If you are in need of a loan, you may be thinking that you cannot get one due to your credit to income ratio or other factors. Pawn shops offer a viable way for people from all walks of life to secure loans. The following information will help you to better understand the benefits of using a pawn shop as a preferred short-term lender.
If you have an unexpected emergency and need a loan from a traditional lender, you might have to wait on the lender to make a decision. Opting for a loan from a pawn shop eliminates extended wait times. You can expect to get a loan offer the same day, and if you accept it, you will likely get the money the same day.
No Credit Risk
Pawn shops do not perform background and credit checks on borrowers. This makes them ideal for almost anyone including people who are unemployed. If the loan is not paid back, it will not be reported to credit bureaus. This is because pawn shop loans are secured loans. The items you pawn are the collateral, and the pawn shop will use your government issued ID to identify you rather than performing a background check to gather information about you.
Offer Amounts Unrestricted
Pawn shop owners get to make the decision on what they will offer consumers for items. If you have a particularly interesting item, they may want to negotiate with you, and make an offer to buy the item. For example, an offer might be made on a collectible item if the owner of the pawn shop is a collector. You do not have to sell your items, but you will likely be offered more for selling an item than pawning it. This is because a pawn is a temporary arrangement that involves you paying interest on the loan. A sale is a permanent arrangement where you agree to transfer ownership to the pawn shop. If you need more money than what is offered to you, it is wise to consider pawning several items.
Pawn shop representatives are the best resource to use to determine which goods they will pay top dollar for. Electronics, precious jewels, precious metals, and antiques are examples of items that you may be able to get decent loan offers for. Ensure that you take the time to clean items you plan to pawn to make them aesthetically appealing. For example, the presence of dust on electronics may make them appear more dated, and dirt around gemstones in a ring could make the jewelry not appear as valuable.
Keep in mind that pawn shops may not extend loans on electronics that are not in full working order or outdated. This is because if you forfeit the pawn, the item will need to be resold so that the pawn shop can recoup the money they loaned you. If you're looking for a pawn shop in your area, visit Desert Jewelry Mart & Coins.