When the urgent need for fast cash hits, there are a few solid options to choose from, and sometimes getting a pawn loan to borrow money is the best one. There are some significant benefits to using pawn loans, but there are also some drawbacks. We’re going to talk about the pros and cons of pawn loans, as well as some potential alternatives that might fit your needs better.
When fast cash is needed, many types of loans just don’t apply or take too long to be approved and get you the money you need now. A pawn loan is one of the fastest ways to get cash in your hands for the emergencies in your life, in exchange for putting personal property up as collateral.
The amount of your loan is based on the value of the item or items that you bring in as collateral. To get a pawn loan you simply bring the property to a licensed and registered pawn broker, and they will make you a loan offer that you can either accept or reject. When you have the funds to repay, you can do so and get your property back.
One of the biggest benefits of getting a pawn loan is that there is no application or credit check. There are many other types of “no credit check” loans that you can get, but there aren’t any other options that don’t need an application of any type. This means you can’t be denied based on bad credit, and not paying the loan off won’t hurt your credit.
The interest rates on pawn loans are generally lower than other short-term loan options like payday loans or title loans. If you have bad credit, this makes them a cheaper loan option than other types of personal loans.
Pawn loans are incredibly fast. You simply walk into the pawn broker with your property, speak to someone, and get your loan offer. If you accept the offer, you can leave the store with cash in your hand in just minutes. This makes a pawn loan one of the fastest and easiest ways to get money when you need it.
Even with lower interest rates than title or payday loans, the interest rates aren’t cheap. The main point of keeping collateral for the loan is that it lowers the risk of lending to the lender if you don’t pay it back. In the case of a pawn loan that means that the pawn broker can then sell your property to recoup the loan funds. On top of that, the amounts available for pawn loans are generally lower than with other loan types.
If you don’t want to deal with these drawbacks, or simply don’t want to put up your personal property to secure the loan, check out some of these other options.
Needing cash fast is no joke, and being able to get that cash can mean all the difference in the world for some people. For more information on getting a pawn loan to borrow money, reach out and speak to a lending professional at Lending Bear.