The Do's And Don'ts Of Getting A Jewelry Loan
If you need money, you may be thinking about taking out a jewelry loan. Jewelry loans are typically given by pawn shops, but some jewelry companies and antique companies also offer these loans. When this type of loan is given, your jewelry is used as collateral in exchange for money. Once the loan is paid back, your jewelry is returned to you. If you fail to pay off the loan, the jewelry can be sold to recoup the cost of the loan. If this is your first time taking out a jewelry loan, here are a few of the do's and don'ts you will want to know.
Do Know the Value of Your Jewelry
Before you go to take out a loan on the jewelry, stop by a trusted jewelry store and have the jewelry appraised. This will let you know the value of the jewelry, ensuring you get a fair loan amount for it. Having this appraisal can also come in handy if your jewelry is damaged or goes missing. It helps prove the condition of your piece of jewelry and the value in case you need to file an insurance claim.
Don't Expect a Loan for the Full Value
When you are taking out a jewelry loan, do not expect to get a loan for the full value of the jewelry. This is because the lender typically sells your jewelry for less than it is worth if you fail to pay your loan, as their customer base typically won't pay full value. The exact amount you can expect to get varies from business to business, but many only offer about half of what the jewelry is worth.
Don't Expect to Leave With the Jewelry
When you are taking out a jewelry loan, your jewelry stays with the lender as collateral. For this reason, you may want to use pieces of jewelry you do not wear often in lieu of items you wear frequently, such as your wedding ring.
Do Ensure the Company Carries Liability and Theft Insurance
Lastly, take the time to ensure the company you are getting a jewelry loan with carries liability and theft insurance. They will have possession of your jewelry. You want to ensure your jewelry is covered if the building goes up in flames or they get robbed and your jewelry is stolen.
If you have poor credit or need money quickly, and have valuable jewelry, this type of loan may be perfect for you. Learning the do's and don'ts will help you prepare as you take out a jewelry loan. To learn more, contact a company like C & L Gold & Diamond Brokers.