When you do not have good credit, but you do have valuable belongings, you may still be able to get a cash loan. Using valuable jewelry as collateral to get a loan from a cash loan service is actually quite the common practice. However, a lot of people are only familiar with using something like a vehicle or piece of real estate property as collateral to obtain a loan. Take a look at a few things you may want to know if you plan to seek a cash loan service using a valuable piece of jewelry.
Can you only get a cash loan with jewelry at a pawn shop?
While a pawn shop may be the most common place to seek a loan using jewelry as collateral, you do have other options. Many cash loan services accept jewelry as collateral much like they do other valuable pieces of property. In many cases, a cash loan service will offer a better financial solution compared to a pawn shop. For example, you may have only a brief amount of time to pick up your jewelry and pay back what you borrow at a pawn shop. However, a cash loan service may spread out your loan term over several months.
What kind of jewelry can be used as collateral for a cash loan?
Cash loan services will be looking for jewelry pieces that can stand well for the value of the loan. Therefore, they will primarily only accept jewelry that is made of precious metals, contains valuable gemstones, or is made by a certain brand or craftsman. For example, a 24-carat gold necklace with a diamond pendant may be valuable enough to borrow money against through a lender. However, a basic sterling silver ring with low-quality gemstones will likely not be good for collateral because the piece likely will not have a high resale value.
How can you make sure your jewelry will be accepted as collateral for a cash loan?
Lenders that offer loans using jewelry as collateral typically require a few items to accept a piece of jewelry. For one, you may have to show proof of ownership, which may be in the form of a purchase receipt or product registration. You may also have to get a certificate of authenticity on jewelry pieces that contain large and valuable gemstones. Each cash loan service can have its own guidelines, so be sure to discuss those requirements with the service provider in advance.