If you are in a tricky situation due to a lack of funds, and don't have the greatest of credit, it is still possible to go somewhere else and get a loan in your time of need: a pawn shop. There are numerous items that you have around the house that can qualify for pawning, such as jewelry, tools, firearms, and music instruments. You may not have even thought about a pawn loan to help you out of a rut, but here are a few benefits of these types of money loans.
You Can Get Money Instantly
If your electricity is about shut off, your car just broke down and needs repairs, or you are facing a medical emergency, you may be in need of money quickly. Some loans can take days or weeks to be approved, and then a couple of more days for the money to be transferred into your checking account. In emergency situations like those explained previously, you simply don't have time to waste. With a pawn loan, you will receive the money that you need immediately. Your item simply needs to be assessed to determine its worth, so that a fair loan amount can be determined.
There Is No Credit Check
Unlike at a bank, you will not need to undergo a credit check to receive a pawn loan. Therefore, regardless of your credit history or credit score, you will be able to get a loan as long as the item or items you bring in provide sufficient collateral for a loan.
There Is No Credit Impact
Because you do not undergo a credit check for a pawn loan, there is no negative—or positive—impact to your credit, in the event that something happens and you are unable to pay back the loan and retrieve your item before the end of the loan term. The same is true with late payments. However, keep in mind that if you do not return to pay your loan in full, you will lose whatever item you pawned.
You Can Get Multiple Pawn Loans
When you go to a bank to get a loan, you are only able to have one loan at any given time. This means if you end up having another disaster after solving the first one, you will be unable to gain access to more funds. With a pawn loan, though, you can get as many loans as you need, as long as you have sufficient collateral to put up for them. This is true even if you have not paid off your first loan.
If you have any questions, don't hesitate to reach out to a local pawn shop.