Getting a loan from a bank or lender can be a long, drawn-out process that doesn’t always give you the funds you need. If you need a cash advance or fast personal loans, one of the easiest ways to get the cash you need is through a collateral loan at a pawn shop.
While a pawn shop might not be the first place you think of to get quick loans, it should be! As long as the shop is a place you can trust, like GEM Pawnbrokers, you can rest assured that your collateral loan will give you the cash you need now, with no risk involved.
What Is a Collateral Loan?
When you get a collateral loan from a pawn shop, you’ll need to bring in something of value that you’re willing to give to the shop as collateral. It’s then up to the pawnbroker to decide on the value of the item and offer you a certain amount for a loan.
If you accept the loan offer from the pawnshop, you’ll walk out with your cash quickly, and the shop will hold on to your item for collateral.
There aren’t many limits as to what you can provide a pawn shop as collateral, but it should be something that has reasonable value like:
- Digital/technical equipment
- Musical instruments
Remember, the more valuable the item is, the more likely it is that you’ll get a higher cash loan when you need it most.
How to Repay a Collateral Loan
Pawn shops are great for getting instant cash loans in an emergency, but, if you want to get your item used for collateral back in your possession, it’s important to pay off your loan in the agreed- on time.
If you need more time to pay off your loan, you may be able to pay off the interest only and extend the time. We offer this service at GEM Pawnbrokers. If you’re ready to pay off the loan in full, you’ll simply pay the interest and original loan amount in order to get your collateral item back.
It’s really that simple when it comes to repayment. Your collateral is kept safe throughout the agreed-on length of the loan, so you never have to worry about it being sold during that time, giving you the chance to use the cash you need and pay off your loan when you can.
What Are the Benefits of a Collateral Loan?
Pawn shop loans are great for anyone who needs cash quickly and doesn’t want to go through a bank or lender. If you can’t qualify for a conventional loan, you won’t be turned down at a pawn shop. All you need is collateral, not a perfect credit score.
One of the biggest benefits in getting a collateral loan from a pawn shop is that you don’t have to worry about damaging your credit or getting into any kind of legal trouble if you don’t repay the loan. If you can’t repay in the time you agreed on, your collateral item will go up for sale. So, you don’t have to worry about any long-term drawbacks.
Life happens, and it’s not uncommon to need cash loans quickly for many different reasons. Instead of struggling with a bank and worrying about credit scores, get your emergency cash loans from GEM Pawnbrokers. You can visit any of our convenient locations for an instant quote, and it only takes a few minutes to secure a fast cash loan!