almost all cases, the entire interest is piled on the day after the promotion ends, if there's even $1 balance.
So, if you get one of these deals, make SURE to pay it all before they can charge the interest.

My advice to any shopper is to think long and hard about that aspect- especially youg people.
They can buy a ring when they're 21 and still be paying for it when they hit 30.

 

[VRBeauty]

Another option is to propose with a ring you can afford now, with a promise to upgrade later. I know, it's not the "romantic" ideal. But - there are many beautiful rings to be had for far less than $12,000, you avoid starting this phase of your relationship with debt, and your fiance will get to help design choose or design the final engagement ring even though you'd be proposing with a surprise ring now.

 

[TC1987]

I know it's not necessarily the Pricescope norm, but it is possible to buy something like an older and less than ideal but still nice a decently-cut uncerted diamond in the .8ct, VS clarity and J color range, 6mm diameter, for perhaps $1200 or so at a pawn shop or used jewelry dealer, and then just have it set in a simple Stuller tiffany-style mounting for another $300 or so. I have bought such a loose diamond for that price, and also another in the 1.06ct range, and it came in 6-prong typical tiffany style solitare mounting. It was graded I1 but I think GIA would call it SI2 nowadays.

None of them have lab reports. I never had them appraised and I never insured them. For $1200 or $3000, I didn't care. I'd only only get lab reports if I am interested in selling them. Diamonds like this won't be ideal cut not nor will they be H&A pattern. They will be more like what Good Old Gold calls "traditional symmetry." Might also be shallower and spready diamonds with large tables. they're like good "mall jewelry store stones." They look very nice by themselves, but may not look great right next to a superideal cut. Or may have better performance in certain types of lighting and may look a little bland in other lights. Or might be J - L or M color, or whatever.

 

[LibbyLA]

jmarshall,

If you weren't worried about having to finance, what would you be looking for? There are people here who are really skilled at finding the best bang for the buck, whether new or vintage/antique.

It's possible that you might find something vintage or antique that would be nice for a budget price. There are some very beautiful vintage/antique erings and even wedding sets for $200-300, which you could give with the promise of something more spectacular a little later. There are nice .75 ct.-1 ct. for $2K, give or take.

TC1987 may be on the right track for you.

liz

 

[BriBee]

If you ended up going with a vendor that has an interest free period (6 months or whatever), maybe you can do the 6 months interest free and then if you still have a balance pay it off with the 0% cc to extend your interest free period even longer, just make sure you have everything ready to go before the first interest free period expires and avoid paying all the cumulative interest, and make sure the vendor will accept a final payment via cc. And it is true that if you get a standard cc (Visa, MC, Disc) you will not pay the total interest once your introductory period expires, interest will only start accruing on the balance as of the date that your 0% period expires.

 

[jmarshall]

jmarshall,

If you weren't worried about having to finance, what would you be looking for? There are people here who are really skilled at finding the best bang for the buck, whether new or vintage/antique.

It's possible that you might find something vintage or antique that would be nice for a budget price. There are some very beautiful vintage/antique erings and even wedding sets for $200-300, which you could give with the promise of something more spectacular a little later. There are nice .75 ct.-1 ct. for $2K, give or take.

TC1987 may be on the right track for you.

liz

I want to make this happen at the beach this summer, by then, without financing, my budget would be in the 3-4k range for stone and setting. If financing, would like to set budget aroun 7500-8500, with me definitely being able to pay the loan off in a years time.

 

[LibbyLA]

Okay, so what about the diamond and setting? What size/shape/color/clarity diamond? What type of setting? If you post that info, there are some lovely ladies who can just about work miracles with almost any budget, including some half or less of your smaller numbers.

Are you open to "preloved" or antique/vintage?

People can help you start looking so you can see what you can get for your budget. You may discover that you can swing this without borrowing money!

liz

 

[YoungPapa]

I want to make this happen at the beach this summer, by then, without financing, my budget would be in the 3-4k range for stone and setting. If financing, would like to set budget aroun 7500-8500, with me definitely being able to pay the loan off in a years time.

jmarshall,

We offer a financing option and I would hazard to guess that most of what we see applies to other companies in this industry.

Regarding jewelry financing in general, it's a bad idea. Buy what you can afford and upgrade if and when it's important. With that said, know that most jewelry financing is exactly like a credit card. You're not creating a collateral based account, but just chipping away at any overall "credit" that was available to you as an individual. If that credit comes with benefits like discounts or zero interest (within a time allocation you can make), go for it. Otherwise pay cash or get your credit from the cheapest source.

Two important notes: First, every time you apply for credit, you reduce the amount of credit available for the next application. If you're thinking about a private credit line with a vendor, pick your vendor before you apply for financing. Second, most approvals are for less than requested, so don't expect financing to cover more than XX percentage of the ring.

 

[diamondseeker2006]

It is perfectly reasonable to borrow a portion that you can pay back within a year or so. I am betting from the info given by vendors that you may be better off just borrowing from your credit union when the time comes. And as people have said, come back then and we will be happy to help you! (But when you come back, just don't mention the borrowing part so you don't have to revisit this topic!)

(And for those who worry about your debt, we are totally debt free other than the remainder of our mortgage. We pay cash for cars and everything else. Our kids have zero college debt. So the fact that my husband borrowed the money for my ring long ago had no effect on our long term finances..or short term, for that matter!)

 

[milton333]

DH financed my engagement ring, we were college students, and it had no long-term effect on our finances. IMO, while I'm not a big fan of buying jewelry on credit, I think there's financing and then there's financing. I wouldn't borrow $20k for a ring. But $3-4k? Maybe.

Upgrading is not all it's cracked up to be. I bought an upgraded (larger) engagement ring in late 2007, and by late 2012, 5 years later, a diamond with identical specs and the exact same setting were running more than 1.5 times what I paid for them 5 years prior. The larger stone that I wanted, but couldn't pay cash for, was about 30% more than the diamond I bought - now, a diamond with the same specs is nearly triple what I paid for my stone in 2007. Diamond prices tend to go in only one direction. Even had I financed a larger diamond in 2007, at high interest rates, I'd still come out ahead in terms of my investment, with a diamond worth far more than I'd paid in principal and interest. By the time you're ready to upgrade, the prices may have increased enough that you still find you're coming up short in savings.

I personally think it's reasonable to finance a manageable amount for the largest, most significant jewelry purchase you'll ever make. I'm certain you finance purchases of vehicles, and potentially other high-ticket items other than homes. I would not commit to something like a mortgage payment, but if you can swing it and there's a reasonable end date, not more than 3 years, then yes, I'd do financing for this purchase.

 

[meredeth11]

I know, might not be the best move, but I'm looking into it. What are the best operations for this? What are the interest rates?

Please try to avoid debt for jewelry You would be so much better off saving for months/year/s than by getting a very high interest loan or using your CC.

Definitely agree with rearadmiral, debt isn't a good thing for purchasing something not necessary for supporting a life!

 

[jmarshall]

Okay, so what about the diamond and setting? What size/shape/color/clarity diamond? What type of setting? If you post that info, there are some lovely ladies who can just about work miracles with almost any budget, including some half or less of your smaller numbers.

Are you open to "preloved" or antique/vintage?

People can help you start looking so you can see what you can get for your budget. You may discover that you can swing this without borrowing money!

liz

Princess cut, and it has to be bigger than any of her GFs or her sister in laws rings ( not in the sense that she would say no if its not, just in the sense that I want it to be) which puts it at 1 carat or better, which is why I was looking at the budget I was looking at.

Setting would be a solitare with shank set accent diamonds.

 

[LibbyLA]

jmarshall,

Maybe you ought to start a new thread asking for help to find a 1 ct. princess in solitaire setting with diamonds on the shank and start with the budget of $3-4K. It's probably going to be tough to get a 1 ct. at that price, but you never know, and someone may know of a quality preloved one that's well cut and right below a carat.

Too bad she's not into antiques. Here's a gorgeous old cut diamond in an antique setting that's within budget: http://loupetroop.com/listings/rings-natural-diamond-center/red-vintage-1920-s-platinum-oec-1-dot-15c-ring

Here's a princess that's close to budget, but I'm guessing that the cut quality isn't up to par since the certificate isn't AGS or GIA: http://loupetroop.com/listings/rings-natural-diamond-center/1-dot-03-f-si1-princess-cut-aig-certified (Note that I'm NOT recommending this one! I don't know diddly squat about princess cuts.)

Really pretty cushion that's within budget, but it's a cushion: http://www.diamondbistro.com/index.php?a=2&b=33531

liz

 

[jmarshall]

I will definitely out the good folks of price scope to work when it comes time, but I don't want to sit on the ring until mid July, as there is no way I could keep it a secret that long.

So here is my next question.... To purchase a diamond and setting from say gog or wf, what kind of wait time should I expect for the stone to be set and delivered? I'd hate to have this great idea and not end up with the ring in time.

 

[diamondseeker2006]

Generally it takes a couple of weeks or less depending on the setting you choose and how quickly it can be made or obtained. But those are two great vendors for ideal princess cuts and they have nice settings! But I would definitely begin choosing about 6 weeks before you plan to propose in case the setting you want takes longer to order or something.