Pawn Shop loans are a great alternative to bank loans and payday loans. If you have a bad credit score or negative history with loans and need a little bit of cash, consider going to your local pawn shop and taking out a loan! Pawn Shops provide quick money, low-interest rates and ensure that your collateral is safe and secure. Continue reading to learn about the wonderful benefits of pawnshop loans.
No Credit Checks/ doesn’t impact credit:
A huge perk of getting a pawn shop loan rather than a bank loan is that pawn shops don’t care about your credit score or history. On top of this, pawnshop loans don’t negatively or positively affect your credit score. Pawnshop loans are an excellent option for those with no credit and need some extra cash or don’t have the greatest credit history. Your “credit” with a pawn shop loan is the item you put up for collateral, which means there’s no need for the shop to check out your credit history.
Pawnshop loans are quick and hassle-free; you’ll bring the item in to be evaluated and walk out within minutes with a handful of cash for the item you bring in. These loans typically only last for a month or 30 days max. Many people in a pinch for money tend to choose pawn shop loans over other options due to the fact that pawnshops are the quickest way to get paid. On top of this, banks and payday loans require piles of paperwork to be filled out, while pawn shops only need a few signatures.
Most pawn shops charge interest on a month-to-month basis. Meaning, if you pay the loan back in the first month, you only have to pay that month’s interest rate. If needed, you can choose to extend the lending period; however, this will cost you more interest.
Allowed to Get More Than One:
Loans from pawn shops are per item, so you can bring multiple items in at once to get multiple loans. Keep in mind that pawn shop loans are usually for smaller amounts of money, so it might be more beneficial to take in a few items if you require more than a few hundred dollars.
Collateral is Safe and Secure:
Pawn Shops securely monitor and store your items/collateral in a safe room that is monitored 24/7 until you pay back your loan and get the item back. It is not until the end of the agreed lending period that the pawnshop will release your item and attempt to sell it in their storefront. Until then, pawn shops will ensure the protection of your item. You also have the option to pawn the item to pay off the loan if necessary.