Can You Finance a Wedding Ring or Dress?

Wedding rings and wedding dresses are absolutely essential items for most brides and grooms when it comes to getting married.

For rings, in particular, they symbolise the bond and commitment between two people who have decided to spend the rest of their lives together. However, it is not always easy to finance a wedding ring or dress, especially when you are on a tight budget.

Fortunately, there are several options available in Australia for those who want to finance wedding rings and dresses — keep reading to find out more! 

How can I finance a wedding ring, engagement ring, or wedding dress in Australia?

Finding the perfect engagement ring or wedding dress can be an emotional and exciting time, but finding the funds to afford them can take away from the shine of the moment. Here are some of your engagement ring financing options, as well as options to finance a wedding dress or wedding bands.

Using your savings

Saving money is perhaps the ideal way to finance wedding rings, however, with the cost of weddings (including rings and dresses) being notoriously high, it may not be in your best interest to completely drain your bank account for an engagement ring and then leave yourself high and dry for any emergency funds or further money to afford the wedding itself!

If you have enough time before your wedding, it is a good idea to start saving as early as possible. If you’re the one looking to propose, then chances are that you’ve already started putting away to help pay for your significant other’s engagement ring. Creating a budget and cutting down on unnecessary expenses can help you save cash that can be put towards buying a wedding ring. 

You can also consider setting up a separate savings account specifically for your wedding expenses. This is a common strategy used by couples once they’re engaged so that they can both contribute to their wedding fund!

Layby

Layby is a popular option in Australia for financing a wedding ring. Layby allows you to purchase an item and pay for it over a period of time through monthly payments. The retailer will hold the item for you until you have paid the full amount. Layby is a good option if you don’t have enough savings or if you don’t want to take out a loan. However, it is important to read the terms and conditions of the layby agreement carefully. Some retailers may charge fees or cancel the layby if you miss a payment or make late payments.

One of the other main disadvantages to using a layby is that you don’t get to take the engagement ring home until the layby has been fully repaid. This may put a dampener on your romantic proposal plans!

Buy now, pay later

Buy now, pay later (BNPL) is a relatively new option in Australia for financing engagement rings. BNPL allows you to purchase an item and pay for it in instalments over a period of time. This option is popular because it offers interest-free payments and no upfront fees. However, BNPL can be expensive if you don’t make the payments on time, as late fees and interest charges can quickly add up.

Furthermore, BNPL arrangements usually only offer payments over four instalments. Given that the average spend on engagement rings in Australia is almost $6,000, this could mean that the four instalments are unaffordable. Spreading the cost of your engagement ring over a number of years through monthly payments may suit your budget better.

In-store financing and payment plans

Some jewellers in Australia offer financing options for their customers. This option allows you to purchase a wedding ring and pay for it over a period of time. The interest rate and fees will depend on the jeweller and the financing agreement. It is important to compare different financing options before making a decision. You may also be able to negotiate with the jeweller to get a better deal, particularly if your ring purchase is for an expensive ring!

Personal loans

Perhaps one of the most common ways that Aussies finance their wedding rings and engagement rings is through an unsecured personal loan. The beauty of a personal loan is that you can spread the cost of your ring or wedding dress over a number of monthly payments, but you can have the ring or the dress straight away.

What would the monthly payments be on a personal loan?

The repayments on a personal loan for wedding rings or other wedding expenses would vary, depending on a number of different factors, including the loan amount, your credit rating and how long you take the loan over. To get a gauge of what your repayments may be, you can use our personal loan calculator.

Which is the best finance option for wedding rings, wedding dresses, and engagement rings?

If you’re comparing your financing options, then it’s important to keep in mind that BNPL facilities, in-store financing, credit cards and most personal loans all rely on the results of a credit check. If you know that your credit report isn’t as strong as it could be, then this could pose an issue with accessing the funds you need to finance your ring purchase.

Affordability and accessibility are the two biggest determinants of which finance option is going to be best for you.

Normal lending criteria apply. Fees and charges are payable. Terms and conditions apply.

Finance One means:
Fin One Pty Ltd – ABN: 80 139 719 903
Australian Credit Licence: 387528

Disclaimer: The information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. You should consider seeking independent advice regarding your legal, financial, taxation or other needs, to check how the information relates to your particular circumstances. We do not accept responsibility for any loss arising from the use of, or reliance on, the information. All loan applications are subject to normal lending criteria. Fees and charges payable. Terms and conditions apply.