An alternative to people who need fast cash is to loan their jewelry. If you are in this situation, then it can really be tough for you to make this personal decision. It is either you pay your bills or keeps your jewelry. However, you don’t have to go this way. You will be able to keep your jewelry even while you are loaning it to pay your bills. You don’t have to sell your jewelry but you can get cash on it by loaning with the value of your jewelry. You can get a cash loan from a pawnshop using your jewelry as collateral for a certain number of days term. If you have high-end jewelry, then you can use this as a collateral to loans offered by jewelers or pawn shop owners which you can then use to pay your bills. Make sure that your jewelry is really valuable so that the jewelry will approve your loan.
There are some states were jewelers can charge up to 25% a month on a loan. It can be an unreasonable rate for interest if it reaches this high. If a reputable jeweler charges between 5 and 20%, then this interest rate is good enough. This will depend on the value of your jewelry. Generally, if you are seeking for a large loan, then your jewelry is valued higher, and the percentage rate you are charged is lower. The percentage rate of a diamond collateral is lower than a lower valued pair of earrings.
The appraised ‘loan value’ of the collateral and its condition and the company’s ability to sell the item determines your loan value. The loan amount they will offer you will not depend on its new retail price but on its wholesale or resale value.
Make sure that the pawnshop is insured and that you are aware where they store the jewelry. The jewelry that you loan should be insured and secured and kept in a safe deposit box. Choose a pawnshop that is known to take good care of their client’s jewelry.
It is important to get an appraisal report from the pawnshop with all the details which includes pictures of the jewelry that was loaned. It is also important that the jewelry you have loaned are described properly and that you get your exact jewelry when you return to get it back.
Not any kind of jewelry are loaned by pawnshops. If you are turned down on your jewelry, you should not feel offended. If pawnshops offer cash loan for jewelry then you should understand the risk that the jeweler is taking offering cash loans for jewelry.
You will have a good experience if you follow these rules in jewelry pawnshop loans.