Are Jewelry Loans Really a Better Alternative to Bank Loans?

It’s been a tough few years for Americans’ finances, from pandemic job loss to rapid inflation and now bank failures that have many fearing a repeat of the Great Recession of 2008. In these uncertain economic times, it’s not unusual to find yourself in need of extra cash. 

When you need capital quickly, you may be tempted to take out a personal bank loan. However, there’s another option that is often overlooked: collateral loans. Collateral loans are a great alternative to traditional bank loans, as they offer several benefits that make them a more attractive option.

Faster Processing Times

One of the biggest advantages of jewelry loans is that they have faster processing times than traditional bank loans. Since jewelry loans are typically secured by the value of the collateral, which limits the financier’s risk, there is no need for a lengthy credit check or approval process. 

Instead, a loan on diamond jewelry can be approved and processed quickly, usually within one day or even a matter of a couple of hours. Cash is provided on the spot, so you can access the funds you need immediately without having to wait for days or weeks for an answer from the bank.

No Credit Score Impact

Many Americans have seen their credit score take a hit in the past three years, so avoiding any further negative impact is crucial. When you opt for jewelry loans, there’s never any impact on your credit score.

Applying for a personal bank loan can impact your credit score even if you’re denied the loan because the bank often initiates hard credit pulls during your application process. When you secure your loan with collateral such as diamond jewelry, however, there’s no need to assess your credit history, so your jewelry loan pawn shop won’t run your credit.

Your credit score also doesn’t play a role in determining whether or not you get a loan. Whereas personal bank loans can be denied due to a low credit score, you can secure a collateral loan no matter how low your credit score is because the value of the loan is determined by the value of your collateral. If you don’t repay the loan, the jewelry loan pawn shop will simply keep the collateral as repayment. This also means that failure to repay the loan will not damage your credit score at all.

Flexible Loan Amounts

When you apply for a personal loan, there’s very little flexibility offered. You may receive an offer for less money than you need or you may be responsible for much more credit than you need. There are also dozens of hidden fees, and you may even need a co-signer depending on your age and financial status.

With a collateral loan, you can decide how much money you need to borrow, as well as the terms of repayment. This means that you can tailor the loan to fit your specific needs and budget. After all, the value of your loan is dictated by the value of your collateral, so you can loan one or more items of varying value to achieve the loan value you need to cover your expenses. 

Furthermore, you can often negotiate the interest rate and other terms of the loan so you can get the best deal possible. Since there’s less risk for the jewelry loan pawn shop with secured jewelry loans, they’re often willing to give you more leeway in negotiation than a bank accepting unsecured debt they may never get back.

If you need cash fast and have valuable items that you’re willing to temporarily part with, a collateral loan from Watch & Wares is an excellent solution that offers many practical benefits. From low-interest rates to generous loan terms, all with no effect on your credit score, jewelry loans are the option that many Orange County residents prefer for sourcing cash fast. 

At Watch & Wares, we offer some of the most competitive appraisal pricing in the area, and our insurance rates are always state-regulated. We have a generous four-month loan term with a 10-day grace period, and we’re always happy to renew your loan in exchange for the full repayment of interest owed. To find out more about our collateral loan process or to receive an appraisal on your luxury item, contact us at 714-731-9600 or fill out our online contact form today. We would be happy to schedule an appraisal appointment at your earliest convenience.