The Convenience of a Pawn Shop Loan vs. a Bank Loan

February 26, 2018 10:11 pm Published by Leave your thoughts

Pawn shops not only offer a wide selection of items for sale, they also provide services like pawn loans. Here are a few frequently asked questions about getting a loan from a pawn shop in Barberton, OH.

How do you pawn an item?

Pawning an item is not as hard as it may seem. You might decide to pawn something because you haven’t used it in a long time. That money can go toward other things, like vehicle repairs, rent, groceries or a vacation. But you have a couple options here—you can either sell the item to the pawn shop, or get a pawn loan. In the case of a pawn loan, the pawn broker will offer you a dollar amount for the item and hold it until you pay off the balance of your loan. Keep in mind that the loan will likely not be for the full market value of the item.

Why get a pawn shop loan when you can apply for a bank loan?

Applying for a bank loan will require a thorough credit check. On the other hand, a pawn shop in Barberton, OH will be more lenient with clients because they do not need a credit check. So, if you are looking for a quick and convenient way to borrow money, a cash loan from a pawn shop is the way to go. But how does it work? A pawn loan is a collateral backed loan, meaning you can put up something with value to get a fast loan, and you don’t need credit to your name to get it. As long as you pay back the loan in the agreed-upon amount of time, you will get your valuable item back.

What are some reasons for getting a pawn loan?

People typically choose to get pawn loans when they need cash right away. For example, you need to get your car repaired now, because without it you can’t get to work. You can take something valuable that you own—like a watch, jewelry or musical instrument—to use as collateral in exchange for the cash you need for the car repairs, then pay it back in the future. Small or independent business owners often utilize pawn loans, or collateral backed loans, in order to make payroll.

What happens if you can’t repay your loan?

The result of not paying back a pawn loan is losing the item you offered as collateral. However, most pawn loan clients repay their loan on time and come back to the pawn shop to reclaim their items. If you are not able to repay the loan in full, then the pawn shop takes over ownership of the item and places it out on the shelves for sale. Make sure to clarify with the pawn broker the pawn loan period, interest rates and monthly payment agreement.

Pawning your valuables for a quick cash loan can help you get by until the next pay period. To get a better understanding of pawn loans, don’t hesitate to contact the team at Sydmor’s Jewelry & Pawn Shop.

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