Pros and Cons of a Pawn Shop Loan

During those times when you’re in need of some fast cash, you may want to consider getting a pawn shop loan from a good pawn shop. Of course, as with any type of loan, you are going to have your pros and cons. In this article, we are going to go over those advantages and disadvantages of getting a pawn shop loan …

Pros

Easy – One of the biggest advantages of getting a loan at the local pawn shop would be the fact that it is easy to get. All you have to do is take something in that you could use for collateral and have the pawnbroker look it over. The pawnbroker will inspect the item closely and give you a price they feel the item is worth.

If you choose to pawn the item, instead of selling it, then the price is going to be lower, but the good thing is you would be able to get the item back as long as you pay the money back on time.

From there, the pawn bropawnker will give you a receipt – keep this paper, because it has the terms of the loan on it, along with some other useful information such as the item description, your name and address.

No Credit Check – Another major advantage of getting this type of loan at the pawn shop would be the fact that they are never going to run a credit check on you. This is the type of loan you can get, without being criticized for your past mistakes.

The pawnbroker isn’t going to judge you, it is the item they will be judging. The loan you get is going to be secured due to the collateral that you provided. The lender isn’t worried about you defaulting on the loan. If you do default, then they will be able to keep the collateral and sell it.

Get Cash Right Away – Another advantage of going to the pawn shop to get a loan is that you can get the cash right away. You won’t have to wait for a bank to approve you or for them to process your loan documents. As long as they want your item and the two of you are able to reach an agreement, the pawn shop will give you the money right away, so you won’t walk out empty handed.

Cons

Short Loan Term – One of the biggest disadvantages of getting a loan at the pawn shop is the fact that the loan term has a tendency to be very short. In many cases, you will have 30 days to pay the money back. Many pawn shops will give you an extension, as long as you pay the interest on the local. While you may be able to extend the loan, this can be an expensive route to take.

Conclusion

In all actuality, when you really need fast cash, the pros outweigh the cons for getting a loan at a pawn shop. Yes, the loan is short term, but as long as you are able to pay that money back within that time frame, you will get the item back. If you have some jewelry to pawn, we would like to recommend Cash4jewelrynow.