If you are short on cash and in need, then you might be considering any number of loan options – including a pawnshop loan. The truth is that there are pros and cons, and this is not the right option for everyone. Continue reading to learn three reasons it might be the right option and three reasons it might not. Then contact South Bay Jewelry & Loan at (310) 371-4571 for help.
Pro and Con #1: You Can Get Money Quickly – but it Might Be a Small Amount
One of the biggest advantages of a pawn loan is that you can walk out of our shop with cash. On the other hand, the average pawn loan is $150. That said, note that this small amount is only because people generally bring in small things to pawn. If you bring in a luxury watch that’s worth $10,000, then you will get substantially more than $150. In short, the amount of the loan is limited only by the item you bring in.
Pro and Con #2: You Don’t Need Good Credit to Get a Loan – But the Financing Fee is Higher Than Some Other Loan Options
When you need a pawn loan, you do not have to worry about your credit history, whether it’s good, bad, or non-existent. In fact, we do not even pull your credit. We take the item you are pawning for collateral, so we do not need to prove your creditworthiness.
This is a big advantage for many people, but the disadvantage can be higher rates than you would get if you were able to walk into your local Credit Union and get a personal loan. However, the financing fee is much better than you will get on most credit card cash advance fees.
Pro and Con #3: There is No Hassle if You Do Not Pay – But You Might Not Keep Your Item
When you leave an item with us as collateral, you do so with the understanding that if you do not come back to pay for it or make other arrangements, then we can sell the item. This is not a great choice if you know you cannot pay us back and you do not want to part with the item.
On the other hand, if you are unable to pay us back, you do not have to worry about aggressive creditors calling you day and night, sending notices to your work, or affecting your credit score. We simply keep the item, and you can move on with your life.
Do you have questions about how pawn loans work and whether or not they are the right choice for your needs? If so, we invite you to contact South Bay Jewelry & Loan at (310) 371-4571 or stop by during our open hours.
