Will a Pawn Loan in Barberton, OH Affect My Credit Score?February 25, 2019 9:16 pm Leave your thoughts
Are you concerned about your credit score? Do you fear that obtaining a pawn loan in Barberton, OH might negatively affect this number? Perhaps your hope is the opposite: You’d like to establish good credit history by taking out a pawn shop loan.
The truth is, pawn loans have nothing to do with credit either way. Here’s the scoop.
It’s All About Collateral
When you obtain a pawn loan in Barberton, OH, the funds you receive are based on the items you bring to the pawn shop. The shop assesses the value and gives you a loan based on what they believe they can get for the items if they resell them. You agree to return to purchase these items, with interest, within a specified period of time. If you do not purchase them back, they can sell them to someone else to recoup the money they loaned to you.
Since the entire transaction is based on the value of the items, the pawn shop does not care about credit at all. No credit check is required. No loan defaults are reported. The shop doesn’t care about your credit history, and, if you don’t repay the loan, the shop simply keeps the items. It’s that simple.
Because the loan isn’t reported to any credit bureaus, it cannot affect your credit score in a positive or negative way. It is completely separate from your credit.
The No-Credit Advantage
This separation from credit is the main reason pawn loans in Barberton, OH exist in the first place. Those who have a spotty credit history or lack the employment history that a typical bank would require to secure a loan can still obtain the funds they need. A person’s history has no bearing on the loan. The only thing that matters is the item that is brought to the pawn shop. In this way, pawn loans offer a level playing field for everyone.
A similar principle applies to the interest charged for a pawn loan in Barberton, OH. While banks or other lender sources may vary their interest rates based on credit score or other factors, pawn shops offer the same interest rate to everyone. You don’t have to worry about your credit score affecting the rate you receive.
By maintaining this straightforward loan process, pawn shops provide a simple way for people to get fast cash. Those who are unable to obtain funds through traditional banking sources can get the money they need for emergency situations or other circumstances. This unique service is what keeps pawn shops in high demand.
Tap Your Credit-Free Resource
For loans that don’t touch your credit score, visit Sydmor’s Jewelry and Pawn Shop. We are a full-service pawn shop that offers our customers the option of buying, selling or loaning. We buy and sell guns, tools, jewelry, electronics and more. We also loan cash out for gold rather than requiring you to sell your gold. Stop in with your collateral today, and we will be happy to secure your credit-free loan.
Categorised in: Pawn Loan
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