I'm in the market for an engagement ring but don't want to drop a load of cash in one lump sum.
I found this article which suggests to open a new CC with 0%APR for x amount of months:
https://www.businessinsider.com/paying-for-engagement-ring-2…
Whenever you decide you're ready to propose to that special someone, how much you spend on the ring, whether you're resetting a diamond that has been in your family for generations or buying a new one, is a personal decision. There's a ton of advice out there, and plenty of schools of thought, but there are no hard and fast rules; ignore anyone who tells you that you absolutely have to spend three months' salary, or that you have to spend a certain amount for each year you've been together.
However much you decide to spend, though, chances are it'll be a lot — likely the most expensive thing you've ever bought. When I proposed to my (now) wife, that was certainly the case — not counting college and grad school, of course.
One thing that's for sure, though, is that you shouldn't spend outside of your means. When you're ready to pop the question, and in a financial position to do so, there are a few ways to pay for an engagement ring.
The first, and most obvious, is to save up enough money and buy it outright. However, there are reasons you may not want to do this. For instance, you may want to keep a cash cushion in case of emergency, rather than committing to spending it all at once. After all, that's why people finance things like new appliances or cars.
The next option is to finance the ring with a loan arranged through your jeweler. Using loans to make major purchases and keep cash on hand can be a smart financial move, and in some cases, the loans offered by your jeweler may fit your needs. However, other times they may not have the best terms or interest rates, and you generally won't get any cash back or rewards on the purchase.
Fortunately, there's a third option, which is what I went with. Instead of taking out a traditional loan, or financing a ring through a credit card offered by the jeweler, you can open a new credit card that has a 0% introductory APR on purchases for a certain amount of time.
When I bought the ring, I opened a card that had that introductory APR for the first 15 months. That meant that instead of paying cash all at once, I was able to charge the ring to the card, and pay it off over a bit more than a year without having to pay any interest. As a nice cherry on top, I even got a signup bonus for opening the card, and cash back on the ring itself, which I was able to put right toward paying it off.
It was basically free money for buying the ring.
The key is that you make sure you pay off the whole thing before the introductory APR ends and the normal one becomes effective. In my case, I decided to be safe and divided the total cost of the engagement ring by 14. I paid that amount each month, and that way, I was finished paying off the whole thing a month early.
A great feature is that you have extra flexibility if you go this route. If you come into some extra cash, or decide that you want to just finish the payments from savings, you can pay off the balance in full at any time.
Is this actually a good idea and has anyone done it before?
I have the money to buy, but I just don't want to drop all that cash in one go.
What happens when you guys breakup before the wedding? Are you still going to make your payments?