Oh, the great debate. You’re in need of money. What are your options? The on-going battle between a pawn loan and a bank loan has often been on the mind of people in a bind. We are not here to bash banks, but a pawn loan is a great alternative and will usually not stress you out as much. Let’s go over some benefits of getting a loan from a pawn shop.
Have bad credit? Don’t worry: Everybody has a different situation. Credit checks can be time-consuming, stressful and potentially embarrassing for some. Most, if not all pawn shops will not perform an extensive credit check to approve you for a loan. A bank will. When you pawn an item that is valuable to you as collateral, then you’re going to want it back. This allows pawnbrokers to trust that the customer will pay them back. No questions asked. If you do not pay the loan back, No problem the sell your item after you due date has expired. No bank account or co-signer is necessary either. Just make sure to bring in a valid State picture ID and an item for collateral if you are looking to pawn.
Loan Extension: You can ask for a loan extension at both a bank and a pawn shop. With that being said, the process at a traditional lending institution is once again going to be more extensive and drawn out. It will also negatively affect your credit score. Nearly all pawnbrokers are going to be willing to give you an extension. Pawnbrokers keep their transactions with customers confidential, so you will not have to worry about credit agencies tearing you down. If you need more time to pay off a pawn loan, just ask.
Pawn shop loans are much quicker than bank loans: In most cases you will receive your Pawn loan in between 10 & 20 minutes from when you applied for it. A bank or lending institution may take days or weeks for the entire process. If you need some emergency cash to pay your bills due tomorrow, a pawn shop is the way to go. If fast cash is what you need look no further than your local pawnbroker.
Dealing with a loan officer vs. a pawnbroker: Granted, pawnbrokers do not have the greatest reputation. However, the majority of pawnbrokers are there to help you in a time of need. A loan officer is there to help you too, but more often than not they are only going to help you once they are certain you can pay them back. A bank loan officer is never interested if you have bad credit or are in a bind and need quick cash. Sure, pawnbrokers can be tough negotiators, but when you’re in the pawn business you have to be. Bottom line is that a loan officer is much more likely to turn somebody away than a pawnbroker; plain and simple.
Again the purpose of this blog is not to bash banks or traditional lending institutions. In fact, banks are a great option and may be the best option for you. But if your credit scores needs some work, or a bank cannot get you the money fast enough, then a pawn shop is a great option. Everything starts with research. Review both options and make your choice from there.