Three Things To Know About Jewelry Loans
If you need money very quickly and have valuable heirloom jewelry that has been passed down within your family, you can use it as collateral for a loan. It is important to take the time to understand how a jewelry loan works before agreeing to it. The guide below walks you through a few key things to know about getting a jewelry loan.
Your Loan Will Not Be for the Actual Value of the Jewelry
When you get a jewelry loan, it will not be for the value of the jewelry. The lender will assess the value of the jewelry by looking at it closely and testing it to make sure that it is real. Once he or she has determined that the jewelry is real, they will let you know what they are willing to offer you for your loan amount for the jewelry. The amount will be significantly less than the jewelry is really worth because the lender has to be able to make a profit on the jewelry if they are forced to sell it later on down the road.
The Jewelry Still Belongs to You
When you get a jewelry loan, the jewelry still belongs to you, but it must stay at the lender location until the loan is repaid. This is to ensure that you do not take the money and the jewelry and never come back to the lender again. The lender will not put the jewelry on display or try to sell it unless you do not meet the terms of the loan agreement. The agreement will specifically state exactly when the loan needs to be repaid and how much each payment needs to be. It is important to follow this information closely.
You Can Come and Get Your Jewelry at Any Time
You do not have to stick to the payment schedule when making payments on the loan. You can pay it off whenever you have the money together and get the jewelry back from the lender quickly and easily. The lender will give you a receipt for the payments and then hand you your jewelry.
When the jewelry is returned to you, take the time to look at it closely. Make sure that it is in fact your jewelry and that nothing is wrong with it. If you notice any scratches or that it is not actually your jewelry, let the lender know right away. He or she may be able to make any necessary repairs or find the right jewelry for you quickly and easily.
Contact a company like Executive Loan Service to learn more.