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HomeFinanceWhat are the advantages of taking loans from pawn shops?

What are the advantages of taking loans from pawn shops?

Emergencies are an inevitable part of our lives and we all are in dire need of funds. It’s not always possible to get instant loans from banks and financial institutions as it depends on several criteria. This is one of the reasons why people are turning towards pawnshops as it has become the fastest way to get instant cash. A pawn loan is advisable if you immediately need a short amount of fund. In this context, let’s read about the various pros and perks of obtaining a pawn loan.

You can get instant loans-

One of the biggest perks of a pawn loan is the speed at which the funds are disbursed. Pawn loans are way better than bank loans since the bank require lot of time to approve disburse your loans.  All you need in pawn loan is property items that have to be given as collateral. The broker will offer loans based on the value of the item that you have pawned. The loan amount is the fraction of the item value. When you approve the offer made by the broker, he will take your item and give you an instant loan against it.

Besides this, a pawn shop like Pawnshop Melbourne offers affordable loan rates to the borrowers and they accept various collateral- luxury watches, jewelry items, gold coins, bags, purses, and bullions. Just like any other loans, you have to repay pawn loans. All you need to do is come back to the shop; repay the principal amount and the interest. The broker will return your valuables to you. You must have been provided with a slip or a ticket as a proof that you’ve kept the valuables with the pawnbroker.

No hazards of credit checking-

Unlike banks, pawnshops don’t require a credit score to offer loans. You need to have a good credit score to obtain loans. But in pawn shops, it doesn’t matter even if you have a negative credit score. These pawn shops collect your items and that is enough security to obtain a loan. In other words, all you need is a valuable item to get pawn loans.

No effects on your credit score-

As mentioned earlier, the pawnshops do not require a credit score to grant loans and therefore, your credit scores will never get affected for delayed payments. The worst part of bank loans is that if you’re unable to pay your installments, it affects negatively on your credit performance. Pawnshops are always the best option especially if you want short loans.

You can get multiple loans-

The only eligibility criteria for obtaining a pawn loan are that you need to have a valuable item. The pawnshops allow their clients to take multiple loans against multiple valuable items- it means that if you can bring new collateral for every loan request, the brokers will give multiple loans for all of them.

But as far as bank loans are concerned, you can never take multiple loans at a time. The first loan has to be repaid for obtaining a second one. However, some lenders reject your loan request in case if you have been a defaulter while repaying the first one. So pawn shops are anytime the best option for instant fund requirements.

As you can see, getting an instant loan has never been easy until pawn loans came into the market. Instead of running from one bank to the other, visit your nearest pawn broken to get a quick loan!

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