Taking out a loan against a diamond ring can be a great way to get fast money, but it's important you have all of the facts before you sign your ring away. Here are some questions you should ask a pawn diamond ring professional before seeking a loan for your diamond.
1. Are You Insured?
The business that offers your loan might become vulnerable to fire, vandalism, or theft, and that could result in the loss of your ring. Be sure you know whether or not the store has insurance, and also ask if your ring specifically is covered. There may be a clause in your loan contract that relieves the store of any liability, and this is important to know before you entrust your jewelry in the store's care. Remember that you can ask to see proof of insurance before taking out a loan.
2. Where Will The Ring Be Kept?
Storing the ring properly is essential for a number of reasons. You want to know that your ring is safe from potential theft, and you also want to be sure that it won't get misplaced in a jewelry case where someone might purchase it. While the jeweler may not be willing to show you where the jewelry is kept, he or she should be able to tell you how the pieces are stored during your loan period.
3. What Happens If Payment Is Late?
Depending on the terms of your loan, you may be required to make installment payments or pay the balance in full by a set date. Late payments can sometimes result in losing ownership of your jewelry. You may have every intention of paying on time, but life does get in the way sometimes. Knowing what's at stake can help you better prepare for how and when to make your loan payments.
4. Can I Pay Early?
Of course, if you can pay off your loan early, you'll be able to get your jewelry back that much more quickly. However, there may be additional fees associated with paying early. Find out what they are in advance so you can determine if waiting to pay is more cost-effective for you. Should you decide to wait, remember to set an alert in your calendar so that you are able to pay the balance in full on the first possible date.
If you have any other questions, write them down and bring them along when you are ready to take out the loan. The more you understand about your loan and how your diamond ring will be treated, the better prepared you will be to get it back at the end.