I’m planning to buy an engagement ring within the next few weeks.
The ring is expected to cost around $7,500.
Currently, I have the following cards:
Discover it $4,000
Citi Double Cash $7,500
Costco Anywhere Visa $7,000
Amex Delta Gold $7,500
I make $103,000 annually and have $18,000 invested in stocks on Robinhood. I intend to sell some stock to pay for the ring.
Credit Karma states my credit score is 773.
Which card would you recommend if you were in my position? A card with a 0% APR period would be beneficial so I can avoid selling all my stock at once, but if another card offers a substantial sign-on bonus, I might consider selling it all at once.
Larkin said:
Are engagement rings really almost 10 grand?!
Someone who’s clearly never been engaged
Prices for engagement rings can vary significantly based on the size and quality of the diamond. Some rings are under 1k, while others have no upper limit. I generally suggest spending no more than a month’s salary and never going into debt for it.
Larkin said: @Frey
How do you even spend 40 grand on a ring? I thought those were for Saudi princesses.
Just like how some people drop 100 grand on overpriced trucks. It’s not an investment, just an expenditure. I enjoy making my wife happy with a diamond on her finger, and apparently, a lot of people share that sentiment.
@Frey
That’s funny because lab diamonds are now better and much cheaper. Everyone my fiancée knows thinks it’s a real diamond. I’m sorry but you got scammed.
Secondly, usually, jewelers will offer credit cards with 0% for 12 months; that’s what I did.
Alternatively, consider the Wells Fargo Reflect card, which offers 0% for 21 months. I’d do this and budget around $350 a month to either save in a high-yield savings account or pay down the card. Selling your investments is usually not the best route—capital gains tax and opportunity cost can be significant.
I recently bought a ring and used my Chase Sapphire Preferred for 1x points and combined it with a Chase offer that provided 5% cash back. Since it would be new to you, you’d also receive the targeted sign-on bonus (minimum 60k) and could use Chase Pay Over Time, which has no fees or interest for the first use.
Not saying it’s the best, just sharing my recent experience.
If you plan to sell the stock, waiting isn’t beneficial since stock prices can also drop. Consider a luxury travel card with a good sign-up bonus to help fund a nice honeymoon.
Don’t sell investments for a ring, man. You know better than that! I bought a lab diamond ring for $100 on eBay, and everyone my fiancée knows thinks it’s a huge diamond.
Consider either the Chase Ink Cash/Unlimited for a 75k sign-up bonus, 6k spend, and 0% APR for 12 months, or the Amex Business Gold for a 175k sign-up bonus, 10k spend, and 0% APR for 6 months (this option requires a referral or targeted offer).
The ring’s price depends heavily on the diamond’s size, clarity, color, and cut.