Do you need a loan for the first time because you are in a financial bind until your next payday? If you have anything to use as collateral like jewelry, you might be able to get the money that you need in a timely manner. This article will give you more insight about getting a loan by using jewelry as collateral.
What is a Collateral Loan?
Basically, when you get a collateral loan, you will be giving your jewelry to the loan company as security that you will pay the money back. A collateral loan is actually one of the easiest ways to get the money that you need until your next payday. You can retrieve the jewelry back as soon as the loan is paid back in full. There are also several ways to go about obtaining a collateral loan. For instance, you can take your jewelry to a pawn shop or a company that specializes in providing loans for jewelry.
Can Any Type of Jewelry Be Used as Collateral?
You cannot use just any type of jewelry as collateral for your loan, and some companies may not accept certain types of metal, such as silver. The jewelry must have enough value to be resold and benefit the loan company if for some reason you are not able to pay the money back. One of the common types of jewelry that is accepted by collateral loan companies is real gold. The amount of money that you are loaned will be based on how pure the gold is. The type of stones that are inside of the jewelry can also have an effect on how much money you can get from the collateral loan company.
What Happens if a Collateral Loan Can't Be Paid Back On Time?
If you are unable to pay your loan back by a certain date and still want to keep your jewelry, it is possible to get an extension. However, you will have to pay a higher interest rate if you need more time to pay the money back. If you fail to pay the loan back after a certain amount of time has passed and multiple extensions, it will likely become the property of the loan company. You will then have to buy it back from them when it goes up for sale, unless another customer buys it first. Get a collateral loan for your jewelry as soon as you can.Share