When an emergency arises and you need to get money quickly, consider getting a jewelry loan. A jewelry loan is not overly difficult to get because you do not have to provide receipts, proof of ownership, or even have good credit to get the loan. The guide below walks you through a few things you need to know about getting a jewelry loan.
Outdated and Broken Jewelry Can Be Used to Get a Loan
Many people think that the lender will only give them a loan on jewelry that is very valuable or in pristine condition. That is not the case at all though. It is possible to get a loan based off of the value of the gold, silver, or platinum that the jewelry is made of. The lender would determine how much gold, silver, or platinum they would get if they melted down the jewelry to make something else and base the loan off of that value. The jewelry will not be melted down unless you do not pay your payments on the loan on time.
Do Not Waste Your Time Cleaning the Jewelry
If you need money in a hurry, do not waste time trying to clean the jewelry. The lender will have the equipment needed to clean the jewelry thoroughly, if he or she feels that it needs to be done. There is no need for the jewelry to be cleaned when you take it to the lender because he or she will only be storing the jewelry until you repay the loan. If you default on the loan, the jewelry can then be cleaned and sold.
Payment Plans Can Be Arranged
Many people make the mistake of thinking that they have to repay the loan in full right away. That is not the case, though. Many lenders will give you an extended period of time to repay the loan, but require you to make regular payments toward the loan amount. When you sign the lending agreement, you will learn the specific amounts that are due and the dates that they must be made by so that you never have to worry about defaulting on the loan.
The lenders will give you the loan based off of the value of the jewelry, not off of what they can sell it for or for what you paid for it. It is important to understand that your loan will be for significantly less than you paid for the jewelry when you bought it brand new.