Pawn shop loans are an option if you need some quick cash. Before you decide to pawn your valuables, understand the pros and cons of pawn shop loans and think about the alternatives. When you take something of value to a pawn shop, chances are you can walk out with some cash. Let’s take a closer look at how pawn shop loans work, and what the benefits and drawbacks are.
How do Pawn Shop loans work?
A pawn shop loan can be a quick way to borrow money because it doesn’t involve a credit check or application process. Your loan amount is based on the value of the item you pawn. If you move forward with a pawn shop loan, you can get the cash right then and there. You’ll typically be required to pay back the full amount of the pawn loan to reclaim your pawned item, though the amount of time you have to repay the loan can vary from state to state. In North Carolina, state laws dictate that pawn shop loan contracts are 30 days, with an additional grace period.
Pawn Shop Loan Pros:
• Pawn shop loans can be an attractive option if your credit is rough and you’re not able to take out a traditional loan.
• For people with no bank account or no one to turn to as a cosigner, pawn loans can be a quick source of money and there’s no credit check required.
• Your credit scores won’t be affected if you don’t repay your loan, and you won’t have to worry about getting calls from debt collectors.
• The consequences of not repaying a pawn shop loan are that the pawn shop simply keeps whatever you pawned.
Pawn Shop Loan Cons:
• If you don’t repay your loan on time, the pawn shop can sell your item.
• You won’t get reimbursed if your item is sold for more than your loan amount.
• Some pawn shops also charge additional fees to pay for things like storage, insurance or renewing the loan for a new term.
Parker Pawn & Jewelry loan professionals
Hopefully, you’ll never be in a position where you have to pawn your family’s valuables. But if you find yourself in need of fast cash and think a pawn shop loan is your best option, be sure to contact Parker Pawn & Jewelry loan professionals to further understand all loan terms and conditions.
While Parker Pawn & Jewelry does give customers the option of a traditional loan setup, we are also proud to offer 24 hour loans. Customers who receive a 24 hour loan from Parker Pawn & Jewelry repay the quick cash loan on the same day that they received it. They bring in items of collateral and once we assess those items, we give them a loan for that amount. All a patron has to do in order to take advantage of our no interest 24 hour loan with no fees is to bring back the pawn tickets they receive and the money to repay the loan on the same day, and we return their items of collateral.
Regardless of your financial situation, if you find yourself in need of a loan, give Parker Pawn & Jewelry a call. We work with our customers to ensure they get the right loan for them, with loan terms that satisfy everybody involved.
If you have any questions about our hassle free loans, give us a call today!