Jewelry can be quite expensive; we know that. We also know that if you want to propose to your loved one, get someone a valuable gift, or if you’re simply tight on money, going for jewelry loans has crossed your mind. Well, we’re here to deliver.
Keep on reading to learn more about what you should expect when applying for a jewelry loan and what you should be on the lookout for!
What Are Jewelry Loans?
Jewelry loans can be one of two things: a borrowed amount of money to get jewelry or using jewelry as an asset to borrow money.
The first kind of jewelry loans is any amount of money you borrow from a lender to get gold, diamond, gemstones, or any jewelry in general. Some lenders would even consider luxury watches as jewelry.
This kind of loan is the one you would usually go for if you were planning to propose to your partner and you want to get the best diamond ring there is. If you simply want jewelry for your own pleasure but don’t want to pay the full amount of money upfront, you can apply for a jewelry loan and pay the money as monthly installments instead.
The other kind of jewelry loan is when you’re applying for a secured loan in minutes and using your valuable jewelry as a financial asset or collateral. The lender can take it away if you don’t pay back the money you borrowed.
Types of Loans for Jewelry
Whether you are looking to buy some jewelry or use your jewelry as an asset, you need to know the different loan types in Australia and what you should expect from each. So, keep on reading.
First of all, credit cards are the way to go if you are 100% sure you’ll be able to pay back the money on time. With a credit card, you can just pay for the jewelry you want and then pay back with no interest-rate whatsoever.
However, this might be a little risky because if you don’t pay back in time, you can end up facing some really high-interest rates, and you will have to pay a lot more than you expect.
This might be the way to go if you’re planning to propose to your partner for a special occasion that can’t wait, and you are sure you will be able to gather the money and pay within the specified time period.
Secured loans are the kind of loans that require some sort of valuable asset that is worth more than or equal to the agriculture loan Australia itself. The lender can take away the asset if you don’t commit to your instalments.
Now, if you’re using your jewelry as an asset, you will get the money you need, and after you’re done paying back all the instalments, you should get your jewelry back with no issues. However, this type of loans is also quite risky because you might lose your valuable item if you’re unable to pay back.
On the other hand, if you’re applying for a secured loan in order to get money to buy jewelry, you will still have to provide another financial asset, and it can be the jewelry you’re buying itself. You can also offer other financial assets like real estate, cars, or any valuable item worth more than the loan money you’re applying for.
Secured loans are the way to go if you have a bad credit score because not all lenders would approve your unsecured bad credit jet ski loan application in that case. Additionally, secure loans usually have lower interest rates than other kinds of loans, making them appealing to some people.
Unsecured camper trailer loans Australia are precisely what you would expect. You will get the amount of money you need without having to provide an asset in return. However, this kind can be a little harder to get because it usually has higher interest rates and lower borrowing limits, which might not work for everyone, especially if you’re looking to get expensive jewelry or watches.
Short-term loans have to be paid back in a short amount of time, usually ranging from 6 to 12 months. They might require that you provide a financial asset, which can be jewelry, if money is what you’re seeking, or you can get a short-term lifestyle property purchasing loan to buy jewelry.
However, short-term bicycle loans in Australia have restrictive borrowing limits, and the money might not be enough to cover the price of the jewelry you’re looking to get.
Jewelry Loans Fees and Rates
Before settling for the first financial provider you see, you need to know the fees and rates you should expect. So, here’s everything you might pay along the way.
Comparison Rate and Interest Rate
When comparing different jewelry loan providers, you need to look at the comparison rates, not the interest rates. The comparison rates include interest rates, service fees, and any other monthly or annual payments.
To give you a better idea of what to expect, most jewelry comparison rates range from 6 to 9%, while interest rates are usually around 6%. Keep in mind that you’re going to be paying the comparison rate, so it’s the more important number of the two.
You might also face other fees that you have to pay along the way, like service fees, monthly fees, establishment fees, and application fees.
Before signing a contract and getting your loan, make sure you read all the lender’s terms and conditions and double-check that there are no hidden payments. We even strongly recommend getting a financial expert to look at the terms for you; it’s better to be safe than sorry.
Jewellery Loans Limitations and Eligibility
You can’t expect that you’ll talk to the first financial provider you see, and they will agree to all your terms and expectations. There are some limitations when applying for loans, and you must pass the eligibility criteria for your application to be approved.
The borrowing limit is heavily dependent on the type of boat loans Sydney you’re applying for and the lender conditions. Some lenders can provide you with loans as low as $50 and others as high as $5 million, but as you can guess, large loans have a lot of requirements that aren’t exactly easy to meet.
However, most lenders have a borrowing limit ranging from $2,000 to $200,000, which should be more than enough for buying a piece of jewelry.
The duration you need to pay back the loan depends heavily on the amount of money you’re borrowing. Generally, smaller amounts of laptop long term loan money can count as short-term loans, which you will need to pay back within a few months, while larger loans can have terms that can be as long as 6 years, or even longer!
There are no one-size-fits-all eligibility criteria; they change according to each lender. Some providers will require that you have a good credit score, while others simply don’t look at your credit. Either way, having good credit can really boost your chances of getting your application accepted.
If we have to make an educated guess, we would say that having to be an Australian citizen (or having permanent residency), being 18 years or older, and having a reliable income are the most common requirements across the board.
Now that you know all about jewelry loans, you can go ahead and fill out your laser loans application with confidence that it’ll get approved. Also, remember to look at the comparison rates, not the interest rates, and double-check the dental loans conditions to make sure there aren’t any extra fees that you don’t know about.