If you are making a large purchase, such as a wedding ring or jewelry purchase, you might be wondering how will pay for it. There are many different options to pay for the jewelry, but one of the best is to finance the ring through an in house financing service. Here are some things you need to ask about financing your wedding ring or a piece of jewelry.
Will This Go On My Credit Report?
In some cases you can finance the ring through the business and it won't show up on your credit report, unless you become delinquent on the payments. For some people this is ideal because they are trying to qualify for a home loan or other loans and having another line of credit on their credit report can make it hard to get qualified.
In other cases it will go on your credit report, especially if the purchase is significant, but that doesn't have to be a bad thing. Although it will decrease your debt to income ratio for future loans, it can also help to improve your credit score so long as you make the payments on time. Whether or not it will go on your credit report can be a good or bad thing for different situations, which is why you need to ask before hand what to expect.
Do You Need A Down Payment?
Some places will not let you finance a ring or piece of jewelry without a down payment. The down payment may have to be a certain percentage of the ring, such as 10%, so that the dealer can cover some of their costs upfront. This is an important piece of information to have before you go shopping, since it will determine how big of a ring you can afford, and if you will need more time to save for a down payment.
What Is The Interest Rate?
You can get a personal loan with a bank, or you can do in house financing with the jeweler. One of the most important factors in deciding what you will choose depends on the interest rate. If the jeweler has a low interest rate, or a promotion such as 12 months without interest, it may be worth it. However, be careful about the adjustable rate since you could end up paying more in the long run than if you got a fixed rate.
By asking these questions about financing your jewelry you can decide if getting a loan, such as from Sol's Jewelry & Loan, is right for you.