Pawn Loans for Fast Cash
Valuable possessions can often be exchanged to acquire a pawn loan.
While pawn shops are a great place to sell your items for cash, they can also be a good way to get some quick extra cash through a loan. All you need is something valuable — such as a laptop or piece of jewelry — that can be used as collateral.
Although pawn loans can be quite costly, an upside is that they often don’t require a credit or background check.
What is a Pawn Loan Anyways?
A pawn loan is when you exchange something valuable as collateral to borrow money in return. Typically, loans will be in small amounts, such as $150 or less but the borrower must return the principal plus interest, which can be as low as 10% or even higher than 200%, depending on the location and each individual shop.
Your items will be safe while your loan is still active, but if you fail to repay the money in time, your items may be kept or sold. As for all loans, it is crucial that you know the due date and amount needed in total. As long as you’re able to repay the money in time for the due date, a pawn loan could be a quick way to get cash without worrying about messing up your credit.
Steps to Getting a Pawn Loan
Step 1: Pick and Take an Item to a Pawn Shop as Collateral
If you have something that’s worth a few hundred dollars, it is likely that a pawn shop will consider it. Ask for a quote and consider the amount the shop offers. The loan will be for a percentage of your item’s value, generally around 25% to 60% of resale value for it. It’s always a good idea to get many quotes from different places so you can consider and make a choice on the best price.
Step 2: Loan Terms and Ticket
Familiarize yourself with the loan terms. Terms can vary between 30 days to a few months and interest rates on your load will depend on state laws. Make sure to acknowledge these terms before agreeing and accepting your cash. You should receive a pawn ticket that will be needed to collect your items upon repayment which should also include any fees, the loan term, grace period and important dates. This ticket is very important so it is recommended to take a picture of it in case it is lost.
Step 3: Due Date
Once the due date finally comes around and you’ve successfully paid back your loan, you will get your item back. However, if there is an issue and you can’t repay it or have misplaced your ticket, the pawn shop is permitted to sell your item to collect on the loan you failed to pay.
What Can Be Pawned?
Common items people pawn include: Jewelry, musical instruments, photography equipment, firearms, current electronics, and tools.
How Pawns Loans Differ from Payday Loans
Pros of Pawn Loans
They’re quicker. You don’t have to go through a lengthy process to get a pawn loan. Simply bring in your item and ask for a loan.
No credit checks. Since your item will be used as collateral for your loan, you will not be screened for credit.
In the case that you cannot pay back your loan in full, you can always surrender your item as repayment without leftover debt or any effect to your credit score.
The Cash for Gold System
It’s very likely that everyone has heard of Cash for Gold at least once, whether it be through adverts online or on TV. It is advertised everywhere on the internet and outside of the shops on the street as well. The Cash for Gold process is rather simple, but people should still be aware of the potential risks of selling your unwanted or overused jewelry.
The Cash for Gold Process
Step 1: Gather up old jewelry that you want to sell. Any rings, necklaces, bracelets and een broken pieces. Some non-jewelry items may also be accepted such as tooth fillings or old coins.
Step 2: Research the current market value prices. Gold and silver prices fluctuate daily, so you’ll need to keep yourself updated on the market and prices before you visit your local pawn shop to make sure you’re getting the most out of your items.
Step 3: Have your items assessed. If you have unbroken pieces or a nice set containing other valuable materials, such as pearls, gems or opals, visiting a jeweler and having them estimate how much your piece should go for may be worth your while in the long run. This way, you will be more well-informed and will have an expected price range to spot out low-ballers or cheaper prices.
Step 4: Now it’s time to visit a pawn shop in person or even seek out buyers online. However your options aren’t limited to these. Often times, payday loan and check-cashing services will offer cash for gold. Make sure to do your research before agreeing to sell anything.
Step 5: You finally got an offer! This price offer will be based on the bullion value and karat of your gold/silver. You may either accept the offer right away or ask for time to consider the amount. You can and should visit multiple pawn shops to compare offers for the best value.
Step 6: Once you find the offer you’re happiest with, it’s time to accept and agree to the quote. You can often get paid the same day and, depending on what you sell, you could be walking out of the pawn shop with a hefty amount in your wallet.
East Village is a pawn shop in East Village, Manhattan that helps you get money fast - come visit us today!