3 Things You Need To Know About Financing A Nice Piece Of Jewelry

If you want to purchase a nice piece of jewelry, such as an engagement ring or a necklace and earring set for an anniversary, the cost of the jewelry may exceed your monthly spending budget. This is where financing through the jewelry store comes into play:

Multiple In-House Financing Options

Many jewelry stores offer special financing options. These special financing options often allow you to purchase jewelry via a store credit card or through a financing service offered directly through the store. The salesperson at the jewelry store may suggest that you use the in-house financing options.

In-House Financing Comes with Special Offers

Most jewelry stores will offer special offers throughout the year in order to entice you to use the in-house financing option. For example, you may be able to secure 0% interest on jewelry loans over a set period of time, such as ninety days or six months.

These special offers work best if you pay attention to the fine print. Most of these special offers require you to pay off the loan within a short, set period of time. If you fail to pay off the loan in that time period, the promotional internet rate will expire and a much higher interest rate will either apply to the cost of your original purchase or to the remainder of your balance. If you miss a payment during the promotional period -- for example, if you have six months to pay off the ring, but you miss the payment date on the fourth month -- the benefits of the promotion will expire.

Special financing terms and offers are great, as long as you have the means to pay off the jewelry purchase within the time frame for the special promotion without missing a payment.

Consider the Source of the Financing

Carefully consider the source of the financing. If you have to sign up for a credit card via the store in order to secure the financing, think carefully if you will use the credit card again. If you see yourself making additional jewelry store purchases, getting a credit card with the jewelry store is a smart decision.

If you don't see yourself purchasing items from the jewelry store again or in the near future, it may be smart to use a different financing option. For example, you could use a credit card that you already have to purchase the ring and pay it off via over time. You could also take out a personal loan through your bank and use that loan to pay off the purchase.