Credit issues!

[Anonymous]

Ok here is the deal.  I've been with my girlfriend for 7 years now and I'm working on trying to pay for an engagement ring.  Last year we put a custom ring on layaway at this jewelery store.  We did this thinking we could secure a regular loan to pay for it in a month or two after.  Well, shortly thereafter most of my credit card companies slashed my credit limits to just above of what I owed, so needless to say my credit took a hit with the high revolving %.  I have not been able to secure a loan since, and am running out of options and am wondering what everyone else thinks?  I've been making regular monthly payments to the jewelry store, but am not able to pay enough to get it paid off anytime soon (within a year or two even).  If I could secure a three year loan I'd be fine, but like I said, I can't even do that.  I've never missed a payment on anything, so the only reason my credit is hurting is because of the high revolving %.  We'd like to get married this year.  I've even tried Prosper and some other P2P networking sites with no luck.

Also, we are homeowners, so question on that....Could my debt to income ratio have an affect on this?  When I apply for a loan, I am thinking that my whole mortgage payment gets figured in, instead of half since that's what I pay?  Is it better to apply for a loan then with my girlfriend then?  She's been declined as well, and the only thing I can think of is because of her debt to income ratio as well.  Her revolving ratio is right around or under 30% and she's never missed a payment either.  But, she doesn't make a ton.

Any help would be appreciated...And if you have any other sites I could check out.  If not, I'm thinking my only other option is to try to pay off my credit cards as fast as possible and to keep on making payments on the ring.  I would just like to get a ring on her finger soon, and she's anxious as well.

[llecs]

DW taught me a valuable lesson when we were dating and talking future marriage: It doesn't have to be perfect! I say that because, while we were still in school, I waited a year or two more than what I needed to because I was trying to save for that perfect ring and that perfect wedding and that perfect honeymoon. It got so bad that my best man-to-be pulled me aside one day and said that if I don't propose, I may lose her; they cannot wait forever because it will be forever before everything is perfect. It was on her birthday I had $300 burning a hole in my pocket and told DW she could buy anything she wanted at the mall. Where did she go? Zales! Then she looked at the case and said "I want that one!". It was a $500 engagement ring. I financed about $250 of it and paid cash for the rest and that cheap-looking ring was worth a zillion bucks to her....and she did make me get on one knee and make it official.

If I was in that situation, I would walk away from the jewelry store. If they kept whatever I paid in, then so be it...lesson learned. If not, then bonus. I would then buy something cheap. Not cheap-looking and I certainly wouldn't get it at Wal-Mart, but something within my budget and I'd pay cash for it as opposed to getting dinged with more inquiries, new credit, more debt, etc. DW still has that cheap ring and we even added to it for the wedding and it looks decent, but have since upgraded rings, years later, from that 1/4 carat to seven 1/2 carat diamonds in a custom setting. They aren't of the best quality, but that comes later.

Per the DTI question, adding a loan will impact your DTI, but won't impact your mortgage. On the flip side, your mortgage payment is factored into the DTI your future credit apps. However, I've always put household income (mine and hers). On utilization, get it as close to 10% as possible for max points.

[Walt_K]

Additionally, if you can get your money back that you've already paid from this store, you may want to look around at local jewelers that are not large chains.  I purchased an engagement ring from a local place.  I put some money down and agreed to make payments for the rest of the purchase for a year.  There was nothing in writing, it was just an oral agreement.  I agreed to 9% interest which was better than I could get for a loan from the bank.

I just bought a set of diamond earrings from the same guy for Christmas.  Walked out of the store with them having made no deposit.  Told him I would pay him in a couple months, and there was no interest.  So, there are local places that can be a lot more flexible with you especially once you establish a relationship.

[JM-AM]

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@Anonymous wrote:

Ok here is the deal.  I've been with my girlfriend for 7 years now and I'm working on trying to pay for an engagement ring.  Last year we put a custom ring on layaway at this jewelery store.  We did this thinking we could secure a regular loan to pay for it in a month or two after.  Well, shortly thereafter most of my credit card companies slashed my credit limits to just above of what I owed, so needless to say my credit took a hit with the high revolving %.  I have not been able to secure a loan since, and am running out of options and am wondering what everyone else thinks?  I've been making regular monthly payments to the jewelry store, but am not able to pay enough to get it paid off anytime soon (within a year or two even).  If I could secure a three year loan I'd be fine, but like I said, I can't even do that.  I've never missed a payment on anything, so the only reason my credit is hurting is because of the high revolving %.  We'd like to get married this year.  I've even tried Prosper and some other P2P networking sites with no luck.

Also, we are homeowners, so question on that....Could my debt to income ratio have an affect on this?  When I apply for a loan, I am thinking that my whole mortgage payment gets figured in, instead of half since that's what I pay?  Is it better to apply for a loan then with my girlfriend then?  She's been declined as well, and the only thing I can think of is because of her debt to income ratio as well.  Her revolving ratio is right around or under 30% and she's never missed a payment either.  But, she doesn't make a ton.

Any help would be appreciated...And if you have any other sites I could check out.  If not, I'm thinking my only other option is to try to pay off my credit cards as fast as possible and to keep on making payments on the ring.  I would just like to get a ring on her finger soon, and she's anxious as well.

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I agree with the above post.

First a little more detail may help for some one who may have experience with said jeweler and may be able to help or give advice from their experiences with them.

Second you have been paying off this ring for how long now (1 year)? And still would take you several years to finish purchasing? Looks like this ring is really beyond your budget. I was always taught that unless you are well off financially when buying a ring never spend more then 2 months salary on it. 

Not trying to say you shouldn't make an attempt to purchase something nice for your future wife, but when it actually can put a burden on you financially it really is not the best choice for you or her. 

I am unsure after a year of making payments you will receive any type of refund so I would just see if they will give you another choice of a less expensive ring you can choose. While it may be a lesson learned to walk away from it there really is no sense in throwing your money away completely if you have an option or 2 to just change rings.

Then you always have the option to tighten your belt and live on an extreme budget to buy the ring you want for her.

[Anonymous]

determine the amount of cash you can spend on the ring Right Now.  go to the store with it.  ask for a manger, and speak to him/her in private (ie in an office away from the sales floor, while your GF looks around for another ring).  tell the manager that you've decided to pay cash for a ring and could he please allow you to put your layaway $$ plus your current cash $$ toward a ring.  you buy the ring for cash and walk away debt free!

i bet any jewelry manager in the country would do this for you, but you have to make it a personal sale.  if you just ask for your money back, depending on what you signed, you may get nothing. if they refuse the sale and try to keep your money, go to the BBB and file a complaint.

good luck!