Whether you face an unexpected emergency or are amidst or at the tail end of a rough patch, you may determine that your only option to stay afloat is a cash loan. A cash loan differs from a traditional loan in that you can typically obtain one fairly quickly and without going through the standard credit-check-and-wait process. In fact, so long as you have something of value to use as collateral, you can likely receive cash on-the-spot and without undergoing much, if any, scrutiny. If you are interested in getting a cash loan, it is important to understand what a cash loan is and what the application process entails.
What Is a Cash Loan?
A cash loan — otherwise known as a “pawn shop loan” — offers people a quick and easy way to borrow money. Cash loans are easy to obtain, as they do not involve credit checks or much scrutiny into individuals’ employment or financial backgrounds. Rather, lenders make determinations based on the items borrowers are willing to put up as collateral. Lenders use an item’s value to also decide the loan amount.
Is a Cash Loan the Same As Pawning Your Items?
You may be interested in a cash loan so that you can avoid pawning your items … But, isn’t that what a cash loan essentially is — receiving money in exchange for selling an item? Not necessarily.
Though pawn shops are the most common lenders of quick and easy cash loans, you are not selling your items for cash. Rather, you are putting an item up as collateral to reassure the lender that you will pay back the amount you borrowed. Only if you fail to meet the lender’s repayment terms will you lose your ownership rights over the item.
What Do You Need To Know About Getting a Cash Loan?
Before you take out a cash loan, it is important that you understand how they work. As with any loan — traditional or not — cash loans come with repayment terms and, yes, interest. Because cash loan amounts are typically small, the terms are relatively short at between one and four months. You must repay the loan amount in that time to get your item back. The best lenders are willing to extend your terms if you cannot repay the amount in full in the specified time.
Cash loans also come with higher-than-average interest rates. These rates protect lenders against the possibility of default.
Fortunately for our customers, the state of Virginia regulates how much brokers may charge for pawn shop loans. In VA, the interest rate on cash loans cannot exceed between 5% an 10% per month, depending on the amount in question.
How Do You Get Quick and Easy Cash Loans?
Getting a cash loan through a broker like Loudoun Exchange & Jewelry is easy. Bring the item you wish to use as collateral into our shop and one of our on-site appraisers will determine its resale value. We will then let you know how much we can lend you and, if you agree to the amount, establish the loan parameters. If you agree to the terms, we will offer cash on the spot. To learn more about our simple and streamlined cash lending process, contact us today.