If you need a little or a lot of extra cash to help you get through the expensive holiday season, then you are not alone. Instead of maxing out credit cards that charge you so much interest that you may still be paying off last year's holiday purchases, it can be a much better idea to obtain a collateral loan from a local pawn or jewelry dealer, such as Sol's Jewelry & Loan. This may sound like a hassle at first, but it will help you stop racking up credit card debt without sacrificing fun this holiday season. Follow these tips for choosing what items to use as collateral for your loan, preparing them, and completing the loan process successfully.
1. Browse Your Complete Jewelry Collection and Find the Right Pieces
If you own a lot of jewelry, then now is the time to decide what you love and what you barely wear. Pawn dealers always need new jewelry, because it often sells well and quickly. Jewelry often also shows few signs of wear when maintained properly. If it does show signs of wear, most jewelry pieces can be easily repaired and polished to look like new again.
Even when you plan to pay off your loan in full, it is important to avoid loaning family heirlooms that will cause a hardship for you and your family if you were to default on the loan. Once you have heirlooms set aside, also set aside costume jewelry that has little value. Pawn dealers typically won't even take it, so if you take it to the shop, you will just be wasting your time.
If you have a couple of diamond rings and want to keep one for the holidays and use one as loan collateral, then pawn the one with the largest diamond. Pawn dealers will give you more cash for a ring with one large diamond than a ring that has several small diamonds, even if the karat weight of each is the same.
Once you have only your quality gold, platinum, rose gold, and diamond pieces in front of you, set aside anything you absolutely won't part with no matter how much cash is offered. Gather the rest up and clean it to the best your ability. Start by giving each item a little scrub with a mild liquid wash that won't leave any residue behind (dish detergent and baby shampoo are both good options), then soak them in a jewelry cleaning kit that you can purchase for just a few dollars. Place them in their original boxes, if you still have them, and place them in a small cloth pouch or bag to transport them to the shop.
If you have appraisal certificates and/or original sales receipts, bring them along, as this can help the pawn dealer determine what your jewelry is made of and the approximate retail value when purchased. However, don't expect to be offered a loan for the full retail value of all of your items. Obviously, the pawn broker is operating a business and will rely on the cash earned from selling your jewelry at a low price if you were to default on your loan.
2. Move Onto Your Electronics and Tools
Once you are finished choosing your jewelry to pawn or if you don't have any jewelry, it is time to make a list of all electronic items and power tools that you have. Pawn dealers prefer smaller items, because they take up less valuable space in the shop. Keep that in mind before you decide to lug a large television, band saw, or desktop computer to the shop. Call the shop first and ask if they are interested in looking at these larger items before you inconvenience yourself bringing them in.
Electronic items that pawn dealers tend to love include laptop computers, tablet computers, pricey smartphones, and GPS units. Power tools that they love are small, yet pricey items, including name-brand hand drills and compact power saws.
Once you collect your small electronic items and/or tools, make sure they still work, if you have not used them in a while. Then, clean them up until they look as like-new as possible. Scrub down power tools and clean up electronics with soft microfiber cloths. Collect all accessories that came with these items, such as cords, chargers, and tool bits, to get the most money you can for them.
3. Call the Shop Before You Bring Your Items
While many pawn dealers post their hours online today, make sure to call ahead, because they may only offer loans during specific hours of the day. The shop owner and workers will also appreciate being given notice to expect you and your items. When you make your call, it is also a good time to ask if they are interested in any other items you may be considering taking in, such as electronic kitchen items or those larger electronics. If the shop is in need of them, then clean them up and bring them in too.
Once they give you the okay to bring in your items, make sure you also bring identification, such as your driver's license. Once you arrive, don't be afraid to make a couple of trips when bringing your items into the shop, because you don't want to accidentally damage anything that could have helped you get a large loan. Feel free to haggle a little with the staff on your loan amount, but most dealers stick to their original quote and will only budge by a few dollars in the end, if at all.
Don't leave the shop until you understand your loan terms and payment due dates. This is important information to help you avoid losing your items due to defaulting on your loan. Once you leave, you can then begin shopping for the holidays with your cash loan instead of those high-interest credit cards.
If you walk into a pawn shop with boxes of old, dirty items, you will just end up wasting your time and the shop's. Find items in your home that you will get top dollar for and prepare them to look as like-new as possible. You can then look forward to obtaining a collateral loan that can help you shop with cash this holiday season instead of maxing out those credit cards with payments that you are already behind on.
Share4 December 2015
When I was looking for ways to diversify my financial portfolio, a friend of mine suggested something interesting. He said that it might be smart to invest in high-end jewelry, so I started looking into it. I found out that many of my friends and family members had done just that--invest in designer pieces that appreciated in value over time. Unfortunately, I wasn't sure what to look for. I had to spend a lot of time learning the ropes before I purchased my first piece. Check out this blog to find out more about high-end jewelry so that you know what to buy.
