As per the recent findings, nearly 30-35 million Americans move to the pawn shops to get quick cash. They offer certain items as collateral to get money from these shops. Despite the fact there are so many lending institutions like banks, individual brokers and microfinance institutions that come up with attractive and competitive loan offers, it is still safer to move to a Sydney pawn shop to cater to your emergency cash needs. But, know one thing that you cannot get loan exceeding $100000 from a pawn shop. For a small sum of money and quick cash to clear your utility bills and pay other expenses, you can always knock the doors of a pawn shop. Besides, your items will also remain safe with the shop owners. If the item is of sentimental value, it is best to move to a pawn shop.
What exactly is the pawn loan?
People can conveniently pawn regular items like electronic equipment, jewelry items, gold coins, etc, at a pawn shop to get the loan that needs to be repaid in a particular time period. The tenure of loan is fixed by the pawn shop and also the interest rate. Compare the interest rate online and arrive at competitive rates. In return for the items, the borrower gets advance cash loan. The best part is that the pawn shop will not ask you about the purpose of borrowing money. Till you repay the loan with the interest amount, your items stay safe with the shop. But, the payment has to be made within the time period fixed or else you will prove a defaulter. The amount of cash you get as loan totally relies on the value of the item. If you are selling pure gold coin or bullion, you will get good cash depending on the market value of the item.
You get instant loans
This is a major benefit of taking loan from the pawn shop. As soon as you part with the item, you get the cash amount. So, money received is instant and there is no waiting at all. The processing speed is good unlike other lending institutions where you have to clear many formalities. But, the loan you get from a pawn shop is fraction of the value of the item. You need to agree to the loan amount and the time period before accessing cash.
No fear of bad credit history
If your credit score is bad, there is no need to worry. A pawn shop will not check your credit history or credit score before offering cash amount. A pawnbroker is not bothered whether the credit score is good or bad. Here only the collateral is taken into consideration and its worth.
It will not affect your credit score
Unlike other institutions where your credit report is affected while taking loan, in the pawn loan your credit score is not altered. It leaves no impact on your credit score. Let not the bad credit rating hinder you from taking loan.
Many pawn shops in Sydney offer multiple loans in a day. What you need to do is bringing fresh items as collateral. Besides, multiple loans will not impact the lending ability of the banks. The bank will not know that you have borrowed money from a pawn shop.