Understanding Loan Terms

How Do Diamond Jewelry Loans Work?

3 October 2018

Stanley Simmons

They say diamonds are a girl's best friend, but whether you are a guy or a girl, if you have a diamond, you could truly have something that is considered helpful as a friend. Because upscale diamond jewelry holds its value well, you can usually use your diamond jewelry as collateral to obtain a loan. Some pawn shops offer cash loans for pricey jewelry pieces, but real diamond jewelry loans are usually the better option. Here are a few questions you may have about diamond jewelry loans and the answers you want to know.

How do you get the best loan offer for your diamond jewelry?

When you are seeking out a loan by using your diamond jewelry as collateral, it is always best if you know how to get the best loan offer. Here are a few things to remember to help you get the best offer:

Bring along any certifying documents for the diamond piece.
Make sure your diamond jewelry piece is clean and any markings are easily discernible.
Don't hesitate to get more than one loan offer instead of trusting specifically one appraisal and offer.

How is a diamond jewelry loan different than pawning your jewelry?

Obtaining a diamond jewelry loan is typically done through a licensed diamond broker. Therefore, you are working with a professional who knows a great deal about the diamonds you bring in, their value, and what would be a fair loan offer for a specific piece. While a lot of pawn shop owners do know a bit about jewelry, most of them are not specifically trained to know a lot about diamonds and their actual value. A diamond jewelry loan from a broker may operate on similar, or even the same, loan terms as a pawn shop. So you can usually get shorter loan terms if that's what you want, but some diamond brokers offer longer terms than what a pawn shop can.

What can you borrow money for with a diamond jewelry loan?

Diamond loans tend to be formed much like a personal loan or even a pawn loan in that you may not be required to give a reasoning or explanation as to why you need funding. You will be asked certain things about your means to pay back the loan in some cases, and you may be required to have a credit check with some lenders, but that is not always the case if the diamond will stand good for the amount you wish to borrow.

Share

About Me

When was the last time you realized you were in the red financially? Although most people don't think about their finances on a day to day basis, it can be easy to find yourself living paycheck to paycheck if you aren't careful. I began thinking carefully about the financial implications of some life decisions I was making, and I knew I had to make a difference. I talked with a loan officer about getting things together, and he was instrumental in helping me to work things out. Read more about my financial successes and failures on this little website. You might be able to avoid some of my previous mistakes.