Pawn shops are typically known for loans against collateral or possessions and are considered one of the safety forms of loans that you can make because if you are unable to repay the loan it doesn’t go against your credit score.
But there are actually business that operate as both pawn shops and cash advance shops and they do this for a lot of reasons. Sometimes it’s a matter of customer convenience and sometimes it’s just about being able to provide the best option for the right situation.
It’s common that when the business does both pawn and cash advance loans that they will also many other service like check cashing, payday loans, Western Union, money orders, etc.
These kinds of business are typically the ‘Swiss Army Knife’ of financial services and there are several large companies that operate under that mode.
With all of that having been said, if you are asking about pawn shops in particular than no.
Pawn Shops Offer Pawn Loans
A cash advance is a different kind of loan than a pawn loan. Pawn shops specialize in pawn loans.
A pawn is when you let a pawn shop hold onto something valuable and they loan you money. When you are ready, you can come back to the pawn shop and redeem your item.
You can get pawn loans without any checking account, no job, and no credit check required.
Cash Advance & Payday Loans Aren’t Pawn Loans
A cash advance typically requires you to have a checking account, employment records and sometimes other documents. Unfortunately not everyone has all of these things handy.
If you don’t have a job, or a checking account – you can still get a pawn loan without a problem what so ever.
It’s something that makes the pawn industry unique in the ‘super techy modern age.’ You just just walk in with something you own and get money for it when you need it.
The Nerd’s Experience
Really both cash advance loans and pawn loans are easy, quick ways to get money in your hands when you need it the most.
The easiest way to tell these two pawns apart is – it you have to let them hold on to something valuable to get the money? If so, then it was a pawn loan.
It’s pretty simple when you look at it in that light.
Thanks as always,
The Head Nerd
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.