Frequently Asked Questions About Jewelry Lending
Collateral loans are a great way to get quick cash without going into debt or affecting your credit score. However, with something as valuable as fine jewelry, it’s natural to be hesitant and have questions about the process. If you want to make sure that you’re fully informed about the process before choosing a local pawn loan professional or handing over your precious estate jewelry, here the answers to some of the most frequently asked questions about jewelry lending.
How do you get a loan secured by your jewelry?
If you have valuable fine jewelry, whether it’s modern or antique estate jewelry, it’s easy to get a secured pawn loan using your jewelry as collateral. Simply take your jewelry to the best jewelry and loan shop in your area, such as Watch & Wares, and have them assess the value of your item. Based on the evaluation, they’ll offer a loan amount that reflects a percentage of your jewelry’s resale value.
If you accept the loan offer, you’ll receive a contract detailing the loan amount, interest rate, repayment terms, and due date. At Watch & Wares, our interest rates are regulated by the state and we offer standard four-month loan terms with a ten-day grace period on all collateral loans.
Do pawn and loan shops pay well for jewelry?
Pawn and loan shops determine their loan offers based on the resale value of your jewelry, ensuring that they offer fair market values. However, it’s important to keep in mind that lenders will use your jewelry to recover their costs of you default on the loan, so your offer will never be the full amount that your jewelry’s worth.
If you want to get the absolute most money possible for your pieces, you’ll need to sell your gold jewelry for cash. However, this doesn’t allow you to recoup the item at any time, so it’s not an option for everybody, especially if they have sentimental estate jewelry.
Do you need to have good credit to get a pawn loan?
One of the biggest advantages of collateral loans is that you don’t need to have good credit — or any credit history at all — to get one. Unlike traditional bank loans, which are unsecured and depend on your credibility to recoup the money, collateral loans are secured by your estate jewelry, Rolex watch, or other luxury item.
This means that the jewelry lending service is taking minimal risk, as they can keep and sell your item to recover the amount of money they lent to you if you default. As such, lenders don’t have interest in your credit score or financial stability, so there’s no required credit check, proof of income, or employment verification. Anyone with a valuable piece of jewelry qualifies for a jewelry loan, making it a preferred option for many.
What happens when you finish paying off the loan?
Once you’ve repaid your loan in full — including any interest and fees included in your loan terms — you can return to the pawn loan shop for your items. Simply bring your loan agreement and final payment, fill out the necessary paperwork, and you’ll be able to bring your jewelry home same-day. Since it’s stored securely, you can have complete peace of mind that your estate jewelry is safe and returned to you in the same condition as when you pawned it.
What happens if you don’t pay the pawn shop back?
If you are unable to repay your loan, the lender will keep your jewelry as repayment. While this can be difficult to stomach if you have a piece of sentimental estate jewelry, the good news is that failing to repay a collateral loan won’t ever affect your credit score or lead to debt collection.
The best pawn and loan shops will also offer options such as extending the term of your loan, maximizing your chances of repayment. At Watch & Wares, we allow you to renew the terms of your loan if you pay off all of the interest owed. We also offer a ten-day grace period on all collateral loans, giving you extra time to repay if necessary. If you think you’ll need an extension or renewal, it’s always best to contact your jewelry lending professional and ask about their available options.
If you’re looking for the premier destination for jewelry lending in Orange County, look no further than Watch & Wares. We offer secure and reliable jewelry and Rolex watch loans with some of the most competitive rates in the industry. Watch & Wares is the top choice for pawn shop loans in the area, which is why we’ve maintained a five-star rating after more than three decades in the business. To experience the Watch & Wares difference for yourself, give us a call at 714- 633-2030 or contact us online to schedule an appointment for your free pawn loan appraisal today.