Pawn shop loan vs payday loan

If you are looking for a short-term cash injection you may be looking at different loan options including pawn shop and payday loans and wondering which option is the best for you. So read on to find out why a pawn shop loan is a much smarter option.

How does a pawn shop loan work?

A pawn shop loan is a simple loan that uses an item as loan collateral and the loan value will be based on its value. The item will need to be appraised in store by a trained member of the team who will give you a fair value for the item and will arrange the loan for you. This process is quick and easy and you can walk away with the money straight away.

How does a payday loan work?

Payday loans work based on a loan against your next paycheck so the loan term is short especially if you take the loan out later in the pay month. You will need to repay the loan on receipt of your pay. The interest rates on payday loans are high and they can impact your credit rating.

So how is a pawn shop loan better?

Pawn shop loans are better in many ways as they are fairer to the borrower. The rates are lower for a start as they are competitively priced, unlike much higher payday loans. Many states across the US have banned payday loans and others have placed restrictions on the rates so that borrowers don’t pay too much for the loan.

The terms of a pawn shop loan are also more flexible as we are a people business and we want to help you. The length of the loan is more flexible than a payday loan and if at the end of the loan term you can’t pay the loan off, you can discuss extending the loan term so that you can still get your collateral item back at a later date.

We also make getting a loan simple as life is complicated enough. We don’t ask for excessive amounts of information or paperwork.  We don’t need to know how much you earn, you just need to have a collateral item to use for the loan.

Your loan with us won’t impact your credit rating either and we don’t check credit ratings to get a loan.

What more can you ask for? If our simple, lower-cost and quick short-term loan sounds right for you, visit us at either our Hollywood or Margate store to find out more.