Have you ever considered using a pawn loan when you need an infusion of cash?
If you haven’t ever leveraged the power of a pawn loan before, when you’re scraping together cash for a down payment, it’s a good time to get to know this option. You can get the money you need and still get your valuables back.
The Ins and Outs of a Pawn Loan
When you’re applying for a loan, lenders look at your credit score and your credit report. They might ask you questions about any late payments on your account. In other words, your finances are analyzed closely and there’s a chance they might deny your application if they think lending you money is too risky.
When you get a pawnshop loan, it’s based on the value of the item, not your credit. This is called a collateral-backed loan. If you have less-than-favorable credit, you don’t have to worry about getting turned away.
If you have an item that a pawnshop could resell quickly, you will likely get a cash sum worth a certain percentage of its value, after the pawnshop adds on fees and a profit. This type of loan is simple. If you decide you can’t or don’t want to pay it back, the pawnshop will then sell your item for profit.
Why it Works
You probably aren’t going to get a great rate or even qualify for a loan if you’ve taken a huge credit-card cash advance or applied for a personal loan to use as a down payment.
With a pawnshop loan, since you’re using collateral instead of credit, the money you get can be used toward whatever goal you have in mind, and a mortgage lender won’t ever know the difference! This is why a pawn loan is helpful even if you don’t have bad credit. If you simply want cash without anything going on your credit report, this is the right option for you.
A Pawn Loan vs. Selling Outright
It’s smart to consider the potential drawbacks of a pawn loan beforehand as well as the benefits. Here’s the biggest one: You might not get as much from a pawn loan as you would from selling your item outright. A private seller would most likely plan to use the item themselves, while a pawnshop owner needs to be able to sell it and make a profit.
While you’ll probably get a higher offer from a private seller versus a pawn lender, you can’t buy the item back from the individual, but you can get your item back from your pawnbroker, as long as you abide by your contract.
When You Need Cash Fast
Come to Premier Pawn when you need a pawn loan, and get the money you need for your next car or house down payment. We give fair quotes and get you cash fast.