Financing Engagement Ring/ Credit Score Potential Consequences

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cam240
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Financing Engagement Ring/ Credit Score Potential Consequences

Post by cam240 » Tue Jun 27, 2017 3:00 pm

Hello Bogleheads,

My fiance and I recently chose a ring for our engagement. The ring has a cost of $2,400. I just recently graduate college (less than 3 months ago) and started working at an annual salary of 60K a year and have no debt whatsoever ( no student loans, auto loans, CC debt, nothing) . I initially was going to pay half of the ring upfront and finance the other half through the jeweler 6 month 0% APR program. They also offer a long 12 month plan but it has some 24.xx% APR which I want to avoid. However, I recently got the Chase Freedom Unlimited credit card and it has an introductory 15 month 0% APR. So I have been thinking about paying 50% up front and 50% with my new Chase credit card and spread the balance through say 12 out the 15 0% APR months. My questions are regarding how this could impact my credit score? If I do choose to go this route I would not put more than $1,200 into the Chase Card. My credit limit is much higher than this so my credit utilization ratio would not even exceed 30%. My Chase credit card agreement does not specified any certain minimum monthly payment amount but I would basically pay $100 every month for 12 months ( I want to have it all paid off with 3 months of cushion before the 0% APR period is up). I have never not paid my credit card balance in full and I am worried that carrying a month-to-month balance will hurt my credit score ( credit score is upwards of 750). Any feedback is appreciated.

Thanks Cam240,

mhalley
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by mhalley » Tue Jun 27, 2017 3:12 pm

While keeping a cc balance in general is a bad idea,as long as you make payments and keep your utilization below 30% your credit score should be fine. You should have at least two major credit cards in the event one has a problem.
Remember that the 0% cards sometimes have a catch, so be sure you follow the rules exactly. I am not a fan of financing something at zero percent due to the potential for problems. Between the two, I would go for the cc over the jeweler financing, but prefer :moneybag
Doing this is bad from a behavioral finance perspective as you get into the habit of running a balance. I know there are a bunch of cc hoppers out there that frequently get new cc for special rewards, zero %, etc, but I have never been into that.

annielouise
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by annielouise » Tue Jun 27, 2017 3:20 pm

Best bet is to save up the $2400 and buy the ring then. That will set the stage for good financial habits throughout your life & marriage.

Second best choice is the CC 0%. Be sure to fully understand the terms.

Don't use the jeweler's finance option - most likely to have traps (like APR jumps to 24% retroactively if payment is late).

Actually, the best option is not to waste money on something that has no practical use and can easily be lost or stolen. Much better to use that money for an emergency fund, or at least the wedding or honeymoon. I will never understand why women want engagement rings!

seity
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by seity » Tue Jun 27, 2017 3:21 pm

Do not finance through the jeweler. It will result in another hard credit inquiry for a mere 6 month 0% offer that will take 2 years to drop off your credit report. Use the 0% Freedom CC offer you already have and pay it off before the 0% ends. Do not use that card for any other purchases. Since it would be 0% interest and you will have a low utilization it will not impact your score.
I have been using 0% credit card offers to my benefit for many years. Always pay it in full before the 0% ends and have a second card for day to day purchases.

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KlingKlang
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by KlingKlang » Tue Jun 27, 2017 3:37 pm

annielouise wrote:Best bet is to save up the $2400 and buy the ring then. That will set the stage for good financial habits throughout your life & marriage.

Second best choice is the CC 0%. Be sure to fully understand the terms.

Don't use the jeweler's finance option - most likely to have traps (like APR jumps to 24% retroactively if payment is late).

Actually, the best option is not to waste money on something that has no practical use and can easily be lost or stolen. Much better to use that money for an emergency fund, or at least the wedding or honeymoon. I will never understand why women want engagement rings!
I agree with all of this except for the "waste money" part. I paid about that much for my wife's ring 33 years ago. If it makes her happy it's not a waste of money! If you had said $24,000 my answer obviously would be different.

DGE
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by DGE » Tue Jun 27, 2017 3:40 pm

annielouise wrote:Actually, the best option is not to waste money on something that has no practical use and can easily be lost or stolen. Much better to use that money for an emergency fund, or at least the wedding or honeymoon. I will never understand why women want engagement rings!
Just as you can't understand why women want wedding rings, there are even more women who can't understand why a woman wouldn't want a wedding ring.

SuzBanyan
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by SuzBanyan » Tue Jun 27, 2017 3:50 pm

What about your soon-to-be spouse? Can she contribute financial resources to the ring she will be wearing?

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lthenderson
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by lthenderson » Tue Jun 27, 2017 3:51 pm

Are you planning on buying a house or taking out a significant loan in the next year? If not, why worry about the impact to your credit score? If that is several years off, it shouldn't be a concern.

Like others, my choices would be to save up until you could pay in cash first and probably pay with the credit card second as long as it got paid off before interest started.

cam240
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by cam240 » Tue Jun 27, 2017 6:00 pm

Thanks for the thoughts and suggestion. To answer some of your questions. We will not be buying a house any time soon nor any other large purchase. She did offer to contribute toward the ring. And I would love to do the 2,400 cash but the date is creeping on me and I will not have the entire amount available. I did forget to mentioned that I will get $150 bonus for spending more than $500 within the first 3 months so that saves me so money.

ralph124cf
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by ralph124cf » Tue Jun 27, 2017 6:06 pm

The jeweler is charging you more for the ring to make up for the 0% financing. Using the credit card may allow you to get a better price on the ring. Jewelry markups are very high, so bargain. If you don't try, you won't get anything.

Ralph

Tracyfaa
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by Tracyfaa » Tue Jun 27, 2017 6:17 pm

Ask what the cash price would be. Then what everyone else has said!! And congrats on engagement! :sharebeer

Katietsu
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by Katietsu » Tue Jun 27, 2017 6:28 pm

Yes. Jewelry mark up is huge. Read about it and bargaining strategies/alternative purchase methods. Jewelers love selling engagement rings as many people feel odd about looking for the best price for them.

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VictoriaF
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by VictoriaF » Tue Jun 27, 2017 6:32 pm

DGE wrote:
annielouise wrote:Actually, the best option is not to waste money on something that has no practical use and can easily be lost or stolen. Much better to use that money for an emergency fund, or at least the wedding or honeymoon. I will never understand why women want engagement rings!
Just as you can't understand why women want wedding rings, there are even more women who can't understand why a woman wouldn't want a wedding ring.
It pays to be a contrarian: for men and women.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

Grt2bOutdoors
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by Grt2bOutdoors » Tue Jun 27, 2017 6:49 pm

[quote="annielouise]

Actually, the best option is not to waste money on something that has no practical use and can easily be lost or stolen. Much better to use that money for an emergency fund, or at least the wedding or honeymoon. I will never understand why women want engagement rings![/quote]

Ring represents the suitor being serious with a symbol of financial commitment that intended holds as a promise and security for the intended day. In essence, since the intended's availability has been taken off market, the ring represents compensation in the event the suitor fails to live up to their part of the initial bargain. Remember, a marriage in most parts of the world represents a financial contract. If you don't believe it, visit a divorce attorney.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Jags4186
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by Jags4186 » Tue Jun 27, 2017 6:54 pm

Grt2bOutdoors wrote:[quote="annielouise]

Actually, the best option is not to waste money on something that has no practical use and can easily be lost or stolen. Much better to use that money for an emergency fund, or at least the wedding or honeymoon. I will never understand why women want engagement rings!
Ring represents the suitor being serious with a symbol of financial commitment that intended holds as a promise and security for the intended day. In essence, since the intended's availability has been taken off market, the ring represents compensation in the event the suitor fails to live up to their part of the initial bargain. Remember, a marriage in most parts of the world represents a financial contract. If you don't believe it, visit a divorce attorney.[/quote][/quote][/quote]

Actually if you don't get married the ring goes back to the giver--depending on what state you live in I guess.

That said, OP, if you make $60k/yr and have no debt I can't figure out why you wouldn't be able to save $2400 in a month or 2.
Last edited by Jags4186 on Tue Jun 27, 2017 6:56 pm, edited 1 time in total.

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VictoriaF
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by VictoriaF » Tue Jun 27, 2017 6:55 pm

Grt2bOutdoors wrote:
annielouise wrote:
Actually, the best option is not to waste money on something that has no practical use and can easily be lost or stolen. Much better to use that money for an emergency fund, or at least the wedding or honeymoon. I will never understand why women want engagement rings!
Ring represents the suitor being serious with a symbol of financial commitment that intended holds as a promise and security for the intended day. In essence, since the intended's availability has been taken off market, the ring represents compensation in the event the suitor fails to live up to their part of the initial bargain. Remember, a marriage in most parts of the world represents a financial contract. If you don't believe it, visit a divorce attorney.
$2,400 is not a serious commitment.

$2,400,000 is a different story.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

Grt2bOutdoors
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by Grt2bOutdoors » Tue Jun 27, 2017 8:43 pm

VictoriaF wrote:
Grt2bOutdoors wrote:
annielouise wrote:
Actually, the best option is not to waste money on something that has no practical use and can easily be lost or stolen. Much better to use that money for an emergency fund, or at least the wedding or honeymoon. I will never understand why women want engagement rings!
Ring represents the suitor being serious with a symbol of financial commitment that intended holds as a promise and security for the intended day. In essence, since the intended's availability has been taken off market, the ring represents compensation in the event the suitor fails to live up to their part of the initial bargain. Remember, a marriage in most parts of the world represents a financial contract. If you don't believe it, visit a divorce attorney.
$2,400 is not a serious commitment.
It is to someone who is earning $30K pre-tax, that is like 2 months worth of earnings - DeBeers would agree with me too! :P
$2,400,000 is a different story.
Most folks are not shopping at Harry Winston's, even the wealthiest Boglehead would draw the line at spending that kind of dough.
Victoria
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

TropikThunder
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by TropikThunder » Tue Jun 27, 2017 8:47 pm

KlingKlang wrote:
annielouise wrote:Best bet is to save up the $2400 and buy the ring then. That will set the stage for good financial habits throughout your life & marriage.

Second best choice is the CC 0%. Be sure to fully understand the terms.

Don't use the jeweler's finance option - most likely to have traps (like APR jumps to 24% retroactively if payment is late).

Actually, the best option is not to waste money on something that has no practical use and can easily be lost or stolen. Much better to use that money for an emergency fund, or at least the wedding or honeymoon. I will never understand why women want engagement rings!
I agree with all of this except for the "waste money" part. I paid about that much for my wife's ring 33 years ago. If it makes her happy it's not a waste of money! If you had said $24,000 my answer obviously would be different.
Exactly! At least they're not falling for the "3 months salary" guideline. :twisted:

TropikThunder
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by TropikThunder » Tue Jun 27, 2017 8:56 pm

cam240 wrote: So I have been thinking about paying 50% up front and 50% with my new Chase credit card and spread the balance through say 12 out the 15 0% APR months. My questions are regarding how this could impact my credit score? If I do choose to go this route I would not put more than $1,200 into the Chase Card. My credit limit is much higher than this so my credit utilization ratio would not even exceed 30%. My Chase credit card agreement does not specified any certain minimum monthly payment amount but I would basically pay $100 every month for 12 months ( I want to have it all paid off with 3 months of cushion before the 0% APR period is up). I have never not paid my credit card balance in full and I am worried that carrying a month-to-month balance will hurt my credit score ( credit score is upwards of 750). Any feedback is appreciated.
As long as you're below 30% utilization, your score won't even change based on the purchase (it will change from the account opening, but that already happened). Plus, the $150 new-account bonus, plus the 1.5% cash-back and you're way ahead of the game. :wink: That's a very reasonable price for a wedding ring, and the fact that she offered to chip in says great things about her.

Dottie57
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by Dottie57 » Tue Jun 27, 2017 9:03 pm

annielouise wrote:Best bet is to save up the $2400 and buy the ring then. That will set the stage for good financial habits throughout your life & marriage.

Second best choice is the CC 0%. Be sure to fully understand the terms.

Don't use the jeweler's finance option - most likely to have traps (like APR jumps to 24% retroactively if payment is late).

Actually, the best option is not to waste money on something that has no practical use and can easily be lost or stolen. Much better to use that money for an emergency fund, or at least the wedding or honeymoon. I will never understand why women want engagement rings!
I myself like a nice ring. I don't understand the cost of the blow out wedding into the 10's of thousands. Church reception is fine by me.

Miriam2
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by Miriam2 » Tue Jun 27, 2017 9:35 pm

cam240 wrote:My fiance and I recently chose a ring for our engagement.
Wonderful! Congratulations!
cam240 wrote:The ring has a cost of $2,400.
No problem. Well within the bounds of elegant and affordable. If it's beautiful and she loves it and you are happy - that's what counts, price be dam*d (up to a point). You can afford it. Good jewelry lasts along with the emotions. My mother left me her diamond engagement ring :happy
cam240 wrote:I just recently graduated college (less than 3 months ago) and started working at an annual salary of 60K a year and have no debt whatsoever (no student loans, auto loans, CC debt, nothing).
What a great start! Make a little down payment, put the rest on that new Chase CC and have a lovely affordable honeymoon, pay monthly without interest until it's paid off, and you reap the benefits of a good credit history with a standard CC. 8-)

sawhorse
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by sawhorse » Tue Jun 27, 2017 9:51 pm

Grt2bOutdoors wrote:Ring represents the suitor being serious with a symbol of financial commitment that intended holds as a promise and security for the intended day. In essence, since the intended's availability has been taken off market, the ring represents compensation in the event the suitor fails to live up to their part of the initial bargain. Remember, a marriage in most parts of the world represents a financial contract. If you don't believe it, visit a divorce attorney.
My engagement ring was made by my husband in a beginner jewelry class with a worthless non-diamond stone/pebble. As I told him, if he had gotten down on one knee with a multi-thousand dollar diamond, I would have seriously doubted whether I should marry him. There are women who would have rejected him for the opposite reason though.

Based on the broken engagements and divorces I've seen, neither an expensive ring nor an expensive wedding are signs that a couple is more or less committed.

There truly is no correlation one way or the other in my experience.

Cam240, it sounds like you're in a financially okay situation to buy the ring since you have no debt. I echo the others in being wary of jeweler financing and in thinking that the 0% credit card is the best option IF you can pay it off. If you start charging the rest of the wedding expenses to the card, you'll soon find yourself on a dangerous treadmill.

Congratulations on the engagement!

Grt2bOutdoors
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by Grt2bOutdoors » Tue Jun 27, 2017 9:58 pm

sawhorse wrote:
Grt2bOutdoors wrote:Ring represents the suitor being serious with a symbol of financial commitment that intended holds as a promise and security for the intended day. In essence, since the intended's availability has been taken off market, the ring represents compensation in the event the suitor fails to live up to their part of the initial bargain. Remember, a marriage in most parts of the world represents a financial contract. If you don't believe it, visit a divorce attorney.
My engagement ring was made by my husband in a beginner jewelry class with a worthless non-diamond stone/pebble. As I told him, if he had gotten down on one knee with a multi-thousand dollar diamond, I would have seriously doubted whether I should marry him. There are women who would have rejected him for the opposite reason though.

Based on the broken engagements and divorces I've seen, neither an expensive ring nor an expensive wedding are signs that a couple is more or less committed.
I should have caveated my statement by saying "Historically".
There truly is no correlation one way or the other in my experience.

Cam240, it sounds like you're in a financially okay situation to buy the ring since you have no debt. I echo the others in being wary of jeweler financing and in thinking that the 0% credit card is the best option IF you can pay it off. If you start charging the rest of the wedding expenses to the card, you'll soon find yourself on a dangerous treadmill.

Congratulations on the engagement!
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Miriam2
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by Miriam2 » Tue Jun 27, 2017 10:34 pm

sawhorse wrote:My engagement ring was made by my husband in a beginner jewelry class with a worthless non-diamond stone/pebble.
Sawhorse - the non-diamond stone/pebble was not "worthless" :D :D

toofache32
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by toofache32 » Tue Jun 27, 2017 10:50 pm

What are the chances you've got one of those women who will want to "upgrade" the ring in a few years? This would play into my willingness to splurge at the beginning. My wife has gold-digging friends who "upgraded" their rings later when the husband's income increased. My wife says "but now it's no longer and engagement ring, right?" and they look at her like she's crazy. She views her ring as a symbol of a special time in our lives where that was what we could afford.

In summary, if you think she's gonna take you to the cleaners at some point, now is the time to be frugal to compensate for later. Reference the "push present" thread for similar ideology.

sawhorse
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by sawhorse » Tue Jun 27, 2017 11:19 pm

toofache32 wrote:What are the chances you've got one of those women who will want to "upgrade" the ring in a few years? This would play into my willingness to splurge at the beginning. My wife has gold-digging friends who "upgraded" their rings later when the husband's income increased. My wife says "but now it's no longer and engagement ring, right?" and they look at her like she's crazy. She views her ring as a symbol of a special time in our lives where that was what we could afford.

In summary, if you think she's gonna take you to the cleaners at some point, now is the time to be frugal to compensate for later. Reference the "push present" thread for similar ideology.
I'm pretty sure that a gold digger wouldn't go for a recent college graduate making $60k with no major income increase on the horizon. Don't get me wrong it's a really good salary for a recent graduate, but it's not gold digger level.

ResearchMed
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by ResearchMed » Wed Jun 28, 2017 7:00 am

sawhorse wrote:
toofache32 wrote:What are the chances you've got one of those women who will want to "upgrade" the ring in a few years? This would play into my willingness to splurge at the beginning. My wife has gold-digging friends who "upgraded" their rings later when the husband's income increased. My wife says "but now it's no longer and engagement ring, right?" and they look at her like she's crazy. She views her ring as a symbol of a special time in our lives where that was what we could afford.

In summary, if you think she's gonna take you to the cleaners at some point, now is the time to be frugal to compensate for later. Reference the "push present" thread for similar ideology.
I'm pretty sure that a gold digger wouldn't go for a recent college graduate making $60k with no major income increase on the horizon. Don't get me wrong it's a really good salary for a recent graduate, but it's not gold digger level.
Also, I'm not willing to call all such women (or men; equal opportunity here, right?) who "upgrade" as "gold diggers".

Perhaps they care more about that than a fancy car (which probably costs more, and needs to be replaced every few years), or even a "new" kitchen, or a big vacation.
Perhaps they can easily afford the "upgraded ring" AND the new kitchen/big vacation/etc.

The negative context simply isn't warranted for "all of those people".
If there is more disposable income, and retirement and other savings are taken care of...???

Perhaps it was the husband who *wanted* to get a new ring, or maybe it was even for that "push" gift.
Back in the early '80's, a friend surprised his wife with "her new car" when he picked her and the new baby up at the hospital to bring them home. Presumably that was what she would have wanted, if there was to be any surprise gift at all.
The term "push gift" may be recent, but the concept isn't.
It's just nice to be able to give gifts when one can, for some of us at least.

And Best Wishes to OP and Fiancee!

RM
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by indexonlyplease » Wed Jun 28, 2017 7:08 am

Be careful with purchasing using 0% interest on you loans. The study shows over 80% of people do not pay off the loan then it goes to interest at a high rate. Not worth it.

Can you delay the engagment six month and purchase cash. Maybe buy a bigger one saving more?? To make her happy.

Starting of a serious relationship and going into debt is not a great idea. What will be next, furniture, cars etc.


I believe Dave Ramsey is a good person to read about online. His way of debt free living makes life easy in the long run. He has good advise on your topic.

toofache32
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by toofache32 » Wed Jun 28, 2017 7:47 am

My point was that when upgrading an engagement ring, it's no longer an engagement ring. I obviously hit a nerve with the upgraders here. Nothing wrong with purchasing nice things. My comments were regarding those who like to replace engagement rings, not purchasing new jewelry, cars, etc.

ResearchMed
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by ResearchMed » Wed Jun 28, 2017 8:11 am

toofache32 wrote:My point was that when upgrading an engagement ring, it's no longer an engagement ring. I obviously hit a nerve with the upgraders here. Nothing wrong with purchasing nice things. My comments were regarding those who like to replace engagement rings, not purchasing new jewelry, cars, etc.
Sure it's still "an engagement ring", a symbol and memory of their engagement... if that is what *they* consider it to be.

Or would you consider a replacement ring, if the original has been lost or stolen, also to be "not an engagement ring", so they might as well get a bracelet or perhaps take a vacation with the money "instead"?
Or only if it is the same dollar value as the lost one?

We took our honeymoon two years after our wedding. Does that make it "just a vacation"?
It sure felt like "our honeymoon" to us!
And the photos and memories sure seem to us to be of "our honeymoon".

But this thread is about OP and Fiancee and *their* engagement, and any symbols of it that they wish to have.

RM
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bigROI
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by bigROI » Wed Jun 28, 2017 8:17 am

Going to give you a tip on diamonds, anything you find in the store will be 100-200% more than you can pay for one online from a reputable dealer with a return policy. I got a stone that had a rappaort for 8-10k for $1500 and put it in a $500 setting. For 2500 you could probably find a 1ct SI2 or better, good cut and symmetry, good polish, with a G-J color and even have it mounted in a solitaire setting for $1500 or less.
A penny saved is much more then a penny earned when you consider the tax/SS/medicare cut.

toofache32
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by toofache32 » Wed Jun 28, 2017 8:53 am

ResearchMed wrote:
toofache32 wrote:My point was that when upgrading an engagement ring, it's no longer an engagement ring. I obviously hit a nerve with the upgraders here. Nothing wrong with purchasing nice things. My comments were regarding those who like to replace engagement rings, not purchasing new jewelry, cars, etc.
Sure it's still "an engagement ring", a symbol and memory of their engagement... if that is what *they* consider it to be.

Or would you consider a replacement ring, if the original has been lost or stolen, also to be "not an engagement ring", so they might as well get a bracelet or perhaps take a vacation with the money "instead"?
Or only if it is the same dollar value as the lost one?

We took our honeymoon two years after our wedding. Does that make it "just a vacation"?
It sure felt like "our honeymoon" to us!
And the photos and memories sure seem to us to be of "our honeymoon".

But this thread is about OP and Fiancee and *their* engagement, and any symbols of it that they wish to have.

RM
Yes... my wife lost her ring 2 years ago. The replacement is NOT her engagement ring which is the main reason it upset her. Not sure why this is so confusing for you but we should keep this on topic. If I suspected my wife-to-be was the upgrading type, it might be bogleheadish to plan for this down the road and maybe take that into consideration for the first ring.

takeshi
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by takeshi » Wed Jun 28, 2017 8:58 am

TropikThunder wrote:As long as you're below 30% utilization, your score won't even change based on the purchase (it will change from the account opening, but that already happened).
Scores can definitely change for revolving utilization under 30%. I'm under 10% and my scores change with my revolving utilization. 30% isn't the ideal level or a point where revolving utilization no longer has any impact. It's a suggested maximum.

That said, unless the OP only has 1 card (number of reported balances is also a factor) he should see little negative impact from using the promotional offer. As another suggested above, do not use the card for purchases while carrying a balance.
cam240 wrote:credit score is upwards of 750
If that's a FICO 8 then you're already in the top bracket with 750 or higher and even a small drop isn't going to cause you serious trouble. As another pointed out above, short term small negative impact isn't worth fretting over unless you're planning to use your credit to open other accounts such as a mortgage, auto loan, etc.

Be aware that you don't have just one credit score. There are many scoring models out there and for most models you have a score generated on a report from each of the 3 major CRA's. Make sure you're tracking where you stand with all 3 and not just 1 of them.
seity wrote:Do not finance through the jeweler. It will result in another hard credit inquiry for a mere 6 month 0% offer that will take 2 years to drop off your credit report.
Inquiries are a small factor despite how people seem to tend to obsess over them. It is possible to see a bigger impact from an inquiry but in such cases one has other bigger issues with credit than inquiries. For established profiles in good standing, inquiries have little impact. The drop in Average Age of Accounts and having a new account are much bigger factors.

Additionally, impact from inquiries is reduced over time even before the inquiry drops off.

sawhorse
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by sawhorse » Wed Jun 28, 2017 10:36 am

toofache32 wrote:My point was that when upgrading an engagement ring, it's no longer an engagement ring. I obviously hit a nerve with the upgraders here. Nothing wrong with purchasing nice things. My comments were regarding those who like to replace engagement rings, not purchasing new jewelry, cars, etc.
I don't think people taking issue with your stance are upgraders themselves and thus feel attacked. I think the point is that items with a lot of personal meaning will be interpreted differently by different people. The upgraded engagement ring is still an engagement ring if that's the way the person views it. It's not up to someone else to say they're wrong.

My mother lost her wedding ring and got a replacement that looked similar. Her sister, who by the way was the upgrading type, ironically, kept telling her that it wasn't her wedding ring anymore, why does she keep refererring to it that way. My mom was really annoyed by that.

afan
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by afan » Wed Jun 28, 2017 2:31 pm

We got married decades ago. At that remove, memories are hazy. We both agree that the engagement ring cost $100. We each think we paid for it. Female of the couple has been offered the option to get something fancier and declined. The stone, the kind one could have bought for that price, fell out years ago. Ring is no longer worn.

Looking back on it, paying $100 for an engagement ring was a waste of money.

We are still married.
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Pajamas
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by Pajamas » Wed Jun 28, 2017 3:18 pm

Since you have picked out a ring, have you shopped around to see if you can get it for a better price? The markups on jewelry are very high and you can often do better on a site like Blue Nile as opposed to a local jewelry store. Even if it is slightly unusual, if you have a photograph of what you want, it would still be easy to shop around. Your local jewelry store is probably not creating the rings in the back room. If for some reason you really prefer to buy from a local jeweler, you can ask them to match the price.

I agree with others that the credit card is a better deal and won't hurt your credit significantly, if that is important. Any effect would be temporary, anyway. That 1.5% reward will help and you can apply it to the credit card balance as soon as it posts. That credit would even favor buying the ring entirely with the credit card and immediately making a payment on the card using the cash you are thinking about using to pay for half of the ring. You can even make the payment before you buy the ring. It's only $18 at 1.5% of $1,200 but it's also not a lot of effort. Just make sure the purchase will qualify for 0% interest and be sure to pay off the balance before the interest starts, don't wait until the last minute.

sawhorse
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by sawhorse » Wed Jun 28, 2017 3:40 pm

Whatever you choose, I urge you to investigate the source of your diamond and choose one that is ethically sourced, even if that means you have to adjust your budget to that (much better than wearing a rock of blood on your hand for the rest of your life!).

In a great irony, diamonds are a symbol of beauty and love and commitment, yet diamond mining as a whole is among the ugliest and cruelest industries where life is viewed as disposable.

When shopping for ethically sourced diamonds, don't just accept their label. Ask what they mean when they say their diamonds are ethically sourced. At the very minimum, the diamond sourcing should have complied with the Kimberley Process.

One company I feel comfortable recommending is Brilliant Earth. The Diamond Development Initiative's MDS Certification program is also a trustworthy seal.

Lab grown diamonds are also available.

Miriam2
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by Miriam2 » Wed Jun 28, 2017 6:27 pm

If you buy on-line, how do you know for sure it's a real diamond? Or that it is exactly what it was advertised to be?

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Lieutenant.Columbo
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by Lieutenant.Columbo » Wed Jun 28, 2017 6:43 pm

toofache32 wrote:If I suspected my wife-to-be was the upgrading type, it might be bogleheadish to plan for this down the road and maybe take that into consideration for the first ring.
if I suspected that, I'd definitely end the relationship and move on; wouldn't that be more bogleheadish?
Lt. Columbo: Well, what do you know. Here I am talking with some of the smartest people in the world, and I didn't even notice!

ResearchMed
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Re: Financing Engagement Ring/ Credit Score Potential Consequences

Post by ResearchMed » Wed Jun 28, 2017 6:51 pm

Miriam2 wrote:If you buy on-line, how do you know for sure it's a real diamond? Or that it is exactly what it was advertised to be?
Even when I bought jewelry "in person", what did *I* know?

So I took things to get an unofficial appraisal.

But this was pretty much long in the past.
Except for our wedding rings, there's been nothing new for a few decades.

RM
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