Are you in need of emergency cash? Pawnshop loans are the best alternative for quick and more accessible loans. It allows you to pay up the loan in your time frame. You don’t have to wait for days before getting a loan in banks or other microfinance institutions. With pawnshops, the loan approval is instant.
Advantages of Pawn Shop Loans
Collateral Items are Securely Stored
Pawnshops store collateral items in a safer place to ensure they maintain their value throughout the loan period. This means that your item will be the same as you left it. Most of these items are expensive and can be stolen, and thus pawn shops management ensures they are safe.
You Can Acquire Multiple Loans
Pawnshops can give you as many loans as you want, provided you give out collateral. Other lending institutions cannot give you more loans before completing the previous ones. In case of an emergency, a pawn shop can get you sorted at once regardless of how many loans you are servicing.
They Don’t Affect Your Credit Score
Pawnshops do not check your credit score before lending you, and thus their loans aren’t determined by poor score. Other lending entities always check your credit score to determine how much you are worth. Persons will low credit scores can fail to secure loans.
Quick Loan Process
Most people prefer pawnshop loans because of the quick loan process. Loans from banks may take weeks before processing, and there’s nothing you can do to rush the process. Once you reach an agreement with the pawnshop, they hand you over the cash at that moment. This means you get your loan within an hour after requesting. If in need of an easier, quicker, and higher amount of cash, consider Monte de Piedad.
You Don’t Require Guarantors
Looking for a guarantor when taking a loan can be frustrating since most people do not trust others. Some may feel it’s a waste of time to take hours in banks waiting to sign all papers. With pawnshop loans, you don’t need to inform anyone of your intentions to take loans. You’ll carry your collateral, and that’s all.
In Case of Loan Default, Your Dignity Will Still Remain
If you default on a bank loan, this institution will go for your guarantors and your properties. It is a big shame, people watching all you have been taken away. Not to mention how your relationship with your guarantors will be affected. However, if you fail on a pawnshop loan, the lender will take your collateral and sell to repay their money without drama and seal the deal.
No Paperwork and Interrogations
Banks and microfinance institutions have a lot of protocol orders to follow before giving out loans. Some institutions require someone to have savings in that bank to acquire a loan. The loan application process can take days or weeks before approval. You can’t secure a loan in such institutions without interrogations about what you do for a living, the purpose of money, and so forth. In pawnshops, you only need to sign a loan agreement, and you are done.
Pawn Shop Loans Incur Interest per Borrowed Period
In most cases, pawnshops charge interest monthly. This means that if you return the money within the first month, you’ll only pay one month’s interest. If you stay with the loan for a long time, the more money you’ll pay.
Life is full of unexpected events which may force you to take an emergency loan. Pawnshops are the best alternative since they are reliable, fast, and do not check your credit score. However, look for a reliable pawn broker to avoid scammers and lose your precious item.