Buying a ring----CC vs Finance

[jonblaze24]

So the time has come, looking to buy a ring for the lady in the next month or so. I have an opportunity to get an amazing deal from a good buddy of mine, only kicker is I would have to pay it in full which I CAN do via credit card....but would prefer not to. I also have the option to go to a store where they offer financing and monthly payments, which is much more preferable as far as finances go. 

I have spent the last year repairing my credit and FINALLY have eclipsed the 700 FICO mark. I got my CC utilization down to under 15%, and we also plan on buying a house in the spring time. I'm really trying to weigh my options and what is best for my credit situation. 

I guess my question here would be, would it be smarter to pay the ring (roughly 6k) with my credit card and gradually pay that off....or smarter to finance a ring through a store and get that hit on my credit? Paying in full I know will drastically increase my utilization, but I dont know if appllying for another line of credit will hurt me when looking for a home in a couple of months. Any feedback would be appreciated!

[Mr_Mojo_Risin]

Congrats on the proposal first of all!

I probably wouldn't open a Consumer Finance Account leading up to a mortgage. New accounts are not recommended 12 months before a mortgage.  You'll also be dinged just for having a CFA.

I would put the ring on a card with the lowest APR and pay it off as soon as possible. I'm sure other members will be along to give some great advice!

[OmarR]

Great advice on a new CFA.

OP, if you have a particular place (or places) in mind that you want to finance from, ask them who they use for their financing. Not all stores use CFA's for financing. Some stores use major banks and they code as personal loans.

[sxa001]

Congratulations on the proposal!  As mentioned, if you are planning to buy a house in the next 12 months I would avoid opening any new accounts regardlesss of the type.   Honestly though if you aren't going to be able to pay a decent chunk of that up front and you are two months for buying a house, if it is possible to wait to put the charge on until after you close that will be better as to not throw your utilization out of whack. 

[tacpoly]

You're planning on taking on a mortgage soon.  If you can't pay for a ring outright, then get a placeholder ring for now -- something that won't put you in debt (I've read of women who travel with replica diamonds while they keep their real ones safe at home).  Get a substantial one later, when you can afford it.  Don't ever go in debt for an engagement or wedding -- amount spent has never been what it's about.

[calyx]

Mortgage in spring means you really want no new accounts reporting.

In my opinion, it seems like purchasing a ring now (and I have my own feels about going into debt for jewelry) is not a good idea as you'd want to save the money for the house, I'd think.  However, if you are going for it - at least call your lenders and see if any will offer a 0% period, so you have a chance to pay it without interest