Are you looking for a way to get a bit of money as quickly as possible? Do you wonder about different opportunities to get the money you need for a bill that’s due soon? If so, then you need to look into getting a pawn shop loan.
There are many pawn shop loan benefits that you’ll gain access to when you choose this route. It can be an excellent way to get the money you need without affecting your credit score in any way.
See below for several benefits of a pawn shop loan that you may not have known. Be sure to consider these as you decide whether or not to get one.
1. Simplistic Process
Pawn shop loans are one of the simplest forms of loans that you could receive. For those of you that are unfamiliar with it, it simply involves you taking an item of value to a pawnshop, and using it for collateral for a certain amount of money.
You agree to pay back the loan within a certain amount of time (usually no longer than 30 days) to get back the collateral that you used.
The process is easy to understand and doesn’t involve layers of paperwork or background checks to get approved for. The pawn loan provider will tell you the details of the loan and get you the money you need.
2. Doesn’t Affect Your Credit Score
One of the most unique aspects of a pawn loan (and top benefits) is the fact that a pawn loan won’t affect your credit score one way or the other.
Too many people are afraid to take out a loan, even if it’s a small amount, because of the risk of negatively affecting their credit score. That’s not a concern with a pawn shop loan.
The entire loan is collateral-based. That means that the only risk involved if you don’t pay off the loan in time is losing the item you initially used to receive the loan. As long as you pay off the loan, you have nothing to worry about!
This allows you to have an option for quick cash when you need it. Do you have a bill that needs to be paid without the funds to do so? If so, the pawn loan offers you that benefit without risking your credit score due to unforeseen circumstances.
3. Cash Right Away
Everyone has those moments where they’ve forgotten about a bill or need to pay for something unforeseen, but don’t have the cash to do so.
Maybe your car needs a replacement and you’re a bit short on the cash to cover it. Perhaps you have a repair on your home that only needs a small amount of cash to be fully paid off.
Whatever the case might be, you need that cash and you need it fast. A pawn shop loan gives you the option of receiving a same-day loan. That way, you’re walking out with the money you needed right away.
Most other loans take more time to receive. Even if you request a smaller amount, most loan providers take days to check your credit score, look at your background, and so on.
Now that you have an option to get your cash right away, you can fix your car quicker, get your air conditioning back up and running, and so on. No need to put your life on pause while waiting for a loan to come through for an unforeseen expense.
4. You Choose the Collateral Item
Often, when you apply for a loan, you don’t have a say in what the worst-case scenario is.
In other words, if you don’t pay off the loan in time, you’re dealing with consequences that you couldn’t negotiate. For example, if you don’t pay off your car loan in time, the bank/dealer can repossess the car. That was a non-negotiable part of your loan.
A pawn loan, on the other hand, gives you way more control of the loan. You get to choose the item that you use as a collateral piece in the loan. That could be things along the lines of cars, RVs, trucks, trailers, boats, motorcycles, and so on.
No one is going to demand that you use the 1965 Ford Mustang that you inherited from your father as collateral. You can use another item that has less value. Whatever makes you feel more comfortable about the loan.
5. Security for Your Item(s)
One of the biggest worries (justifiably so) is probably going to be the security of your item that the loan provider is holding on to until you pay off the loan.
As long as you agree to a loan with a reputable pawn loan provider, that will never be an issue. Your item(s) will be safely stored away until you pay off the loan.
Before you sign the contract for a pawn loan, ask about where they store your items while you pay back the loan amount. Will it be stored outside or inside? What’s preventing it from theft? How do you keep track of the items? Ask as many questions as you’d like.
Unlock the Benefits of a Pawn Shop Loan for Your Needs
Now that you’ve seen all the different benefits of a pawn shop loan and the freedom it can grant you, be sure to use it to your advantage.
Be sure to read this article for more information on how to pawn your motorcycle title to get the money that you need.
For more inquiries, please be sure to reach out via our contact us page and we will be happy to assist you further.