Retail Financing Jewelry With Unsecured Loans
Anyone who is buying jewelry will have two priorities in mind — cost and quality. Very often we don’t want to lose out on quality just to save a few dollars. Unless you have been saving money for a long time, you could resort to loans before you make that big jewelry purchase. Today, many jewelry stores offer financing and unsecured loans on site, and many banks also are currently offering lines of credit specifically geared towards diamond purchases. Here you will find out what kinds of unsecured loans will benefit you in the jewelry business.
The first kind of unsecured loan is a revolving account and and operates much like a credit card. You will probably get a card that has the store logo and information on it with your account number. You will be able to make minimum monthly payments against the balance of the cost of the purchase over a specified time period. Generally this is around 36 months or 3 years. You might have to make a minimum down payment on the jewelry and you can expect this to be around 10$ of the total cost of the purchase. Put as much down as you can upfront, this will decrease your overall balance from the get go. Here your monthly payments will be determined by the loan amount that is pending, and how much you put down. Good qualifiers for this kind of loan would be good credit history and limited cash flow. If you think your history may prevent you, you could get a hold of a co-signer.
Another kind of unsecured credit from a jewelry store is known as a 90 day account. In this option, you pay your balance in full through three equally monthly payments without any interest. You might be required to make a larger initial payment, around 20-30% for your first purchase in store. If you establish a good credit history with the store, you may be able to reduce the down payment for future purchases.
Another kind of unsecured loan occurs when a jewelry store partners with a bank to finance your jewelry. This is certainly one of the best options that are open to you, if your credit history can support it. With this type of unsecured loan, you are going to be getting bank rates and bank policies, instead of retail interest rates which are always much higher. This type of loan will be a better deal, probably no money down or annual fee, and no-prepayment penalties. Further, you can reuse this credit line as you pay it down and you will be able to choose a longer term (up to 5 years) of repayment.