Pawning jewelry is one of the ways you can get cash that you need urgently. 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. You don’t have to do this anymore nowadays. You can now get a loan to pay your bills and at the same time and be able to still own your jewelry. If you apply for a jewelry loan, then you will be able to obtain cash without selling your personal things. 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. 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. But this is too high an interest. If a reputable jeweler charges between 5 and 20%, then this interest rate is good enough. The rate of the loan will depend greatly on the value of the jewelry. 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 factors that affect the value of your loan, is the appraised value of the jewelry, its condition, and the ability of the company to sell your item. 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. Make sure that your jewelry is 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. Check the description of the jewelry if it is correctly written and that you get back the same jewelry when you have repaid your loan.
There are many types of jewelry that pawnshops do not offer loans to. Don’t feel offended if the pawnshop turns down your jewelry for loan. It is a risk for jewelers to give cash for jewelry and so they make sure that the jewelry you loan is high-end.
Following these rules in pawnshop jewelry loans will give you a good experience.