The crazy world of engagement ring financing

Gerri Detweiler of credit.com has an article about sleazy engagement ring financing.

[H]ere is what some of the major jewelry stores are currently advertising. With all of these plans, if you make one late payment or fail to pay the balance in full during the promotional period, interest will be charged from the date of purchase — not from the date the promotional period ends.

Jared: 0% interest if paid in full within 12 months; up to 24.99%.

Kay Jewelers: 0% interest if paid in full within 12 months; up to 24.99%.

Shane and Company: 0% interest if paid in full in 6 months; 27.99%

Zales: 0% interest if paid in full in 6 months; 23.73% to 28.99%

While interest-free financing may work out fine if you are able to pay off the balance, it is risky if you aren’t able to come up with the cash to pay it off.

One more potential trap: Applying for one of the accounts will create an inquiry on your credit reports. Plus, if you accept the financing, you’ll have a new account with a balance listed on your credit reports, and that could potentially have a negative effect on your credit scores.

The crazy world of engagement ring financing

(Image: Life in the old dog yet, a Creative Commons Attribution (2.0) image from aldenchadwick's photostream)

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