how to pay for engagement ring

[investingnoob]

Hey guys so I'm buying my engagement ring tomorrow for my soon to be fiance.
I've waited for Fred Meyer jeweler is having 20% off for 4 days.

I have saved the cash for the ring ($1900) . Now I'm curious,
Should I just pay with cold cash? Or they let you finance for a year interest free to build credit. Would
It be worth it since I can just pay off in a year? Or would It do nothing for my credit?

Also they offer a lifetime jewelry care plan is that worth buying for $149.99?
Basically it covers cleaning and repairing wear and tear, mechanical and structure failure for life.

Thanks guys.

[junkstuff1]

I could go either way on the financing option. Since you do have the cash right now, if you finance you should set that cash aside and not touch it for anything else. If you bank with ING Direct or another bank that lets you easily create sub-accounts, it would be great to make a new account just for paying off the ring. You might come out ~$10 ahead after a year.

My wife's ring's purchase price included a "lifetime care plan," but the catch is that she has to take it in every 6 months for them to clean and inspect. If the 6 months lapses, then we're SOL if something happens to it before she brings it in again. So be aware of the requirements on your part. I think that $150 is probably worth it.

[kork13]

I would try to wheel & deal using the upfront cash as leverage. 0% offers have to work out for the seller somehow--they do so by working the cost of the 0% 'loan' into the cost of the ring (side-note, same situation applies for 0% offers on cars). And no, this would probably have no impact on your credit, as it would doubtfully be reported to the credit bureaus (unless you failed to pay it and it went into collections).

So try to see if they'll reduce the cost of the ring by having you pay upfront, or probably better/more likely, try to get the 'lifetime care plan' included in the price (so that you pay little-to-no extra for it). You may need to speak to a manager to get either of these deals for yourself.

For special pieces of jewelery (i.e, engagement/wedding rings) and other stuff you know will be kept for years and years, a lifetime care plan can be worth the extra cost (assuming you trust that Fred Meyer will be around for "a lifetime" to continue maintenance on it). Normally, I never go for "deals" like this--but then, I don't often buy jewelery. I do think you should consider it, especially if, as I said above, you can get it included in the purchase price (effectively lowering your cost for the ring).

P.S. Congratulations on your coming engagement!!

[LuckyRobin]

My 18 months same as cash for my laptop showed up on my credit report. So it does show up there with the balance each month. If you are trying to build your credit it might be an okay way to go, but I would advise paying the ring off in half the time, do not take the full year. Then you will be nowhere near having to pay interest if you forget towards the end. But if they will offer you a discount up front for cash I would go with that over financing. Any decent discount should outdo what you could make in interest by keeping your cash in the bank for a year.

[KiwiJo09]

I wouldn't suggest financing it. I'm definitely thinking the $150 lifetime care plan is worth it though. I have that on my ring and I lost a diamond and they replaced it free of charge. Worth it!

[greenskeeper]

pay cash w/ lifetime warrenty

my brother-in-laws wife was working at GAP folding jeans. The diamond came off the setting and was lost in one of the pockets of the jeans. somebody got a great deal on a pair of pants, while my B-I-L didn't have the warrenty! ouch!

[photo]

Congratulations!

If you need to build up your credit, then since it will cost you nothing (read the very fine print; it may be that if you're late or miss a payment, they will sock it to you with penalties), it may be a good idea. Also, it might be worth a try to offer them $1700 or $1800 cash. If they say no, then you can finance at 0%.

Originally Posted by investingnoob

Also they offer a lifetime jewelry care plan is that worth buying for $149.99?

Personally, I don't think it's worth it, except for the merchant who almost always profits handsomely from them.

[JustBill]

I don't know Fred, but if I were buying I would expect the noted coverage to be included as part of the purchase, or I'd walk. It is odd your question would come up now, because DW just today took her well-worn wedding set back for the second time (last time 10 years ago) to have a lost baguette diamond replaced. As with all 14k gold, the mountings had eroded over time and were not capable of holding replacement stones. The jeweler remounted all the stones in a new setting for no charge.

Other words of wisdom here; there is a strong likelihood of "upgrades" to your initial purchase in your future - and, add the piece to your homeowner's or renter's insurance policy.

As for the credit building aspect to your post, if you need the payment history and credit limit value to establish a credit file, you may want to look at establishing a M/C or Visa account and paying the balance off in full during the first billing cycle. That way the established credit will have more long term usefulness/flexibility to use at other merchants, and you can continue along the same manner of posting monthly payments well past the ordinary term of a retail sales contract.

[JoshuaHeckathorn]

I agree with the others that have recommended you try to negotiate the price with a cash purchase. If they won't budge at all, then come back later and use a rewards credit card to purchase it. Don't use their financing. What they'll do is get you a subpar Fred Meyer retail credit card that you won't want to have for the long run anyway since you can't use it elsewhere.

There are plenty of other great rewards credit cards out there (many have 0% interest on purchases as well), so get one that provides the type of rewards you're interested in, make the purchase, and then pay it off in full.

[Frugal]

We did not buy the care plan on our rings at JCPenney. I wish we had. My wedding ring is slightly defective, and the "yellow" 14-k gold "wore" off and is now dull silver less than one year after buying it. It also lost a small diamond three weeks ago, with normal wear and tear. Wish I had not really bought from Penney's without a care plan. However...the diamond coming out was not Penney's fault. Anytime they size a ring down (as they did twice each for my wedding and engagement rings), there is a risk with channel-set diamonds (whether chips or larger stones) that they will pop out on the top or esp. the sides. My advice is get the care plan if you plan to size down an engagement or wedding ring. If you don't get that, consider strongly taking out a special extension on a homeowner's insurance policy, esp. if you have other jewelry. I did this recently, because I was worried this might happen again to another diamond on my ring, since obviously the jeweler messed it up.

[Frugal]

p.s. I personally think it is best to pay cash. We put ours on a credit card and paid it off almost immediately, so it didn't really matter. Sometimes, you can get a discount by using the store card (like at Penney's). Also, take into account when deciding on a care plan or warranty coverage whether the engagement ring will actually be WORN after the wedding. If like me, she ends up taking it off and not wearing it (my finger got too big for its tiny size!), there is not as much need for coverage on it sitting in a jewelry box, as on a wedding ring worn every day!

[bjl584]

Unless your credit needs some work, then I would pay cash and get it over with.

I also wouldn't worry about the insurance. How long will she be wearing an engagement ring after she is married? 6 months tops? Save your money and get the insurance on the actual wedding ring, not the engagement ring.

[KiwiJo09]

I actually plan on wearing my engagement ring with my marriage band for as long as I'm married. I still vote for paying cash and the care plan. Less risk.

[mcfroggin]

0% apr all the way.

[edg126]

If you saved up for it, great for you. Pay it now. It's $10 you'll save over a year, not worth the hassle of monthly payments and risk of forgetting. Youll be planning a wedding, maybe saving for a house, why confuse finances?

I also cant believe in paying 10% of the cost of the ring for an insurance/ cleaning plan. That's a lot!

[ecoadapt]

I would probably go for cash,I think even if the insurance is tempting it would be more practical if you'll pay it in cash as you've said you already have the money!

[snshijuptr]

Don't buy retail. Look for her setting (or something very similar) at your local diamond mart, pawn shop, or online. $1900 is a ridiculous amount to pay for a ring. You might be able to buy the setting from one store and the diamond from another. The whole engagement ring business is a rip off.

[snafu]

I hope you've done a bit of research to understand what you are paying for when buying jewelry that will be worn/retained for a long time. Has your intended had any input? I'm presuming Fred Meyer has a good reputation for the jewelry they sell. That means if they tell you it's 10K or 18K gold [white or yellow] that's exactly what it is. Jewelry isn't 'pure' gold because that lacks tensile strength. The latest gold price I saw was $ 1,792.40. but you are buying grams of gold.

The 2nd part of an engagement ring is typically diamond/diamond chips whose size is designated by % of Carats. [However, Prince Wm. gave Kate a Blue Sapphire]. To further complicate your purchase, diamonds are graded alphabetically to identify flaws in the stone and the skill of the craftsman who cut it.

Read and understand the details of the Care Plan before buying. The 'claws' that hold diamonds in place are soft and wear-out over time. If the cost of gold keeps increasing having these replaced every few years will get expensive.

Personally, I'd ask for no fee Care Plan but if that's a no-go, I'd take the 0% financing. setting up an automatic payment from my bank so that control is maintained. You can increase or pay-out without risk of penalties by being a day late.