There’s no questioning the popularity — and relevance — of jewelry loans. Pawnshops may have been around for centuries, but their comeback as one of today’s more preferred lending facilities could never be more perfect, as Americans are dying for non-predatory financial products.
At a glance, jewelry loans are similar to other sources of instant cash. They require collateral of considerable value and with enough demand to be resold immediately in the market. But, they actually have a huge difference with other short-term cash loans when it comes to flexibility and leniency.
You may not be that familiar with how pawnshops work if you never borrowed money from jewelry brokers, so your assumptions toward them are most likely incorrect. HullLoanSystem.com explains some of these myths:
Pawn Brokers Run a Credit Check
Nobody would blame you to mistake them for wanting to review your credit file before talking business. After all, this is customary to most loans. No jewelry broker would run a credit check before approving your loan application.
This is most especially true in pawnshops specializing in diamond. They’d just appraise your item, analyze its condition, and measure how fast it can be re-sold should you default on your repayments to determine its market value.
Missing Payments Would Appear on Your Credit Reports
Another wonderful thing about jewelry loans is that they wouldn’t have an impact on your credit score whatsoever. Any payment delinquency would remain between you and the broker — the credit unions would never know about it.
Offers are Non-Negotiable
It’s easy to think that any offer by the jewelry broker is cast in stone with how the appraisal is done objectively. Contrary to popular belief, you have all the right to negotiate for a fair price and terms. If you have a good story behind an exquisite piece, your unique personal situation can help increase the loan amount.
Jewelry loans are relatively favorable to borrowers that love to access instant cash with fewer risks involved. They could come with thoughtful features to boot, so be sure to shop around and find a deal that makes the most sense to your financial situation.