4 Tips For Obtaining A Fair Loan Using Jewelry As Collateral

A temporary loan can help you get over a financial hump. To get the cash you need, your jewelry can be used as collateral. If you are new to short-term loans, here are some tips to ensure that you get the best price for your jewelry.

Know Your Jewelry

Before taking your jewelry to the lender, you need to be completely familiar with its characteristics. Know the karat and weight of the jewelry. By knowing these values, you can get a better understanding of what it is worth, which puts you in a better position for bargaining.

If you are selling precious metals, such as gold, check out the current market price. Use it to determine how much your jewelry would be worth if the lender retained ownership of your pieces.

Clean the Jewelry and All Its Parts

Taking the time to clean the jewelry before heading to the lender helps to make it look more valuable and could lead to a better loan offer. In addition to that, you need to ensure that you have all the additional pieces to your jewelry. This can include the extra links for bracelets and watches.

Get an Appraisal

What you paid for your jewelry and what it is actually worth might be different. If you are unaware of what your jewelry is actually worth, you could miss out on a fair deal. An appraisal helps to give you a fair assessment of your jewelry and can provide you with a realistic outlook.

As an added measure, you should consider having a gemological report conducted. The report will provide a detailed assessment of the jewelry's gems. You might be able to use it to barter for a higher loan using the report.

It is important to note that when you are bargaining with the lender, do not disclose how much the jewelry is worth. By withholding this information, you get the chance to assess how likely it is you will get a fair deal.

Understand the Loan Terms

Even though the loan is short-term, the interest and other fees can quickly add up. As a result, you could have difficulty in regaining ownership of the jewelry. To avoid this issue, you need to ensure that you fully understand the terms of the loan.

Review the interest rate, the amount of time that you have to buy the jewelry back, and whether or not there is a grace period. If you are unsure about any of the terms, ask for clarification. Visit http://solsjewelryandloan.net/ for more information.