Are you in need of fast cash but aren't sure if you will qualify for a an unsecured personal loan? If so, you may want to consider a jewelry loan. These loans use your fine jewelry as collateral, which makes it easier to qualify regardless of your credit. The following questions and answers can help you better understand the process so you can decide whether it is the right option for you.
What type of jewelry is applicable?
While this varies depending on the jeweler offering the loans, in general any valuable piece can qualify. This generally means pieces made of gold or silver, or those containing precious stones. In rare cases, costume jewelry may also be acceptable if it is of high quality and from a sought after high fashion designer.
How is value determined?
This depends mainly on the piece, although the jeweler's preferences also come into play. Modern pieces that can be sold as-is are generally valued by their retail value. Older or dated pieces may be simply valued on the content of the precious metals or stones. Antique pieces may have a more complicated value that is based both on the rarity of the piece and the content of the metals and stones.
What amount of the value is eligible for a loan?
Once a determination of value is made, you will be offered a percentage of the value as your loan. The reason that only a percentage is offered is because the jeweler has to be able to recoup the loan cost and make a profit if you default on the loan and they have to sell the piece. The percentage offered will vary depending on the jeweler.
How long are the loan terms?
These can vary widely depending on the jeweler and on local laws. Many operate similar to pawn brokers, in that they offer short term loans that must be paid within a week to one month. In some cases, you may be able to pay the interest on the loan to extend the loan period. Make sure that you are fully aware of the loan period and how much must be paid to stay out of default, since default will generally result in an immediate loss of the jewelry.
To begin the process of getting a jewelry loan, look for jewelers that offer loans in your area. They will be able to provide you with the specific details of the loan offerings that are available to you.
Contact a company like Sol's Jewelry & Loan to learn more.
