Learning More About Precious Stones Used For Jewelry

If you own jewelry that has a cash value, then you can use it as a way of getting a fast cash loan. Here, a company lends you money and holds your jewelry as collateral. When you repay your loan and its interest, you get your jewelry back.

While this can be a fast and easy way of accessing extra cash, you should do some research into lenders before you choose one to use. To find out more, ask companies the following questions.

1. What Percentage Do They Pay?

If you secure a cash loan with your jewelry, then the lender will give you a percentage of the jewelry's value. They won't pay as much as it is worth.

The company has to manage its own risk here. If you default on your loan and don't repay it, then they won't get their money back. They will then sell your jewelry according to the terms of their agreement. If they gave you less money than its actual value, they will then recoup some of the loan.

Companies pay different percentage rates in this sector. So, you should check how much companies pay when you talk to them before you decide which one to use.

2. How Do They Value Jewelry?

If you use a company with a local store, then you can take your jewelry to them to be valued before you discuss the terms of your loan. You should look for a professional valuation here, especially if you have high-value pieces.

If you use an online lender or one in a different location, then your valuation works differently. For example, these lenders might give you a ballpark valuation based on your description of the jewelry. You then mail pieces to them.

Some companies will pay insured shipping costs at this point. Once they receive your jewelry, they give you a final valuation offer. If you accept the deal, they keep your jewelry and release your loan; if you don't, they return it to you.

3. Do They Offer Secure Storage Services?

You need to know that your lender will store your jewelry safely and securely. They should give you proof of insurance.

Some companies also offer long-term storage solutions as a line-of-credit option. For example, once you pay off a loan, you can leave the jewelry with the lender. If you need to borrow against it in the future, you get cash faster as the company already holds your pieces.

You will pay a fee for storage services. However, your lender will also keep your jewelry safe, so you don't have to worry about arranging your own secure storage.

To get answers to these and other questions, contact cash loan services that offer jewelry-secured loans.