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Pawn Store Loans Near Me

Pawn Store Loans Near Me

There are many options for people who need cash fast, including payday loans, credit cards, personal lines of credit and pawn shop loans. Pawn shop loans allow you to offer an item of value as collateral in exchange for a cash payment. When you repay the loan, the item is returned to you. But when you don’t, the pawn shop keeps your item to sell and makes money from your failure to repay. A CFPB survey found that 73% of people who pawned an item in 2017 still owed money on the loan. Source https://ezpawn.com

Pawn shops appraise the asset you offer as collateral and provide a short-term loan based on that appraisal. They also collect interest and fees for their services. These rates can be quite high. The term of a pawn shop loan is regulated by each state and varies from one store to the next.

What to Expect at a Trusted Pawn Store

Unlike the requirements for other types of loans, getting a pawn shop loan doesn’t require a credit check or information on financial assets. All you need is an item of value to pawn and a government-issued photo ID that proves you’re at least 18 years old.

To avoid the risks of a pawn shop loan, consider alternatives that may improve your credit while providing the money you need quickly. Payday loans and cash advances are easy to get but often come with high interest rates. A personal line of credit is available from most banks and credit unions but requires good credit. Alternatively, you can sell your item to a private buyer through a website like OfferUp or Facebook Marketplace, which will save you on pawn shop fees and interest.