Pawning jewelry is one of the ways you can get cash that you need urgently. This is a tough decision to make since jewelry may be very valuable to you. It is either you pay your bills or keeps your jewelry. There is a better solution for your problem. 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. This type of loan can help you especially if you need cash to pay your bills and you own high-end jewelry. If you really want the jeweler to give you the loan, then you need to make sure that your jewelry is valuable enough.
Charging interest rates up to 25% a month is allowed in some states. This kind of interest is actually too high. What you should do is to look for a jeweler with a good name that only charges interest between 5 and 20%. The value of your jewelry determines the rate. In general, if you are looking for a big loan, then the value of the jewelry will be higher with a lower percentage of interest. So, if you have a very expensive diamond as a collateral then its percentage rate should be lower than earrings of a much lower value.
The appraised ‘loan value’ of the collateral and its condition and the company’s ability to sell the item determines your loan value. They will offer you a loan amount which depends on the wholesale, or its resale value and not the new retail price.
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. You should be assured that your jewelry will be taken good care of.
Make sure that the pawnshop gives you an appraisal report with all the details including pictures of the jewelry that you have loaned. It is important that they describe the jewelry properly and that get back the same jewelry that you have loaned.
There are many types of jewelry that pawnshops do not offer loans to. The jewelry you use for applying for a loan can be turned down by the pawnshop and when this happens you should not be offended. They make sure that the jewelry is high-end since loaning cash for jewelry is actually a very risky thing to do.
You will have a good experience if you follow these rules in jewelry pawnshop loans.