Surprising Items That Can Be Used as Loan Collateral
When you need to borrow money, there are many ways you can do so. One option is to use our convenient online platform at Pawngo. Our loan process is similar to a typical loan in the sense that we require a form of collateral to secure the loan. It might shock you to discover what surprising items in your house you can use as loan collateral.
What Is Collateral?
The idea of collateral is very familiar within the lending industry as all secured loans require it. Collateral is something that you offer in exchange for the loan. It must have monetary value, and it must be something you own outright. The reason is that if you default on your loan, the lender gets your collateral. It helps reduce the risk of lending money.
5 Items Around Your House You Can Use for Collateral
Some items are very commonly used to secure collateral loans. These include large ticket items, such as automobiles and real estate. However, we are not restricted to these items. We will take a wide variety of unusual items if they have adequate value.
1. Musical Instruments
If you are a musician, then you understand the expense of musical instruments and other musical equipment. If you have a top of the line instrument or piece of equipment, such as Fender, Gibson, or Martin, you could use that to secure your loan.
2. Apple Products
There are also the items that you spend quite a bit of money to buy; You could use Apple products, such as a MacBook Pro or iPhone, or other electronics like game consoles, to get a loan. These items have excellent value and can easily be resold if needed, which make them ideal items to use as collateral.
If you have some valuable jewelry from names that include Chanel, Tiffany & Co., Harry Winston, or Cartier, then this could help you get a diamond and jewelry collateral-backed loan. Let the jewelry help you out rather than sitting around collecting dust.
4. Luxury Watches
Luxury watches are another popular asset that can be used to secure a loan. High-end watches are often worth thousands of dollars, which make them excellent options to offer as collateral.
5. Designer Handbags
You may not think about using a handbag to get a loan, however, top designer brands such as Hermes, Louis Vuitton, Gucci, Versace, Prada, Chanel and many more, hold high amounts of value and can be used to attain a loan. The superior craftsmanship of designer handbags is sought after, so they make for great collateral due to their ability to be easily resold.
Have More Questions or Want to Get Started?
As you consider unusual things you can use to secure a loan, remember that the item should be in great condition, possessing resale value. If you think you have an item that will make great loan collateral click here to get started or want more information, contact Pawngo today.