What's the best way to pay for a diamond engagement ring – cash or credit?

Who are you, Tony Soprano? Why would you have $5000 dollars in cash lying around to put down on an engagement ring? That's quite a hefty wad of bills, bud. Why don't you pay for the ring with plastic like the rest of us?

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There is no right or wrong way to pay for a diamond engagement ring. The payment method is a matter of personal preference, but it is important to take some issues into consideration.


I would recommend paying for an engagement ring with a credit card. This way you can avoid paying such a large sum all at once, and spread the payments out in the manner that is most convenient for you. Credit cards also most often offer buyer protection from frauds. If you pay the sum in full upon receiving your first payment, your credit card will keep you safe from any jewelers that are not necessarily reputable because this way you can usually make sure that you can return the diamond engagement ring if you or your fiancée would like to do so for any reason.


The most common problem when using cash to pay for a diamond engagement ring is that you may not be able to get a refund, but rather only store credit for other engagement rings at that specific jewelry store. Nonetheless, since everyone loves to get paid in cash, this payment method could help save you a few bucks in terms of interest fees or penalties.


If several months are enough for you to complete your payment of a diamond engagement ring and you have a good credit application, then store financing may be the right path for you to take. A lot of jewelry stores offer special credit cards exclusive to their specific jewelry store as well as financing programs.


An alternative method of paying for a diamond engagement ring with no full payment at one time is to put the diamond ring on layaway. Instead of bringing the engagement ring home and paying for it each month with a credit card, with layaway the engagement ring does not come home with you until you have finished paying for the ring. In most cases, this payment method requires an additional fee since the jewelry store has consented not to sell the diamond engagement ring, but rather keep it for you until you have completed all of your payments. Layaway's largest drawback is that in the case that you are not able to make all your payments, the payments you have made will not be returned to you.


There's always the option of taking a loan from the bank to pay for a diamond engagement ring, which can be especially convenient since it can help cover the costs of the many other expenses associated with the wedding. However, there is an element of risk involved since with bank loans you must have collateral, so I would advise against taking a loan to pay for an engagement ring unless you are completely aware of all that this entails.

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