Why Pawn Shop Loans Are Great For People With Bad Credit

August 18, 2020

By admin

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There are more than 11,000 pawn shops around the United States, and the industry has over $14 billion in revenue dated today. Pawn shops are a great way to sell any of your belongings quickly when you need cash. Pawning gold or pawning jewelry are common types of belongings for people to pawn, as almost everyone owns some type of jewelry. Credit is never an issue when looking for a loan from a pawn shop, bad or good it’s still possible to receive a loan. Pawn shop loans are especially good for anyone looking for loans for bad credit. There’s a reason why the pawn shop industry is so successful — because for many people, it works!

No Credit Check

When you don’t have good credit, it’s either impossible or extremely difficult to receive a loan. The pawn shop industry makes it possible and a little easier for those with bad credit to get a loan. Credit isn’t something that is checked when you go to a pawn shop, they simply don’t care about your credit. By not checking your credit, this means that there’s no risk for your credit to be damaged any further. If by chance you fail to pay back your loan, it is not reported back to any debt collectors or a strike against your credit score. No one will try to hunt you down for the loan money that you may owe. Instead, the pawn shop will just sell your collateral and move on.

Better Interest Rates

Loans for bad credit tend to have very high interest rates, making it even more difficult to pay back. Looking for loans for bad credit doesn’t have to mean that you will pay a substantially high interest rate. While the interest rates from a pawn shop loan can be high, they are usually cheaper than the average title loans or payday loans. By having cheaper interest rates than the average loan for someone with bad credit, pawn shops make it more possible to pay back any loans taken from them.

No Cosigner Necessary

Having bad credit means that in order to be approved for a traditional loan, you may very well need someone with good credit to cosign for you. Not everyone has access to a friend or family with good credit, who is willing to cosign on a loan for them. This makes pawn shop loans the perfect option for anyone struggling with their credit. It’s never required for someone to have a cosigner in order to receive a pawn shop loan. The only thing necessary to have is something for collateral, which can be anything of high value.

The Quickest Option

With traditional loans, they take time for you to actually receive the cash you need. It could take days, sometimes weeks to find and be approved for a traditional loan. The process of obtaining loans for bad credit can be very time-consuming. If you are in need of a quicker option, pawn shop loans are perfect. In a matter of hours, you can have the desired amount of cash you need, much quicker than any traditional loan.

Pawn loans are a really great option when looking for loans for bad credit. The traditional loans tend to prey on anyone struggling with bad credit, giving them impossibly high interest rates that will only land them in debt. Pawning gives people with bad credit the chance to escape the possible debt that comes with a traditional loan. It’s a great way to receive quick cash without the dread of negatively impacting your credit even more so.

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