An alternative to people who need fast cash is to loan their jewelry. If you are in this situation, then it can really be tough for you to make this personal decision. If you want to keep your jewelry then do so and look for another source of cash, or you can loan your jewelry and pay your bills as well. 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. You don’t have to sell your jewelry but still obtain the loan you need on the jewelry’s value. Cash loans are offered by jewelers with your jewelry as collateral for a certain number of days. If you have high-end jewelry, then you can use this as a collateral to loans offered by jewelers or pawn shop owners which you can then use to pay your bills. If you really want the jeweler to give you the loan, then you need to make sure that your jewelry is valuable enough.
There are states where they are allowed to charge up to 25% interest a month. But this is too high an interest. If a reputable jeweler charges between 5 and 20%, then this interest rate is good enough. The value of your jewelry determines the rate. Generally, if you are seeking for a large loan, then your jewelry is valued higher, and the percentage rate you are charged is lower. A pair of earrings has lower value than a diamond so the diamond will have a lower rate than the earrings.
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.
Ask the pawnshop if they are insured and the place 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. 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.
Not any kind of jewelry are loaned by pawnshops. 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. 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.