Whether you're looking to buy that perfect engagement ring for the love of your life or simply want to surprise a loved one with a special piece of jewelry, a jewelry loan can make it easier than ever to afford something incredible. These days, many jewelers offer jewelry loans that allow you to make monthly payments on a piece of jewelry, rather than paying for it all at once. Before you apply for a jewelry loan, however, there are a few questions worth asking.
What Are the Qualification Requirements?
Start by finding out more about the loan qualification requirements. Many jewelers offer their financing through a third party institution, such as a bank, so they are required to abide by those qualifications. Specifically, you'll want to find out if there are strict credit or income requirements in place, especially if you have less-than-ideal credit or are currently between jobs.
What's the Interest Rate?
Once you're confident about qualifying for the loan, you'll want to look into interest rates. Ideally, you will be able to find a loan with a 0% interest rate, which will allow you to pay off the loan for exactly the sale price of the jewelry itself (plus any taxes or fees). However, if you have poor credit, you may not be able to get approved at 0%, which is where it's important to make sure you're getting a fair interest rate percentage.
Are There Pre-Payment Penalties?
When you take out a jewelry loan, you will be given a monthly payment that you are required to make in order to pay off your loan in the given term. In most cases, however, you can always pay a little extra each month to pay off your jewelry loan early. Just be sure to read the fine print and make sure there are no pre-payment penalties for doing this.
What's the Total Pay-Off Amount?
If you didn't get approved for 0% interest, it's always a good idea to calculate exactly how much you will have paid for the piece of jewelry by the time your loan is paid off. This should include any interest and fees, along with the original sale price of the jewelry. This will help you get a better idea as to whether or not the total cost is worth it.
By asking these questions before taking out a jewelry loan, you'll be able to make the right decision! Talk with a business such as C & L Gold & Diamond Brokers for more information.Share