How Jewelry Loans Work & Why They Are Becoming Popular
You have probably heard the term “Jewelry Loan” in today’s economy but may not really know how they work. The following article will work to answer your questions and provide ideas for taking advantage of jewelry loans (in Orange County or elsewhere) to help you make ends meet.
Basically, a jewelry loan provides an excellent means for gaining instant cash. Instead of going to a local bank and applying for a loan based on your credit score and credit history, a piece of valuable jewelry is used as collateral for a cash loan.
You may be thinking that the concept sounds much like a collateral loan. In all actuality, they are one in the same. The only difference may be found in where you gain the loan. There are many high-end collateral shops or cash for gold brokers who specialize in loaning top dollar for top quality pieces.
The jewelry loan process is quite simple.
- First, you select a certified broker who specializes in such loans. Second, you have the jewelry analyzed and appraised.
- Next, the broker will reveal exactly how much cash they will grant for a given piece. You then have the option of borrowing the full amount or a fraction thereof.
- Finally, the terms and conditions of the loan will be spelled out and you can either take the deal or walk away.
- Once you have agreed to the terms, you are given cash on the spot. You will then be required to make monthly payments until the loan is paid off in full. If by chance you default on the loan, you will most likely lose your jewelry to the broker.
The beauty of such a loan is that you are never penalized by paying it off early. Also, approval is instant regardless of your credit history or score.
Why Jewelry Loans Are Becoming So Popular
Without a doubt, non-traditional loans are becoming very popular in today’s economy. The reason is quite simple: traditional banks aren’t providing small loans as frequently as they once did.
In the olden days, men and women looked to local banks to find small business ventures or emergencies. However, because of the credit crunch and plummeting consumer credit scores, individuals are seeking more creative options for gaining funds.
Because of the high demand, brokers are offering more competitive rates for jewelry loans, cash advances, payday loans, and auto title loans.
If you have a piece of jewelry that you would like to use as leverage for a jewelry loan, carefully research your options. Additionally, you should be aware that cash for gold brokers are willing to pay top dollar when you sell gold, silver or other precious metals and stones.