Pawn shops are a great place to get fast loans in exchange for your valuable items. While many people go to a local pawn shop to sell belongings they no longer need, pawn shops are also a great place to get an affordable loan. Let’s discuss the advantages of pawn shop loans.
Top Advantages of Pawn Shop Loans
There are many advantages to using your local pawn shop to get a loan. This includes:
1. Instant Cash
One of the most significant advantages of these loans is their instant availability. When you take a loan from a bank, it takes at least a couple of weeks to be processed. However, pawn shop loans can be taken instantly in exchange for your collateral. They don’t take a lot of time to process. You can go into the pawn shop and leave with your money the same day.
2. No Paperwork
When you take a loan from a pawn shop, you don’t have to deal with the lengthy process of filling out the paperwork you deal with when you take a conventional loan. You can simply give the broker a valuable item as collateral and get the loan from them.
3. No Credit Checks
Another significant advantage of taking a loan from a pawn shop is that they don’t check your credit. Brokers ignore your credit. They don’t care if it is positive or negative. Using your item as collateral is enough for them to give you a loan. This doesn’t just help you avoid hard inquiries, but it also makes these loans available to anyone with poor credit.
4. Multiple Loans
You can take as many loans as you want from your local pawn shop. This is important because in banks you need to go through a lot of paperwork to get a single loan. Through a pawn shop, you can get multiple loans, based on the collateral. You just have to bring a new item as collateral for another loan.
When you pawn your collateral, your items are stored in safe places. The brokers put your collateral in a safe place and you will get the item back exactly the way you left it. Pawn shops make sure to take good care of your items because they’ll have to pay if they don’t. When you leave your valuables at the local pawn shop, you won’t have to worry about them being misplaced, damaged, broken, or stolen.
6. Credit Rating
By taking a loan from a pawn shop, your credit rating isn’t affected at all. It remains the same. This is because the shops don’t bother with credit checks. Therefore, there is zero impact on your credit rating. A bad credit rating makes it difficult to take loans from the lenders in the future.
7. You Can Get an Extension
If you are unable to pay the loan, it will not affect your credit and you will not have to deal with debt collectors. The broker will simply take your collateral. If, for any reason, you don’t pay the loan, you can ask for an extension.
Usually pawn shops charge a small interest fee. While some people state that interest rates are higher, you only pay interest for a short period of time. Therefore, pawn shop loans are often more affordable than conventional loans.
Take Advantage of Great Deals at Las Vegas Pawn
If you’re looking for a pawn loan, our Fontana pawn shop has excellent options. Contact us or swing by the shop to learn more.