22191 Powerline Road #12b, Boca Raton, FL 33433

Common Uses for Collateral Loans – And Benefits

Common Uses for Collateral Loans – And Benefits

Collateral Loans Boca

Collateral loans are a fairly easy concept to understand: a collateral loan is a type of loan secured by some asset that you already own.

Traditionally, collateral loans are issued on real estate property, which is often referred to as a “home equity line of credit.” In many areas, you can also take out a collateral loan on a vehicle with equity and proper insurance, appraised jewelry or other verifiable assessed collateral.

Collateral Loans Boca Raton, collateral loan boca, raymond lee jewelers boca

Collateral is used to secure a loan in situations where the lender needs some assurance that they won’t lose their investment. If you are unable to pay back the loan, the lender will have collateral to sell to recuperate their investment.

A majority of the time, lenders will under-value your collateral, often by as much as 50%. If you’re looking to take out a $1000 loan, for example, and you put up $2000 in jewelry to secure your debt, in the event that the lender needs to sell your asset to earn back their investment, they’ll take the full amount that the jewelry was appraised at and/or sold for. This, essentially, protects the investor in future business decisions and yields them a higher return.

Collateral loans can be used for anything that you’d use a traditional, unsecured loan for, and more.

Many individuals use collateral loans as a means to put a down payment on a piece of real estate. Collateral loans can also be used as funding for renovating your home to a more luxurious standard, or fixing appliances within the household.

Why not use a collateral loan to purchase the engagement ring of your woman’s dreams? Or fund a wedding that your guests will never forget? Perhaps a golden anniversary gift? Or a “just because” diamond for your wife? We’ve even issued collateral loans so our customers can purchase their dream puppy.

The benefits of collateral loans are that, if paid back within the boundaries of the loan, the interest rates are often much less than an unsecured loan because of the collateral backing the loan. These types of loans also work toward credit building—a great option for young adults looking to make a mark for themselves.

Generally, a default on a collateral loan won’t affect your credit as negatively as unsecured debt because your debt was secured from the beginning. Collateral loans are a great option for individuals who would rather not worry about the long-term repercussions of potentially irresponsible financial decisions.

Raymond Lee Jewelers offers collateral loans on your most prized jewelry and valuables, including but not limited to: fair appraisals on diamonds, gold, antique jewelry, watches, etc. If you’re located in Florida, or specifically the Boca Raton area, Raymond Lee Jewelers is a trusted name in collateral loans.


Comments are closed.

Translate »
Wishlist 0
Continue Shopping
Link alternatif slot Slot Online situs Slot88 terpercaya slot rtp live bonus dan promosi akun Slot88 slot jackpot terbesar