Okay, now here is one of those questions we come across where I have to give a couple different variations of the answer.
The reason for this is because not all check cashing places operate the same way. We can also consider the various pawn shops that might offer check cashing services.
Given this rather complex nature, the answer isn’t going to be as direct as you might hope it would be, but I will make my best effort to make is clear as possible despite that.
For a moment, let’s just talk about a regular check cashing store. These check cashing operations will often operate with a variety of different services that they offer.
For instance, they may offer things like Western Union, bill payment, check cashing and often some form of consumer loan, otherwise known as payday loans.
Now that’s not always to say that the types of loans that check cashers offer are payday loans.
These days, with laws becoming much more restrictive on the payday loan industry, check cashers are forced to offer different types of consumer loans that have different rules and regulations, interest rates, and sometimes lenders.
When a check cashing service offers a loan of some sort, they may not always be the ones making the loan. Sometimes they will subcontract with other lenders, and just act is the sales representative for those loans.
This alleviates a lot of legal concern for them, and additionally they are still able to make a good amount of money offering these services.
Now what about other types of loans?
You might be wondering if check cashing places do loans. This answer requires a little more in depth explanation than most questions that I usually answer.
What About Pawn Shops That Offer Check Cashing
In cases where the business is both a pawn shop and a check cashing store, they may offer a variety of different services that most typical check cashers would not be able to offer.
For instance, they may still have the option to offer some form of payday loan, or consumer loan offered by a third party.
Additionally however, they will be able to offer a pawn loan to their customers, which traditional check cashing places will not be able to do.
Typically speaking, a pawn loan will be cheaper than your average cash advance or payday loan.
While they may not always be the case, it is true more often than not.
Are There Any Advantages To Consumer Loans, Or Payday Loans, That Pawn Loans Do Not Have
To be quite honest with you, there are some advantages that these other forms of financing have over your typical loan.
Pawn loans are typically only made up to several thousand dollars.
However in order to get $7000 out of a pawn loan you will have to have a substantial amount of merchandise that the pawn shop feels that they will be able to easily resell in the future.
This can be extremely hard to do depending on the types of merchandise that the pawn shop accepts.
In these cases, consumer loans, or payday loans, will be able to offer you a greater degree of flexibility and potentially a greater access to cash when you need it.
We actually have a page on how you can go about getting one of the best types of these loans possible, particularly when a pawn shop won’t be able to pay you the kind of money that you need to cover whatever emergency expense you have.
Mandy Dormain started working for Pawn Nerd in 2020. Mandy grew up in a small town in northern Tennessee. But moved to New York for university. Before joining Pawn Nerd, Mandy briefly worked as a freelance journalist for several radio stations. She covers politics and economy stories.
