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7 reasons why getting a loan from a pawnshop is better 

Are Pawnshop Loans Worth It? – Forbes Advisor

Do you need cash and are considering a loan? If so, you might have thought about a payday loan. For anyone who has not used a payday lender, this option seems to be the best option to access small amounts of cash in a hurry.

If you had to choose between payday loans and pawnshops, which should you choose and why?

#1. Quick and easy

Getting a loan from a traditional lender can be like pulling teeth: It is a long and painful process. You have to book an appointment, fill forms out, wait for your credit report, and wait for someone to make sure that all the checks and balances are done. This could take 1 week to 4 weeks.  Just search for a pawn shop near me if you are in a hurry for cash

Pawn loans are quicker. You don’t have to go through everything a traditional lender will take you through. They are quick. You could be in and out of a pawnshop with cash in 15 minutes or less.

#2. Credit scores

Pawnshops do not conduct credit checks. Your credit score does not matter.

#3. No Garnishment

Most money lenders will garnish your wages if you do not pay your loan off. This means that these lenders will get an order for your employer to withhold a portion of your salary and transfer it directly to them until your debt is repaid.

Pawnshops do not even require that you be employed. If things don’t get better for you and you find yourself defaulting, they will simply keep your valuable items and sell them to recoup the loan amount.

#4. Variety of loan amounts

A pawn shop can give you a loan for as little as $75 -$100 if that is what you need at that time or $20,000 if you bring in something really valuable. Unlike regular lenders, pawnshops are very flexible.

#5. Loans paid out in cold hard cash

While other lenders like payday lenders some out cash via a bank or on pre-paid cards, pawnshops issue cash instantly.

#6. Pawn Loans are less expensive than payday loans

Not only is it fast, easy, and easier to get pawn loans, it is also cheaper. Pawnshops charge a smaller interest rate than payday loans and some may even give you a grace period to sort yourself out and get your items back.

#7. Legal ramifications

No one will sue you or threaten you with legal action if you find yourself unable to meet your contractual obligations.

When you search for a pawn shop near me and you realise you can’t pay your loan back, you simply need to be prepared to forfeit your valuables to the pawnshop and they can sell it to get their money back.

It’s that easy!