Small pawn shops loans are the best way to borrow money fast. You are not questioned whether you have the means to redeem your belongings or not by the scheduled deadline, and you can get the cash after the pawnbroker has verified the value of your items used to secure the loan. It is very popular especially among the older generation before the advent of payday loans. The biggest difference between pawn shop loans and other types of cash loans is that, you will not be in debt and will not incur any further monetary losses apart from your pledged possessions if you default on the payments. Other types of secured and unsecured loans will accrue interest quickly and sink you deeper into debts when you keep missing the payment dates. In this aspect, a 30 day pawn shop loan can be the safest approach to borrow money for bad credit.
Most pawn shop loans are legitimate and a quick, convenient way for anyone with bad credit to get cash fast. Choose the largest national pawn shop chains such as Cash America International, EZ Pawn, First Cash Inc etc if you like the newer style of management where you get friendly pawnbrokers and good service.
Even if you have good credit, a low interest bank loan can take two weeks or more to process. A non-bank cash advance takes an hour, but you pay much higher interest rates instead. If you do not have a job or cannot prove your income sources, you cannot even qualify for a credit union loan anyway. However, you can bring a watch or laptop into the pawn shop and borrow the needed cash quickly within 15 minutes (queuing time not counted).
Due to certain state regulations, you may not be able to easily find a pawn shop operating near you. Generally, if there are existing consumer laws passed to limit the pawn shop loan rates, there will be less lenders in that state. For example, pawn shops in New York City are not allowed to charge more than 3% on loans, thus you can find less and less open for business. In contrast, pawn shop loans in Florida or Texas etc are charged up to 20% per month, and you can find more than one thousand stores there.
For borrowers that cannot qualify for low interest bank loans or need some cash fast, a small pawn shop loan is still a pretty safe solution to tide you over any temporary monetary problems. It will not ruin you financially with increasing interest fees and debts, the worst that can happen is that your pledged belongings are forfeited and sold off by the pawn broker unlike the risk of debts from taking a $3500 installment loan for bad credit.
You need to provide your driver’s license or any other identification card with your photo on it. Some will also request your fingerprints to be placed on the record. These are security measures to prevent people offloading illegal items and stolen goods at these premises, and should not deter you from getting a legit pawn shop loan.
In a typical pawn shop transaction, you bring in an item that whose value can be easily checked, such as an expensive watch with all papers intact, gold jewelry, computers etc. The pawnbroker will appraises your item and offers you a 300 dollar cash loan, which will be typically lower than what you expect from selling off the item yourself. This is because they need to cover the cost of holding the item and eventually selling it off if you do not redeem before the deadline.
If you accepts the pawnbroker’s offer, the merchandise will be placed at the store for safekeeping while you collect a pawn ticket that specifies the loan amount and lending terms. In most states, pawn shop loans are issued on 30 days deadlines, but you can extend these for up to two months by paying the interest accrued so far as well as service fees. If you are not able to pay back after 90 days, your items are either sold on the store’s retail shelves or in the case of New York, these are sold at public pawn shop auctions.
So why do you want to accept a pawn shop cash loan smaller than what you can get by selling off your jewelry? When that valuable has sentimental value or you still want to continue owning it, a legitimate 30 day pawn shop loan offers a pretty good solution to get your some cash over the short term giving you a chance to redeem it.
Business at pawn shops have been brisk throughout the recession. Many people encounter money problems and cannot get a loan from banks because of bad credit. However, you can get loans when you have no borrowing history. The only requirement is the value of your belongings used to secure the loan.