Looking into personal loans Lakewood or any other location, but want a less traditional option? How about a pawnshop loan. You take an item with value to a pawn shop and get a short-term secured loan. There are pros and cons to getting a pawnshop loan so here is a look at what those are, so you can make the best decision for your situation.
What are the pros of a pawnshop loan?
Here are some of the advantages or good things about this type of loan.
- No credit check and does not impact your credit score - this is one of the few ways you can get a loan and they do not first check your credit rating to see if you can be approved. Taking out a pawnshop loan has no effect on your credit score too. You could not pay back the loan and it will still have no impact.
- Very fast way to get money - even the quickest of other loan types take a few days. A pawnshop loan can have you in and out with the money in hand in under 30 minutes!
- Will not be hounded by lenders if you cannot pay it back - with this loan they take ownership of your collateral and recoup their money by selling it. They will not hound you or send it to people who will make your life difficult.
- Easy and convenient - all you need is a local pawnshop and something of value they are happy to give you a loan against. It is not complex like some person loans Toms River can be and anyone can take advantage of it.
What are the cons of a pawnshop loan?
Here are some of the disadvantages or cons of this type of loan.
- Not a way to build your credit score - while that lack of impact on your credit is a good thing should you not pay it back, or should you have a bad credit score, it does mean you cannot build good credit this way. Having good credit is valuable, you are better able to rent, get loan approval, get credit cards, buy a car or home and so on.
- It will cost more than many other types of loans - the interest rates are higher than other types of person loans Toms River.
- There is a chance you lose ownership of your possession - if you are not able to repay the loan you cannot reclaim the item of value you brought in.
- Usually, loan amounts are smaller - a pawnshop loan tends to be for smaller amounts so if you need more than that you will need to choose another loan option.
Other options to consider
If you need cash other than getting personal loans Lakewood, here are some ideas;
● If you have bills outstanding you could as them for an extension on payment until you work out your temporary money worries.
● Ask for a loan from a friend of relative.
● Rather than pawning something you could sell something at a pawnshop or elsewhere.
● Get some cash using your credit card. Just be wary of their interest rates.
● Get into the habit of saving small amounts to create an emergency fund you can turn to next time round.