If you’re planning the perfect proposal, chances are you’re also shopping around for the perfect engagement ring — and, of course, your budget will also influence your selection. Considering your partner’s preferences and determining how much you want to spend is essential, as engagement rings range in price from a couple hundred to several thousand dollars.

If you don’t have enough savings to pay for the perfect ring upfront, engagement ring financing is an option. Here’s what to know about typical ring costs and how to decide the best way to cover this all-important purchase.

How much do people spend on engagement rings?

According to the bridal website The Knot’s Jewelry and Engagement Study, survey respondents spent $5,800 on average for an engagement ring in 2022, with approximately one-third spending between $1,000 and $4,000. While these average costs provide a general baseline of how much others are spending, choosing an engagement ring is a personal decision, and the best option for you may have a lower or higher cost.

There’s also an old rule of thumb that says the price of your engagement ring should equal three months’ salary, but that’s likely not the best guideline. Instead, determine your budget by looking at your financial situation, how much you can reasonably afford, and your time frame for saving.

How to finance an engagement ring

In an ideal world, you could pay for your partner’s engagement ring with savings. But if you’re worried your savings won’t stretch enough for the perfect ring, there are multiple engagement ring financing options to consider. Financing allows you to pay off your ring over time by making weekly or monthly payments rather than a large, lump-sum payment upfront.

Personal loan

You can use a personal loan for an engagement ring loan, borrowing a predetermined amount and making equal payments with interest on the entire amount over a set period. Personal loans are usually unsecured, so you won’t need to provide collateral — an asset used to back a secured loan. Given that there’s often no collateral required for an unsecured personal loan, these loans typically have relatively high rates to help offset the lender’s risk.

Loan amounts and loan terms vary widely by lender. You may be able to borrow as little as a few hundred dollars or as much as $100,000, and repayment terms could be as long as seven years. You’ll generally need good or excellent credit, a manageable level of debt, and consistent income to qualify for a personal loan. Your lender will conduct a hard credit pull as part of the loan decision process, and if approved, you could receive your loan funds the same day of approval or within a few business days.

Credit card

Putting an engagement ring on a credit card could allow you to pay it off slowly with no interest — if you’re savvy about it. By opening a card with a 0% introductory annual percentage rate period. With cards like this, you’ll benefit from a 0% promotional period on new purchases for up to 12 or 18 months, though some cards come with longer intro offers of up to 21 months. After the intro period, the card’s regular APR applies.

So if you go this route, make sure you can pay off the balance within the intro period. Credit cards otherwise carry higher rates than other financing options, often 20-22% APR, and that rate will kick in when the introductory period is up.

Depending on your creditworthiness, you could get approved for a card with a credit line of several thousand dollars. You’ll typically need good credit or excellent credit to get approved for a card with an intro offer. The card issuer will conduct a hard credit pull as part of the approval process, and if approved, you’ll typically receive your new card in the mail within seven business days.

Read more: How to choose between a personal loan vs. a credit card

Buy now, pay later

Sometimes called afterpay services, buy now, pay later options such as Klarna and Affirm have become popular for engagement ring purchases. You use BNPL at checkout when you buy the ring, making a partial payment at time of purchase and then paying off the remaining balance over a few weeks. These services typically don’t charge interest if you pay on time.

Credit requirements are fairly lax. BNPL services often only do a soft credit check, which won’t impact your credit score, so BNPL could be an option if you have bad credit. But make no mistake: You could harm your credit if you miss payments or pay late. Before choosing a service like this, be sure you understand the requirements, fees, and payment schedule to ensure you can make your payments on time.

Jewelry store financing

Many retailers offer in-store payment plans or store credit cards with 0% financing for up to 18 months, though offers and time frames vary depending on where you shop. Longer repayment terms could be an option, but your jeweler may charge a relatively high interest rate for the privilege of a longer term.

For instance, the Jared Gold card has multiple financing offers tied to specific purchase amounts, including a 0% APR for 18 months on purchases over $5,000. But if you need 36 months to repay your card, you’ll get a 16.99% APR for that time period, and after that, your APR will increase to 32.24%. Similar to 0% APR credit cards, jewelry store financing is generally only a wise choice if you’re certain you can repay your balance before your APR increases.

How to choose a financing option

An engagement ring purchase, in addition to being a major life moment, is also a potentially four- or five-figure investment that can have a significant impact on your personal finances. Think about how much you plan to spend on a ring, your partner’s preferences and a feasible repayment term for your situation. Look at your budget and savings and consider whether you can make a down payment to reduce the amount you have to finance, and determine what monthly installments you can afford to pay. You’ll also want to check your credit history and credit score, as many lenders and card issuers require strong credit. Then use that information to guide your decision about applying for a loan or credit line.

Once you’re ready to apply, compare rates, fees, and repayment terms from different lenders or card issuers. Doing so will help you find a low interest rate on a new loan or credit line.

Be prepared for a hard credit check if you opt for a loan, credit card, or jewelry store financing. You’ll also need to provide some personal and financial information on your loan application, including your Social Security number, proof of income and more.