subject: If You Need A Jewelry Loan, Consider A Pawn Shop [print this page] Jewelry loans are defined as loans made against collateral, which can be gold jewelry, gold coins and diamond jewelry as well as fine watches. These are easy, fast and convenient ways to secure a loan mainly because the credit and background checks as well the requisite paperwork are significantly less than any other type of loans. This is because the jewelry serves as the collateral so the lender has a way to recoup his investment (principal plus interest and other charges) by selling the piece in case the debtor fails to pay the loan.
But don't just go to any bank, credit union and other financing institution for your jewelry loan either. Your best bet is a reputable and reliable pawnshop for several reasons.
First, the process of applying for and then being approved for the loan is the fastest, easiest and most convenient in the business. Present the jewelry being used as collateral, let it be appraised for its value, and then negotiate for the total loan and voila! Your loan proceeds will be in your hands in less than an hour.
Unlike in banks, credit unions and other financing institutions where minimum requirement must be met (i.e., credit checks and legal paperwork), pawnshops will accept the jewelry as collateral for as long as these are rightfully yours. There are no credit checks although it must be noted that pawnshops with legal operations are obligated to report any suspicious activity regarding possible stolen jewelry.
You will have the loan proceeds (principal less applicable charges) in your hands in less than an hour.
Second, the loan duration is generous than most other venues for jewelry loans. Most, if not all, pawnshops hold the loan for a maximum of 60 days - reasonably sufficient time to repay the principal plus the applicable charges and, thus, redeem the jewelry.
If you cannot redeem the jewelry within the grace period, you can always extend the term by another 30 to 60 days depending on the pawnshop policies. You must pay for the finance charges, which can include the interest, the set-up fee, storage fee, and notification fee. You should then have more time to save the money to redeem the jewelry in the future.
Well, of course, many individuals will point out the high finance charges of many pawnshops but it all depends on the pawnshop you chose in the first place. Do your research, choose the best pawnshop and learn to be a savvy debtor.
