When you need money for an unexpected expense, your options for obtaining a loan include a title loan, a personal loan, and a loan through your local pawn shop.
With the right collateral, a pawn shop can provide a good loan. Here are four reasons to consider a pawn shop loan over other alternatives.
1. Faster Results
The way a pawn shop loan works is simple: you bring an item of value to your pawn shop broker, and then your item is assessed for its value. You then show proof of your age and identity, and you receive a cash loan against the item based on its worth. You'll receive a contract with your repayment plan and loan time frame, and when you pay your loan off, you'll receive your item back.
If you don't pay your loan off in time, or if you fail to make payments without making extension arrangements with the pawn shop broker, then your pawned item will be placed for sale - it is no longer yours.
Pawn shop loans don't involve credit checks, and you don't need a co-signer. As long as your collateral is of value, you can obtain a pawn shop loan easily. A pawn shop is an ideal loan center if you are new to loans, have poor or no credit, or need cash immediately. If you're approved, you'll walk out with cash in hand the same day you apply for your pawn shop loan.
2. Easy Repayment
The average pawn shop loan is $150, but your loan amount will vary depending on your collateral's value and the amount of money you need. Pawn shop brokers offer repayment plans with interest, so they make money on the loan. You pay your loan off in monthly installments until it's paid in full. Or, you can pay the entire amount owed prior to the due date without penalty if your contract allows.
Shorter loan terms may be only a month, but some loans feature lengthier repayment plans. Payments are easy. Simply visit your pawnbroker and make payments on time every month. Or if you wish to settle your loan at any time without payment, relinquish the item you pawned to settle your loan agreement. You can also receive an extension on your loan with the approval of your pawnbroker.
3. Flexible Collateral Acceptance
With a title loan, you typically give your car for collateral, and your vehicle must reach certain criteria for acceptance. With a personal loan, your credit history, income, tax returns, and other factors come into play and affect your loan results.
With a pawn shop loan, your ability to secure funds is limited only by the collateral you bring in. The more valuable your belongings - pawn multiple valuables at once for a larger loan - the more cash money you receive upfront. Items of value include:
- Cell phones
Since a loan must be paid back with interest, borrow only what you need for an emergency. Never pawn anything you won't be willing to lose in the event you cannot pay back your loan.
4. Return Service
As long as you don't have any outstanding balances with your pawn shop and have items of value worth pawning, return to your pawn broker for a quick loan as often as you want. Some people even pawn the same valuable twice. As long as payments are made on time, most pawnbrokers are happy to extend loans on valuable items they've seen before.
A pawn shop loan is an ideal way to get funds you need without hassle or ample paperwork. Discuss your loan options with our friendly and knowledgeable staff. Bring your valuables to 2 J's Pawn & Gun, and we'll help you get cash in your pocket today.