A lot of people don’t know what a “Quick cash pawn loan” is or how they work. That’s okay and to be honest, before I began working in this industry, I had no idea what they were either. That having been said, for those that don’t know what a quick cash pawn loan is, let’s elaborate some and help you understand.
I suppose we could start off by answering what a pawn, or a pawn loan, is. A pawn loan is the type of loan that is made by a pawn shop based on collateral that you bring to them.
They will hold onto those items until you are able to come back and repay the loan, plus any interest of storage charges that have accrued on the loan.
Once you’ve paid that off, the pawn shop will give you back your item(s) just like you left them.
Should you need to make a loan again, pawn shops are very happy to help repeat customers by loaning on the same items that they have already had in the pawn shop previous.
These pawn loans are one of the most affordable forms of short term financing for most people and just about anyone can get a pawn loan.
You see, pawn loans aren’t based on your credit score or how much money you have in the bank. They are based instead purely on the item(s) that you bring into a pawn shop to make the loan against.
Additionally, the loans are made in cash, on the spot. What that means is that after you walk into the pawn shop and make your loan, you are going to walk out with cash on the spot that you can use to cover whatever expense you might have.
Why Do People Use Quick Cash Pawn Loans
The next question that people might ask is why would someone use a quick cash pawn loan and the reasons can be varied but they almost always come down to an unexpected event in their lives that left them a little short on funds that month.
It happens to everyone and pawn shops have customers from all walks of life. A lot of people are under the assumption that only ‘poor’ people use pawn shops, but that couldn’t be further from the truth. We’ve had men pull up in brand new $140,000 Mercedes S-Class’s just to make a pawn loan so that they could cover payroll for the companies.
Ultimate, pawn loans are one of the very few forms of financing that let normal people borrow small sums of cash,immediately. They are safe, secure and best of all, private!
How Much Do Quick Cash Pawn Loans Cost
When making a pawn loan, you can take a degree in comfort knowing that in most states, pawn loans aren’t going to cost you and arm and a leg to pay back.
Pawn loans are often considered one of the most affordable means of short term financing accessible to the general public.
The fee’s associated with pawn loans are often much cheaper than payday loans for example. Let’s take a scenario in Ohio to illustrate this.
In Ohio a pawn loan costs 5% interest per month, plus a $4 storage fee. If you were to get a $80 loan to cover your electricity bill, it would cost you just $8 ($4 interest, plus $4 storage.) Compare that too the cost of a disconnection fee, or a hit to your credit record.
How Much Are Quick Cash Pawn Loans For
There’s really no limit to how much money you can borrow on a pawn loan. It’s only limited by the value of the merchandise that you take into a pawn shop with you.
That having been said, the national average for a pawn loan is $150. There are many cases where people get loans for just $10, and other cases where people get loans from $10,000. It all really boils down to what your needs are and what you can bring with you as collateral.
Will A Quick Cash Pawn Loan Affect My Credit
Absolutely not. Pawn loans having nothing to do with your credit and your credit is not checked before you can make a loan.
If you can’t pay back your loan, the pawn shop will end up keeping your items. At that point in time, the loan is considered pain in full and there’s nothing that goes on your credit report.
The pawn shop won’t sue you for not paying back you loan and nothing else happens. That’s why pawn loans are considered one of the safest forms of short term financing available today.