Getting loans from pawn shops is much quicker and easier than borrowing money from banks, family and friends. Banks and other financial institutions require credit check, minimum loan amount and then take time to approve a loan whereas borrowing money from friends and family can become embarrassing. So, it can be said that pawn shop is the best option for short term loan.
If you need a short term loan urgently, a bank would not be able to help you. This is the time when a pawn shop can help you in getting loan immediately. Moreover, if your credit history is bad and you need some amount of money to make it until your next check, a pawn shop is the right place. Transaction in these places happens very fast and you will get money as soon as you sign the agreement (I trust Legal Zebra in terms of composing loan agreements). Usually cash strapped low income workers come to pawn shops to have their items valued for paying off other immediate bills and then when they will have the money, they can get their items back.
If you somehow fail to repay the pawn shop loan, it will not create any problem. You will not face any type of legal consequences. These shops will keep your collateral. Though, the processing of loan is done legally and legitimately. When you pawn an item, you will get a pawn ticket which states the terms and conditions of the loan and also includes your name, address, description of your collateral, amount of money lent to you, interest rate and maturity date of the loan etc. You need to pay the amount to get your collateral back at the end of the maturity date.
Pawn shops offer a convenient, fast and safe way to borrow money regardless of your credit history. There is no hassle in getting loan from this shop whereas applying for credit loan from a bank is a time consuming task. You have to fill up and submit a lot of applications and documents for getting loan which will take time and effort. In pawn shops, you will get the money by signing the agreement. Moreover banks lend money only against some specific collateral like deeds of properties, stocks and bonds that have market value. On the other hand, pawnshops accept almost all types of goods like second hand jewelry items, watches and even wine collections.
The most important advantage of taking loan from pawn shop is that you will not be asked to produce the details of your credit history. You will not face any trouble for your negative credit rating. That is why it has emerged as the most required alternative for those people who are restricted to take loans from commercial banks because of bad credit history. Pawn shops do not care about who you are, what you do, what you know etc. all they care about is what you get. So for meeting immediate financial emergency, this is the best option.
Find a Money Mart Pawn store near you for a pawn loan right away!Share