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A Valentine's proposal? Here's how to pay for the ring

Valentine's Day is just around the corner. For many serious romantics, this is the ideal opportunity to say those four little words – ‘will you marry me?'

A grand gesture like proposing on Valentine's day is certainly romantic, but how can you make it affordable?

As life-changing a day as it may be for you this year, there is one special (and costly) prop required for your Valentine’s proposal – the ring. If you’re planning a proposal but concerned that bad credit or insufficient funds may mean you can’t buy exactly the engagement ring your betrothed will love, all is not lost. To guarantee that your proposal is picture-perfect even if you have bad credit, a personal loan could help you to pay off this once-in-a-lifetime expense bit by bit. Here are a few types of loan that could help you achieve your romantic dream.

Unsecured personal loan

Even if your credit rating is not strong, it may be possible to obtain an unsecured personal loan with which to buy an engagement ring. Unsecured borrowing means that the loan is not tied to any asset for security – the lender is taking a larger risk in lending this way, as if you don’t maintain your repayment schedule there are no given assets for them to compensate with. It is usually easier to get an unsecured personal loan if you have a proven history of successfully paying off debt on time. In order to protect themselves from unpaid debts, lenders tend to only offer higher, less affordable interest rates on unsecured personal loans if you’ve got a weak credit history.

Secured personal loan

If you’re someone who has poor credit but you’re also a homeowner, a secured personal loan could be the answer to your Valentine’s Day dilemma. When a loan is secured it means that it is guaranteed by a solid asset – i.e. your home. If you take out a secured loan with this collateral, the lender could demand repayment taken from your home’s value if you miss a payment. A secured loan will most often mean you can access a lower interest rate than on an unsecured loan, and that you are given a longer period to pay off the money. However, it’s important to be aware that securing borrowing against your property puts it at risk if you can’t keep up your repayments.

Guarantor loan

A guarantor loan could offer you the more favourable interest rates and repayment period of a secured loan, without the need to use your home as security. In essence, this type of loan is guaranteed for you by another individual who must agree to act as back-up should you fall behind on repayments. This person could be a parent or friend, but they must not be financially linked to you and they themselves will need a strong credit score for the lender to agree.

When you want a proposal to be memorable and truly special, the engagement ring is so important. By properly researching different types of personal loan available even to those with poor credit, you can plan a super romantic proposal that will make your partner’s dream come true this Valentine’s Day.


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