Pawn shops are a common sight in nearly every American town. Not only are they a great place to get quality goods at reasonable prices, but they are also a tried and trusted resource for quick cash loans.
Many people rely on pawnshops for instant cash. Getting a loan from a bank takes time and is a detailed process. A loan from your local pawn shop, on the other hand, gives you instant money without much formality.
Pawning money is a great option for emergencies, as you don’t really have to go through the detailed processes laid out by the bank. Usually, one cannot get a loan of more than $100,000 from pawn shops. However, most emergencies don’t cost that much, making pawn loans a preferred option for emergencies.
Some of the benefits of getting a loan from your local pawn shop are as follows:
● Instant Money In Your Hand
The fact that one gets the much-needed emergency cash easily and instantly while getting a loan from a pawn shop is one of the biggest reasons as to why people go for this option. Unlike bank loans, the approvals and process of a pawn loan do not take up weeks. You only need to have collateral to carry out the loan successfully and fill out some paperwork. The pawnshop is then going to give you a receipt that has the terms of the loan on it.
● No Credit And Background Checks
The no-credit-check policy of loans from a pawnshop is another reason why they are a preferred way of getting money over microloans from the bank. Irrespective of your credit score, you are bound to get help from your pawnbroker. The collateral you give is sufficient security for the loan. The lender is not concerned with whether you default on the loan or not. If you do, they simply keep your collateral and sell it.
● No Impact On Your Credit Score
Pawnshops do not usually deal with credit checks. Hence, getting a loan from them bears no effect on your credit score or rating. One of the demerits of getting a loan from a bank or a microfinance company is that your late payments reflect your credit performance. In case of future needs for emergency cash, getting a loan from a bank will then become difficult. This is not the case with pawnshops. At a pawn shop, you can get multiple loans. You even have the option of getting different loans each day of the week. This is because it’s all based on collateral. If you have reasonable collateral, you will get the loan.
In addition to the above-mentioned benefits of getting a loan from pawnshops, you also enjoy lower interest rates in comparison to the ones that banks offer. Most pawnshops charge interest monthly. This means that you can pay all the money back within the first month and get that month’s interest only.
If you are in need of some emergency cash and do not want to go through the hassle of getting a loan from the bank, visit Loudoun Exchange & Jewelry today! We buy, sell, and trade almost any item of value, including fine jewelry. Bring in your collateral and walk out with cash. Get in touch with us at 703-777-2520.