Jewelry & Watches
The Diamond Advisors Weigh In On Jewelry Financing Options
Each year, over 127 million diamond carats are produced from 25 countries around the world.
Whether you are looking for a fancy engagement ring or a diamond tennis bracelet, working with an experienced jeweler is essential. Most people know very little about how to spot a quality diamond, which is why getting some professional guidance is needed.
Once you have found the diamond pieces you love, you need to think about how you are going to pay for this purchase. If you are unable to pay for the jewelry you want out of pocket, there are a number of financing options you can take advantage of.
Read below to find out more about the diamond jewelry financing options on the market.
Getting Financing at a Jewelry Store
For most people, getting financing for their jewelry purchase from a reputable jeweler is ideal. Most of the major jewelry stores out there will have interest free financing. Generally, this financing will require a person to pay off their balance within a year.
Using the James Allen financing options | qualify for monthly payments is a smart idea due to the flexibility they offer. As with most jewelry store financing plans, you will need to make sure your payments are on time. Missing a payment can result in you paying a lot more for your jewelry due to high late penalties being tacked on.
Before signing up for a financing plan from a jewelry store, be sure to read the fine print. The last thing you want is to pay too much for the pieces you want due to a lack of proper research. Looking at the length of the financing and the interest rate is essential before signing an agreement.
Using a Credit Card
If you do not want to use financing from a jewelry store, you can always make a purchase with your credit card. Before using a particular credit card, you need to find out what your annual percentage rate is.
Occasionally, credit card providers will offer promotions where they give new customers a zero interest rate for an allotted amount of time. If you can wait until you can take advantage of one of these promotions, then doing so is a good idea.
If you just have to make a purchase right away, you need to make sure you stay well below the credit limit on your card. Getting too close to maxing out the credit card can affect your credit. If your debt utilization is higher than 30 percent, it will usually result in your credit getting significantly lower.
Unsecured Personal Loans
Another option you can use when attempting to finance a jewelry purchase is an unsecured personal loan. Generally, these types do not require collateral. The only drawback of using these loans is the high interest rate they have.
Before taking out one of these loans, you need to check out how high the interest rate is and how quickly it needs to be paid back. Neglecting to check out this information can lead to you getting in over your head financially.
Weighing all of the financing options you have will allow you to figure out which one is the right fit. Consulting with professionals in the world of finance can be beneficial when attempting to make this difficult decision.