If you are in need of some quick cash, you could certainly head to the bank or even a payday loan shop and try to get approved. But while this would get you the cash infusion you need, shorter loans do tend to have some drawbacks, such as higher interest rates. One option you may not have considered that would still get you the money quickly would be a collateral loan at a jewelry shop. Here are three reasons to consider a collateral loan instead of going for a more traditional option.
No Credit Check
There may be an exception here or there, but for the most part collateral loans do not require a credit score report. The jewelry shop owner won't care as much if you default on the loan because that means that they get to keep your jewelry.
You Will Be Motivated
When you take out a traditional loan, you will get maybe a slip of paper documenting the transaction, but it can be easy after some time to make the loan less of a priority and only pay back the minimum amount, generating more interest charges over the long term. But if you put up some jewelry that may be important to you for the sentimental value, you will likely be better motivated to make sure that you pay off the loan as quickly as possible so that you can get your jewelry back. There's nothing like the thought of losing a family heirloom to get you focused on the task at hand.
The amount of interest that a jewelry shop can charge on collateral loans is set at the state level, so the exact amount will be different based on where you live and on the individual deal that you negotiate with the jewelry shop. But in general, because you are putting something up of value, the interest will be lower than many other fast cash options, like payday loans. This can give you a little more time to get back on your feet and repay the loan without racking up huge interest charges, provided you don't mind not having the jewelry for a bit.
If you need a quick loan, there might be a better option than heading to the bank or a payday loan shop. Look for a jewelry shop that offers collateral loans in your area. For more information, visit sites like http://solsjewelryandloan.net/.Share