Five Benefits of Pawn Shop Loans

July 3, 2020 11:13 pm Published by Leave your thoughts

No one likes needing a loan to cover an emergency or get through a tough time. Spending hours at a bank only to be declined due to bad credit is embarrassing, and also wastes precious time. This is where a pawn shop loan can help. Many items qualify for pawning, including tools, jewelry, musical instruments and even firearms. To help you consider this option, here are five benefits of pawn shop loans in Barberton, OH:

  • Instant money: If you are facing utility shutoff or have a car in the shop, you likely need the money quickly. Since other types of loans can take weeks for approval and a few days to transfer into your bank account, that is likely not fast enough to prevent catastrophe. When you take out a pawn loan, you receive cash immediately. All it takes is valuing your item and determining a fair amount to loan against it.
  • No credit check: This is good news if below-average credit keeps you from getting the help you require. Pawn loans are based on the value of the item, not your credit score. Pawnbrokers do not bother to ask about your credit history. As long as the item you provide offers sufficient collateral, you are approved for the loan.
  • No credit impact: If you are unable to pay the loan, the pawnbroker sells the item and uses the proceeds to pay your loan. There is no report to credit agencies that will further lower your score. The same goes for late payments—if you end up making a payment one day late for whatever reason, that will not show up on your report. However, if the item you pawn is a valuable heirloom, you will lose it and face the emotional consequences of that loss. If your situation is precarious and you believe there is a chance you will not be able to pay the loan, choose something of value that will not hurt if you lose it.
  • You can get more than one: Banks and other traditional lending facilities only allow you to secure one loan at a time. That means if you solve one disaster only to face another, you do not have access to additional funds. This is not the case with pawn loans. You can take out as many loans as you have valuable items to pawn, even if you are still paying off the first loan.
  • Less paperwork: Other than showing ID and filling out forms so the pawn shop rests assured your item is not stolen property, there are few questions and less paperwork with a pawn loan. No one cares why you need it or interrogates you about income sources and the amount in your bank account. This can be a relief if you face a temporary bad spell or the reason for needing the funds is highly personal or even slightly embarrassing.

Need a pawn shop loan in Barberton, OH? Sydmor’s Jewelry & Pawn Shop is here for you. Check out our reviews for reassurance and visit today to start the process.

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