Two Tips To Help You Save Money When Getting A Jewelry Loan

Posted on: 22 July 2015

People take out jewelry loans for many different reasons.  Whether it's to purchase an engagement ring, Valentine's Day gift, or simply to tell your beloved that you care, a jewelry loan makes it easy for you to purchase beautiful pieces of jewelry when you don't have the cash to buy a particular piece outright.  However, when you're getting the loan, there are simple ways that you can save money so that you get the best value.  Use these tips to learn more about what you can do to help make your jewelry loan more affordable. 

Don't Rest During The Payment-Free Period

One of the most important ways for you to save money when you get a jewelry loan is to act as if payments are due right away.  Many jewelry loan programs allow for a period during which you do not have to make payments.  You may think this is a time when you can keep your money in your own pocket, but this may not be a wise move.

Even if there are no stated payments due, interest could still be accruing on the loan.  For example, if you take out a jewelry loan for $2000 dollars with an interest rate of 15 percent, you may be told that you have an initial period of six months with no payments.  However, during that six month period, you will add on an additional $150 to your balance in interest.

Even if you're only able to afford the interest, start those payments as soon as possible so you can keep your principal balance level.

Know When To Buy

Another technique you can use to save money on your jewelry loan is to know when to buy.  There are certain times of the year when your jewelry buying power will be at its peak.  If you plan your purchase for these times, you may be able to get a deeply discounted jewelry loan.

March, late May, July, and August stand out as great times to purchase jewelry.  The reason why these months are ideal is because they are far enough away from pivotal holidays to create more supply than demand.  This may cause jewelers to discount their pieces to bring in the business, and could be the key that helps you get a jewelry loan that is much less expensive than what you would have to pay at other times of the year.

Getting an affordable jewelry loan doesn't have to be difficult if you know what to do.  The next time you need to take out a loan to buy jewelry (from an outlet such as Sol's Jewelry & Loan), use these tips so you can get the best deal possible.