When it comes to romantic gifts, few things are more prized or sought-after than the perfect piece of jewelry. For many couples, it’s the ideal way to say “I love you.”
However, for some, it’s simply not realistic to make a jewelry purchase in cash. Fine jewelry is expensive, and many people can’t afford to spend that much all at once. For these, jewelry financing can be a helpful way forward when a birthday or special occasion is coming up.
But any time you use debt to get ahead, there’s always a risk involved. Before you sign a jewelry financing agreement, you’ve got to think about whether you’re prepared to meet the demands the agreement entails. To help you out with that, refer to the following questions any time you want to finance a jewelry purchase.
Can I afford the monthly payments?
This is question number one, and for good reason — if you aren’t sure you can budget in enough money to make your payments on time, financing anything not completely necessary is off the table.
As you consider the terms of a financing agreement, pay special attention to the monthly payment amount and how long it will take you to pay off the loan. You may opt for a lower-priced item, such as an engagement ring with a smaller stone, in order to make the payments more manageable. This should be your first consideration any time you finance jewelry.
What’s the return policy?
While it may seem unthinkable to return a piece of jewelry you bought as a gift, it’s still something you should consider, just in case. That ring, bracelet, or necklace may be your most expensive single purchase of the month, or even the whole year. Whether or not you think there’s a chance you would want to return it, you should still make sure the option is open before buying. If your purchase is being made online, find out whether or not the store will cover return shipping. Checking the return policy is a key part of making a responsible purchasing decision.
What’s in the fine print?
There’s nothing wrong with fees or restrictions, as long as you aren’t surprised by them after you’ve already made a purchase. The “fine print” in a lending agreement will tell you what fees will apply, if any, as well as what you’ll be paying in interest. It should also tell you about any additional limitations or requirements for taking out the loan. Make sure you’ve read and properly understand any fine print before signing an agreement.
Will I receive any perks or bonuses?
This will vary from store to store, but it’s something you should know about if it applies to your purchase. Some jewelers will offer their customers perks or special treatment for financing a purchase. These could include exclusive coupons, automatic reminders for jewelry inspection and cleaning, or even a special gift sent to you every year on your birthday.
Remember, whether or not a jewelry store offers such bonuses isn’t necessarily relevant to whether or not you should make the purchase. After all, if you’ve found the right jewelry at the right price, that’s all you need. But asking will help ensure that you’re an informed customer.
Is my credit good enough?
According to FICO, maintaining a credit score of 850 is incredibly rare. In fact, only 1% of the total population can pull it off. Many lease purchase programs won’t finance purchases for people without great credit. So for many people looking to customer financing for an important purchase, bad credit financing had better be available, or they won’t be able to buy.
Fortunately, Okinus leasing offers jewelry financing and more for those with a less-than-perfect credit score. You can even use an Okinus lease for rebuilding credit, since information is sent to the major credit bureaus when you make payments on time.
By asking yourself these questions before you sign up for jewelry financing, you’ll prepare yourself to save money and time in the long run.