Tiffany Financing Options: Everything You Need to Know

Tiffany & Co. is known for their beautiful and high-quality jewelry, and they also offer high-end home decor, accessories and even fragrances. But their items come with high price tags. A one-carat diamond that’s an H color, for example, may start around $14,900, and that’s before it’s even placed into a setting.

Tiffany’s financing plans offer 12 or 24 months of repayment for eligible credit cardholders. But you have other options like a personal loan to consider. Click below to learn more.

• Tiffany & Co. credit cardholders may qualify for a promotional APR
• 3 alternatives to Tiffany’s financing plans
• The bottom line on Tiffany & Co. financing

Tiffany & Co. credit cardholders may qualify for a promotional APR

The Tiffany & Co. credit card offers certain cardholders a 12- or 24-month financing plan for qualifying purchases. Either plan may be worth considering if you have a Tiffany & Co. credit card.

If you don’t pay off your full balance within the 12- or 24-month period, you won’t receive deferred interest, but you will be charged the standard APR for the remaining balance. With the 12-month plan’s 0% promotional APR, the lack of deferred interest is a benefit over many credit cards with promotional APRs (which may have deferred interest).

Your standard APR will vary based on your purchase price and the state of your home residence, and range from 8% to 21%. There will also be other factors to consider when determining if Tiffany’s financing plan is right for you, including:

• Annual fee: None
• Minimum monthly payment: $20
• Late payment fee: $0-$10, depending on your state
• Returned payment fee: Some states won’t have a returned payment fee, though residents in Arizona, Texas, California, Iowa, New Jersey, and Utah will pay $10-$25 in returned check fees depending on their state

Are Tiffany & Co.’s credit card payment plans right for you?

The company website doesn’t provide in-depth qualification requirements for its credit card or payment plans. But you’ll need to submit to a credit check and an assessment of your current income. Once on a payment plan, you’ll need to meet the following requirements to benefit from the promotional APR:

• Make on-time payments
• Pay at least the minimum amount due
• Ensure no payments are returned

If you can get on the 12-month repayment plan, you could save a lot of money on fees, assuming you can repay the vast majority of or the entirety of your balance within that period. The lack of deferred interest is a major plus, but with APRs as high as 21% after the promotional APR drops off, this option may be a poor choice for those who plan to carry their debt well after those initial 12 months.

The viability of the 24-month plan boils down to the APRs you’re quoted for with other financing options. A 7.99% APR may be a strong contender compared to your credit card, but depending on your credit profile, you could qualify for a personal loan with a lower APR (and a longer repayment term, if you need it). The 24-month payment plan comes with the same downside as the 12-month plan: Once the promotional period ends, you could be slapped with interest charges up to 21%.

3 alternatives to Tiffany’s financing plans

1. Personal loans
2. Credit cards
3. Secured personal loan

1. Personal loan

Personal loans are a flexible financing option that offers fixed interest rates and terms. There are few restrictions on how you can use funds, too. That means you could take out a loan to pay for your Tiffany purchase and, say, cover wedding costs.

As a form of unsecured debt, you don’t need to back the loan with collateral to qualify. Instead, your financial picture will be weighed to determine your eligibility, interest rates and terms. You can expect the following factors to be considered in your application:

• Credit score
• Debt-to-income ratio
• Employment history

That said, interest rates vary wildly based on your credit profile. The average APR for borrowers with a credit score of over 720 was 7.27% in Q1 2019 but 85.92% for those with subprime credit, according to a LendingTree study on personal loans.

Should you finance with a personal loan?

To determine whether this financing option is more affordable than Tiffany’s payment plans, you’ll need to shop lender terms. In many cases, you can check APRs you’d potentially qualify for with a soft credit check (which won’t affect your score). If you find favorable personal loan terms and need longer than 12 months to pay off your purchase, then this type of credit may be a viable option.

2. Credit card

Depending on the APRs you’re quoted for with Tiffany’s financing plans and personal loans, a credit card may be more affordable. But make no mistake: Credit card debt is expensive and your total repayment cost will be unpredictable due to the variable interest rate. High credit card debt could also adversely affect your credit by increasing your debt-to-income ratio.

However, credit cards do grant you access to revolving funds, which you can use as you see fit. Further, if you pay off your balance before the end of the month, you’ll avoid any interest charges on your purchase. That could be worthwhile if you have the cash to cover your Tiffany purchase but want to earn points, miles or cashback with your rewards credit card.

There are several credit cards that offer 0% APR for 12-,15- or 18-month periods after you first open the account, allowing you to repay your balance interest-free. Some of these 0% APR credit cards will also offer cash bonuses for new customers, which can reduce your overall purchase cost (assuming you apply the cash to your balance). Unlike with Tiffany’s financing option, however, you can expect these cards to come with deferred interest.

Should you finance with a credit card?

If you plan to get a credit card with a promotional 0% APR and can repay your balance in full before deferred interest kicks in, then this option may be best for you. That’s because Tiffany’s credit card only offers 12 months of 0% APR; a new credit card may come with up to an 18-month promotional period.

But if you don’t plan on repaying your debt before the promotional period ends — or you don’t qualify for a card that comes with a zero-interest offer — then shop your options. Depending on your credit, you may qualify for a more competitive fixed interest rate with a personal loan, or find that Tiffany’s financing plans are more affordable due to the promotional APR.

3. Secured personal loan

A secured personal loan works similarly to a personal loan, except you’ll need to put down collateral to qualify. This collateral may include money in your savings account or a certificate of deposit, or some personal property like your car. In return, you may find it easier to qualify than an unsecured loan — and that you could get lower interest rates.

The value of your collateral will affect how much you’re eligible to borrow. That means you may qualify for a larger loan than you might get elsewhere. The flip side is that you’ll be putting something you belong on the line in order to make (what is likely) an unnecessary purchase.

Should you finance with a secured loan?

The key benefit of a secured personal loan is the lower rates. But this financing option is a bad idea if you have a habit of missing payments or don’t have a clear path to repayment; that’s because you’ll lose your collateral if you default on the loan.

But this financial product can make sense if, say, you have enough cash in savings to make your purchase but you don’t want to empty your account. You’d get a lower rate and could quickly pay off the loan if needed. As a general rule, though, it isn’t a good idea to take out a secured loan for something you don’t need.

The bottom line on Tiffany & Co. financing plans

Whether you’re shopping for a Tiffany engagement ring or some other finely crafted item, you need to carefully consider your purchase before committing to debt. For example, you should ask yourself whether you’d be better off saving money over a year or longer so you could pay for the purchase in cash.

If you’ve made up your mind to finance your Tiffany purchase, take your time in researching your options. Many lenders and credit card companies allow you to check your eligibility and potential terms with a soft credit check. Comparing these options could save you a lot of money depending on the size of your purchase.

Specials are current as of date of publishing.