Three women look on excitedly as a fourth woman holds her left hand out showing her engagement ring.

How to Buy an Engagement Ring with a Credit Card

8 min read

Last Updated: May 2, 2025

Table of contents

Key Takeaways

You should choose an engagement ring based on your current financial situation.
There are several engagement ring financing options, including credit cards.
No matter how you choose to buy your ring, you should always practice responsible money habits.

Are you ready to take the next step in your relationship? If you’re going the traditional route and want an engagement ring, you may wonder how much to spend on an engagement ring. There’s no right or wrong amount to spend on an engagement ring.

If you set a realistic budget and explore different ways to finance the purchase, you can confidently make a decision. Good planning helps align your financial goals with the significance of the occasion.

Figure out your ring budget

It's important to set an engagement ring budget that aligns with your financial situation. Look at your current savings, income, and other financial obligations and figure out how much you can spend on a ring.

Know your partner’s expectations

Does your partner value the symbolism and significance of an expensive ring? Or would they prefer a more budget-friendly option? Have open and honest conversations with your partner to understand what they are expecting.

How to finance an engagement ring

Personal loans

With a personal loan, you can make affordable payments on your purchase. Personal loans can come with fixed or variable interest rates and typically have set repayment terms. Don’t forget to consider your credit score, as it may impact your interest rate and eligibility.

Jewelry store financing

Store financing options may include special deals. One popular deal is a low interest offer. Review the terms and conditions of financing options to understand the interest rates, repayment periods, and any additional fees. It could be worth it to compare different jewelry stores and their financing options before deciding if it’s right for you.

Personal savings

Setting aside a certain amount of money each month allows you to make a purchase without incurring debt. It might take a while to save enough to pay for an engagement ring, but this method doesn’t require paying any interest.

Credit cards

A credit card might give you access to a wide selection of rings (depending on your credit limit) and the potential for rewards. However, it's important to consider the potential impact on your personal finances. If you have high interest rates and you can’t pay back your purchase quickly, your final cost of the ring will rise. If you use a large portion of your credit or miss a payment, it could impact your credit score rating. Carefully consider the pros and cons of using a credit card to buy an engagement ring before making a decision.

Convenience: With a credit card, you can make the purchase immediately. Plus, you might have the flexibility to choose from a wide range of engagement rings based on your credit limit. This means you don't have to wait or save for the ring, giving you the ability to propose when you're ready.

Rewards: Many credit cards offer programs that allow you to earn cash back rewards and other perks on your purchases. Buying an engagement ring with a rewards card can help you accumulate points that you can use on future purchases.

With the Discover it^® Cash Back credit card, you can earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate.

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However, you should avoid purchasing a ring on a card just for the potential rewards benefits. Carefully consider your finances and always aim to shop within your budget.

Interest: Another important consideration is the credit card interest rate. If you're unable to pay off the balance in full at the end of the billing cycle, you may accrue interest charges. Depending on your credit card's terms and your credit score, your interest rate can be quite high, adding to the overall cost of the ring.

Did you know?

You might avoid interest payments by getting a credit card with a low interest promotional period. These programs require you to pay off your purchase before the promotion ends to avoid interest.

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Usage: You should try to avoid using too much of your credit limit to purchase an engagement ring. The use of too much of your available credit may impact your credit utilization ratio, which makes up a significant portion of your credit score. If you're planning to apply for other types of credit, such as a mortgage, your credit score becomes very important to getting favorable terms. You should always try to keep your credit utilization low.

What are the best credit cards for buying an engagement ring?

A cash back credit card can offer some advantages with large purchases. Cash back cards provide a percentage of the purchase amount as a rebate, effectively giving you money back on your wedding ring cost. The benefits of using a cash back card when buying an engagement ring are twofold.

When you use a cash back credit card, you can earn a percentage of the purchase price back as cash rewards. Depending on the card, the cash back can range from 1% to even 5% during promotional periods. With the Discover it^® Cash Back credit card, you can earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. This might be a smart way to get back a portion of the ring's cost and use the cash back rewards on other wedding-related expenses.
Cash back cards might offer flexibility in redemption. You can often choose to receive the cash back as a statement credit, which can directly reduce your credit card balance. Alternatively, you may have the option to receive the cash back as a deposit into your bank account. This freedom of choice allows you to use the cash back as you see fit, whether it's for additional purchases, paying down debt, or building savings with your partner.

Don’t forget to compare and research different cash back cards to find one that offers, low interest, and low to no annual fees (Discover has no annual fee on any of our cards). Finding a rewards program that aligns with your spending habits is important too. The best credit card for you is an individual choice, but one that might make your engagement ring purchase a little more affordable.

The bottom line

Buying an engagement ring should be a fun and exciting purchase. If you plan to finance the perfect ring, keep in mind your individual financial situation, credit score, and long-term goals. Carefully evaluate the options of personal loans, store financing, credit cards, and your savings. By doing this, you can make an informed decision that matches your financial capabilities and preferences. Remember to consider the interest rates, repayment terms, and any potential fees associated with each option to determine the most suitable choice for you.

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