Pros and cons of getting a pawn loan with gold

When you are looking for some extra cash a loan is one of the options many people turn to. Some people sell their belongings to raise cash, but there’s an option to use your belongings to raise cash without having to sell them. Pawning your items is a great way to raise some money by using them as collateral in a loan.

Gold prices are high and gold items remain popular so gold pieces offer a great price and therefore their value for a pawn loan is good. You can use most gold pieces for a pawn loan.

What are the pros of a pawn loan with gold?

1. Quick and easy – pawn loans are very quick in comparison to other loan types as you can call into a pawn shop and walk out with the cash straightaway. The paperwork is minimal and simple, and the staff will guide you through the process.

 

2. Eligibility & checks – there is no eligibility criteria for a pawn loan and no credit checks will be conducted and no proof of earning, unlike many other loans which means that most people can access them. You just need the collateral item to cover the loan. Your credit score will also not be impacted by the loan.

 

3. Collateral – the loan only requires the collateral item to cover the loan. You don’t need to provide your home as collateral. When the loan has been repaid you will get your collateral item back and during the loan period, the item will be stored securely.

 

4. Flexible loan – pawn loans are more flexible than some other types of loans. Pawn loans can be repaid early without penalty and if you can’t repay the loan before the end of the loan term you may be able to extend the term so that you don’t lose your item.

What are the cons of a pawn loan with gold?

1. Risk of losing collateral item – the collateral item is at risk if you are unable to repay the loan. The ownership of the item is transferred to the pawn shop when you take out the loan and they can use the item to recuperate their losses if the loan isn’t repaid in full. Therefore you shouldn’t use items that you wouldn’t want to lose and you should ensure you have the means to repay the loan before taking it out.

 

2. Amount of loan – the loan value is determined by the collateral item and you shouldn’t expect to get a loan for the full value of the item but a reasonable proportion of it.

 

3. Fees or rates – All loans have fees or interest rates which vary depending on the type. Pawn loans can be higher than other traditional loans, but convenience and accessibility can make them attractive. Fees are better than some other types of quick, low-value loans such as payday loans which tend to have higher rates plus shorter and less flexible terms.

If you are interested in a pawn loan using gold visit one of our 24 conveniently located stores across the New York City area for a friendly and fair service that you can trust because of our 70+ years of experience.