Personal loans: Why people are choosing a pawn shop loan

As financial pressures are increasing for many people, a lot of us are looking for ways to raise some cash to help pay the bills or fund those unexpected costs that we can’t afford. So where do you go for a personal loan? Many people are turning to their local pawn shops for loans but why are these types of loans so popular?

There are many reasons why people are choosing a pawn shop loan over other loans, these are:

  • Accessible to most

Pawn shops won’t check your credit rating as they don’t mind what your credit score is or your income. Therefore, their loans are more accessible to more people as you only need to provide a loan collateral item/s in order to get a loan and nothing else. The collateral item has to be valued greater than the required loan amount.

  • Simple option

Pawn shop loans are a simple personal loan option. They are simple because they don’t require recipients to complete an application and don’t request a lot of information that needs checking such as your credit rating and income.

  • Quick loans

Speed is often important and pawn shop loans offer this as there is no complicated paperwork or checks to hold things up. To get a loan you just need to visit one of the pawn shops with your collateral loan item so it can be appraised, and a loan offer will be given. You can walk away with the cash the same day.

  • Competitive loans

Pawn shops tend to offer more competitive loan rates and terms especially when compared to other fast, short-term loan options such as payday loans. Payday loans tend to have higher rates and unfavourable terms that can result in a cycle of debt, whereas with a pawn shop, you get your collateral item back and it can be used again in the future if you need to for another loan.

  • Credit rating impact

With a lot of loans if you default or make a late payment it can be recorded on your credit report or impact your credit rating, but with pawn shop loans it is different. Pawn shops use the collateral item as security and will keep the item if you don’t repay the loan and they can use it to recoup their losses.

If these loan benefits sound good to you and the loan seems like a good option for you, then why not see what you have that can be used for collateral in a loan? Then come and visit us in either our Margate or Hollywood store to see what we can offer you for a loan.