Luxury Assets as Loan Collateral – Why Banks Aren’t Interested

For anyone in the pinch for a quick cash infusion, a luxury item can come in handy. Just don’t try to use your item (diamond ring, expensive jewelry, etc.) at your local bank. They’ll accept vehicles, property, investments, future payments and even insurance policies – but when it comes to jewelry, you can pretty much forget about it.

Most banks simply will not entertain the idea of offering, say, a $4,000 diamond ring to back up a $4,000 loan. So what are the biggest stumbling blocks for banks not going along with this type of collateral loan?

Banks use credit scores, yearly income and other factors when determining loan viability. If your credit score is 740, you make $100,000 per year and have a stable job history, you can basically write your own check. But if you’ve had credit issues, a bank will probably deem you “too risky” for a significant amount.

Banks are resistant to change. You know the banker stereotype – all business-like, sort of nerdy, kind of uptight? Well, that image extends to bank policies. Luxury items, just like a less-than-stellar credit history, is too much of a reach. Occasional stories surface that indicate change may be coming soon (designer handbags for a loan), but for now…the conservative banker strikes again!

Sometimes, it’s hard to determine a piece of jewelry’s value. We can’t really blame the bankers here. If a certificate of authenticity isn’t available, the bank can’t just estimate the value. Official documentation matters.

So while it’s very frustrating that traditional banks will lend money on a mere signature and not a pricy pair of diamond earrings, there’s not much you can do about their policies.

Diamond Banc can give you a loan using luxury assets (like fine jewelry) as collateral. There is no red tape, credit checks, employment verification, or any other hurdles. Simply fill out our simple online form, answer a few questions and you’re on your way! Because we eliminate the red tape, the processing time is much faster than traditional loans. Ours usually take a few days, while bank loans can be bogged down in approval process for weeks or even months!

If you’re frustrated with your local bank’s refusal to accept your luxury items as loan collateral, Diamond Banc is your solution. We’re here to help. Simply fill out our contact form, call 1-855-DIA-BANC to speak with one of our luxury item loan collateral experts or visit one of our partners today.