When you need money in a hurry, but do not have a great credit score, it can be very difficult to get approval for a loan. Fortunately, if you have jewelry that is made from real gold, silver, or platinum, you can get a loan from a pawn shop relatively easily. The following guide walks you through a few things you should know about gold and silver buyers and getting a loan.
Know What Determines the Amount of Your Loan
It is important to realize that the pawn shop will not give you a loan for the full value of the jewelry that you are putting up for the pawn. They need to be able to make a profit if they are forced to sell the jewelry because you stopped making payments on the loan. The gold, silver, or platinum content, weight, and overall condition of the pieces you pawn will determine how much money you are able to get for the loan from the pawn shop. You can get an appraisal for the pieces for free so that you can determine if it is worth it to you to get the loan for the pawn or not.
Know When Payments Are Due on the Loan
When you get a loan from a pawn shop, you often make payments every week or every few weeks. This is because the shop understands that repaying the loan in a lump sum will be very difficult for you to do. A payment schedule will be established when you sign the paperwork for the loan.
Know What the Penalties Are for Late Payments
Be sure to discuss what will happen if any payments are late. There are some shops that have a grace period of a few days, just in case anything happens and you cannot make your payments. Other shops state in their agreement that late payments will not be accepted and you automatically forfeit any items in pawn if you do not make the payments on time.
Know How to Get Your Items Out of Pawn
Be sure that you talk to the pawn dealer about what you need to do when it is time to get the item out of pawn. Some dealers require you to have your pawn slip with you when you come to get the item and some just require you to have some form of identification to get the item out of pawn.
Getting a loan from a pawn shop takes just a matter of minutes and can really help you when you are in a pinch. The interest charges on a loan from a pawn shop will be slightly higher than the charges you would pay at other lenders, but that is simply because they do not require you to have perfect credit to get the loan.