If you need cans quickly but do not have a good credit score that can get you a personal loan, then you’ll have to find some alternative ways of lending money. Your bank may not be too keen to lend you money but there are other options you can explore like payday lenders, auto title loans, and pawnshop loans.
These options might not be ideal but if you had to choose one, you would be better off taking a pawn loan. Pawnshops a simple and easy to obtain. They also have lower interest rates and do not require a good credit history nor will it affect your credit score.
Pawn loans require very little, as long as you have valuable items to put up as collateral then a pawnshop will be able to offer you cash for it. Other lenders will require you to be an employee. They may also check your credit score and more. You can be unemployed, have no bank account or credit a pawnshop will still give you a loan. Pawnbroking is one of the oldest professions. It has been around for centuries and they still operate under the same principles. Our ancestors didn’t have to consider credit scores. FICO is an entirely different system that became relevant in this century. The collateral system worked well back then and it still does today.
The pawning process is quite different these days. Pawnbrokers Brisbane accept a variety of things including jewellery. Get your old gold chains, bracelets, and rings out from that dusty jewellery box, give them a little bit of a wash, and head on over to your pawnshop. If your items have a high resale value then you can get a good amount of money for your items.
To assess its value, the pawnbroker might ask you a couple of questions like what the history behind a particular piece might be. They may so ask a series of questions to determine if the items truly belong to you. They will then ask if you should like to pawn or sell the items. If you are sure whether you want to part with your gold just yet, you can use it as collateral for a loan. If you have no more need for it, then you should go ahead and just sell it.
The loan that you will get from a pawnshop will depend on the value of your items. Pawnbrokers Brisbane will typically make an offer that is 25 – 60% of the retail value of your valuable items. You should keep in mind that the resale value of anything will always be less than the actual amount you would pay when the item is still new.
Pawnshops typically charge a finance fee instead of an Annual Percentage Rate (APR). This could turn out to be a little expensive. If you did your maths correctly, a pawn loan could charge 13 to 1,3000%. Compare that to a typical personal loan that charges an average of 9,65% APR, pawn loans could be regarded as quite expensive. For instance, if you were to pawn something with a resale value of $1,000 and the pawnshop offers you a loan of 25% of the item’s retail value you will also have to be prepared to pay a transaction financing fee. If the interest rate is 25% and add to that.
When everything has been considered and you have accepted the loan, you will get your cash in minutes. The pawnbroker will issue you with a pawn ticket with all the relevant information about your pawned item and details about the loan. Do not lose the ticket because without it you won’t be able to reclaim your goods.
A pawn loan is usually valid for 30 to 60 days. There will be no penalties for defaulting on your loan. However, just like most things, pawnshops have their pros and cons. Educate yourself and weigh the options that are available to you. If you want quick, risk, and hassle-free loans then pawn loans are ideal for you.