Jewelry loans are a great option for many people. If you are in need of quick cash, getting a jewelry loan is a lot safer than other types of loans, like a payday loan. Here are some reasons why a jewelry loan is such a better idea.
1. You Can Get A Higher Loan
First of all, you can generally get a higher amount in money with a jewelry loan than with something like a payday loan, since the lender will give you the loan based on the value of the jewelry. So where you might only be able to get $500 at a payday loan business, you can get up to thousands of dollars on your jewelry if the piece is expensive. A $5000 wedding ring will likely get you a lot more than $500 in a loan.
2. You Avoid A Credit Check
Another great thing about jewelry loans is that you don't have to worry about proving your credit. At any other place, they are going to go through a series of preliminary qualifications to see if you can even get the loan. With a jewelry loan, you get to use the piece of jewelry as collateral, so they don't care what your past credit has been. This allows people who would otherwise not be able to get a loan to get the money they need because the jewelry is a substitution for the credit check.
3. You Avoid Paying Higher Interest
Many people try to avoid a payday loan because of the high interest. But when you are in a financial bind, a payday loan might seem like the only option. Then over time, the interest kills you and you end up paying much more than what the loan was worth. This is not the case with jewelry loans. Since they already have the jewelry, they can give you a reasonable interest rate so that it is easier to pay off.
4. If Things Don't Work Out, You Can Just Forfeit The Jewelry
Lastly, you always know that if you aren't able to pay back the debt, you can just forfeit the piece of jewelry and be done. There have been other kinds of loans that have ruined people, even caused them to claim bankruptcy because they couldn't pay them back. You know that if needed, you can walk away from this loan and still be fine.
These are just four of the reasons why a jewelry loan is a good idea.
Share22 March 2017
When I began my first business selling sports equipment locally, I knew the sports-world well, and I knew how to run a business. One thing I did not know a lot about was the financial world. I had never applied for a loan in my life other than when I financed my car with the dealership in-house financing. My first application at a large bank was denied. I began looking into my other options, and I found that there were more lenders for new businesses than I realized. I applied at local credit unions, local banks, and other business lending services. I was able to secure more funding than I even expected, and my credit is just average. I created this blog to help other new business owners realize that there is funding out there. You just have to find it and apply! Don't give up on your dream.