A collateral loan is a loan secured against something you own, and it never affects your credit.
Collateral loans are becoming more popular in an era of slow economic rebound and little available credit. One of the reasons collateral loans are popular is there is less risk in obtaining a collateral loan than other types of loans. Collateral loans do not affect your credit score. Also, securing a collateral loan is often faster and easier than obtaining other types of loans.
To get a collateral loan, you provide the loan organization with an item of value, which will be used as collateral. Then the organization provides you with the loan funds. The loan amount is based on the value of the collateral. Once the loan is repaid, your item is returned. According to the National Pawnbrokers Association, pawn loans, a type of collateral loan, are repaid 80 percent of the time, meaning that 80 percent of the items used to secure loans are returned.
Suffolk Jewelers & Pawnbrokers offers collateral loans. We have professional, experienced staff to assess the value of your collateral and provide you with fair loan terms. Suffolk Jewelers & Pawnbrokers also has long history in the community, and has strong relationships with many regular customers. Come in and ask us about collateral loaning.