If you need money fast you may not get it fast enough if you get a traditional loan from a bank. Instead of this, you can get money fast by using a pawn shop. Below are three benefits of doing this so you can get the money you need.
No Credit Checks
When you apply for a loan whether that be at a bank or a quick loan, they will check your credit. If your credit score falls below are certain number, you will be denied. If you are approved, you will likely have to pay a very high interest rate. This is the case no matter if you have poor, good, or great credit.
A pawn shop does not check your credit score or credit history. This is because when you need money you have to leave collateral. This means letting the pawn shop hold something of yours that is valuable enough to cover the loan you receive. The main thing to consider with this, however, is if you do not pay the loan back the pawn shop will keep the item.
Quick Money
You can walk into a pawn shop and walk out with the money you need in only a few minutes. Once you and the pawn shop owner agree to an amount you will have to sign a contract. The owner will then hand you cash.
The main thing to consider with this, however, is that you generally do not get even close to the amount that the item you are using for collateral is worth. For example, you may be using a new smartphone that is worth $500 for collateral but may only receive $100 from the pawn shop. This does depend on exactly what you use for collateral and the pawn shop, however. Even though this is true you have to take into consideration that you will get the money you need.
No Interest Rate
With a pawn shop you will have no interest rate at all. If you pay the loan back in the time set in the contract that you signed you will only pay back the money that you borrowed.
If you are not able to pay the money back on time, talk with the pawn shop owner. They can choose to simply keep your item and send you on your way. They may also choose to extend the length of your loan to give you more time to pay it back. The only thing with this is the pawn shop generally charges a fee at this point. What the fee is depends on how much you owe and the pawn shop that you choose.
Talk with a few pawn shops in your area to find one that you feel comfortable working with.
