Benefits of a Pawn Loan
We have all been caught short of cash from time to time, but where do you turn to get cash quickly? In times of emergency, you may need cash quickly and getting a loan may not be an option in some cases. A pawn shop loan however is an option available to most.
Is a pawn shop loan right for you? There are many benefits offered by pawn shop loans over other types of loans, which include:
Pawn shop loans require no guarantees or need to secure the loan against your home, they are much more straightforward to get. All you need is to provide collateral for the loan that is equal to the value, whether that is jewelry, designer goods, musical instruments or something else. You bring the item/s to the pawn shop to be appraised and will receive a loan offer. If you agree to the loan, the collateral item will be securely stored by the pawn shop for the length of the loan and returned when you repay the loan in full.
Pawn shop loans are one of the quickest loans available and you can walk out with a loan straight away. There is minimal paperwork and the key part is appraising the value of your collateral item as this will determine how much you can borrow. Our appraiser will provide you with an offer and if you accept, you can have the cash straight away in exchange for leaving the collateral item.
Not many loans can provide the flexibility that a pawn shop loan does. These short-term loans are designed to be flexible and are based on the value of your collateral item. If you can repay your loan early you can get your collateral item back sooner with no additional charges. Adversely if you are unable to repay the loan, you may be able to extend the loan term for a further period so that you don’t lose your item.
No credit checks required
A pawn shop loan doesn’t include any credit checks and won’t check your employment income. Our loans are based only on the item you provide as collateral and its value, nothing else. So it doesn’t matter if you have bad credit, a poor credit record or are unemployed. In fact, most people in these circumstances find that a pawn shop loan is the best option available to them.
Will it impact my credit rating
Pawn shops only use the collateral item as their security, therefore if the loan is not repaid in full the pawn shop can take ownership of the item and sell it to recoup their losses. Unlike other lenders, they won’t use collection agents or have it listed on your credit report.
Lowest cost alternative
When you compare alternative loan options for those with a poor credit rating or where there are no credit checks (such as payday loans or title loans), a pawn shop loan comes out as one of the cheaper options. This is largely due to the reduced risk involved as you are providing collateral for the loan so the fees and interest are lower.
If you need a loan you should look at the options available to you and weigh them up to decide what is the better solution for your needs and what you can realistically afford.