Congratulations! You have found the love of your life. Now is the time to find the symbol of this love – an engagement ring. If you are recently eyeing for that perfect engagement ring, you know it is hard to find a payment plan with bad credit. Some require a down payment of 25% and up to 80%. Others necessitate you to spend at least a thousand dollars to proceed with a credit card.
We understand this frustration, so we cleared up some things for you. You may ask, is a credit check always needed to buy an engagement ring? The short answer is no.
If you are interested in avoiding credit checks when buying an engagement ring, keep reading to find out.
First of all,
why do people propose with an Engagement Ring?
You would not want to invest in something you don’t fully know, right? Well, wedding proposals that use engagement rings are a tradition that dates back to the Ancient Egyptians. Ancient Egyptians believed that circles signify eternity, so couples needed to exchange vows with something of that shape. Back then, they used plaited reeds as rings.
Flash forward to the 2nd Century BC, Ancient Romans started the tradition of giving engagement rings as an object of wealth. A man’s wealth entitles them to the ownership of a woman. This tradition has been frowned upon, so it slowly shifted into exchanging rings to one another. The latter became a sign of consensual agreement to become a married couple.
Initially, engagement rings were worn by the rich and the royals. However, when diamonds were first discovered in Africa, many men were encouraged to spend a two-month worth of income to invest in it. Diamonds on engagement rings have become a norm, following the most famous campaign, “A Diamond is Forever.”
What is a Credit Check?
A credit check is a company’s way of understanding and verifying your financial capacity and behavior. It is done through looking at your credit report, with or without your consent. This is possible so long as they have a legitimate reason to do so (such as applying for a loan).
Companies that do a credit check include banks, credit unions, utility companies, lending agencies, etc. These companies analyze your credit patterns – how much credit you have left, how long and often you pay, or your paying capacity.
There are two types of credit checks, a soft credit check and a hard credit check.
A soft credit check allows companies to look at a certain amount in a credit report. This will help them decide how successful your loaning application will be, without obtaining the full information on your credit history. No matter how many times a soft credit check is done, this will not affect your credit score.
Meanwhile, a hard credit check is a full inquiry of your credit history. Every hard credit check done in is recorded on your credit report, making it visible to any credit bureau who will assess it in the future. Too many hard credit checks hurt your credit score, thereby reducing your chances of getting approved for credit. A hard check is usually a sign that a person applied for credit. This signals companies to think that you are in financial trouble or you depend too much on loans.
Are credit checks needed when buying an engagement ring?
It depends on the company you are applying into. Engagement ring companies such as Gage Diamonds and Zales do not require credit checks.
Gage Diamond has high approval and low-interest rates. The company partnered with LendFirm to sell their products at wholesale while selling them at competitive retail prices. It offers 0% interest with 12- or 24-month term loans that are payable in equal installments. Aside from 0% interest, they also have no application fees, late penalties, or hidden charges. The price you see at checkout is the price you will pay.
Meanwhile, Zales has a Lease Purchase Program they refer to as a ‘no credit needed alternative’ This scheme allows you to bring home your jewelry the same day you processed all the scheduled payments. They have flexible payment options, including weekly, bi-weekly, monthly plans that are simple to use. You can also save money by taking advantage of their 90-day purchase option.