iQuanti: Pawn shops offer some of the fastest and easiest secured loans. You can use nearly any item as collateral and get a loan that same day with no credit checks. However, borrowers who have never gotten this type of loan and need one now may be confused about how it works. Understanding the process will make things go as smoothly as possible so you can get the funds you need without any hassle. This guide will walk you through how to get a pawn shop loan in five steps:
1. Select your collateral
First, pick an item you want to use as collateral. You want something valuable enough to get you the loan amount you need but not so valuable that you're not willing to lose it. That's because the pawn shop could seize your item if you fail to repay. Before you bring in the item, make any repairs needed and ensure it's nice and clean. The quality of the item can help you get a larger loan.
2. Find a pawn shop
Once you have your collateral, you'll need to find a pawn shop to get a loan from. Pawn shops differ in the items they specialize in. For example, some may specialize in jewelry, while others may lean toward musical instruments and equipment. Additionally, you'll want to find pawn shops' reviews, if possible, to ensure they're legitimate. So, it's smart to research and find a pawn shop that specializes in your collateral. This could help you get a more accurate appraisal and, potentially, a larger loan amount and better terms.
3. Get the item appraised
Next, bring your item to the pawn shop. The pawnbroker will spend some appraising the item to approximate its value. There are no credit checks for pawn loans, so no need to authorize one. When finished, they'll bring the item back and offer you a loan amount and terms. You may be able to negotiate a bit, depending on the pawnbroker and your willingness to haggle.
4. Accept the loan and begin repayment
Once you and the pawnbroker arrive at an agreement, and you've read the terms of the loan, you'll accept the loan and sign the paperwork. The pawnbroker will take possession of your collateral for the time being. They'll then disburse the loan to you as either a check or direct deposit. The pawnbroker will also give you a pawn ticket so you can prove you're the owner of the item when you come back later to repay your loan.
5. Reclaim your item upon payoff
Pawn shop loans can last from 30 days to a few months. In order to get your item back, you'll have to pay off the loan plus finance charges within the term length you agreed to. Then, you can show your pawn ticket to the pawnbroker to reclaim your item.
If you're unable to repay by the due date, you may be able to extend the loan for some fees. If you're unable to repay in general, the pawn shop will take the item from you and sells it to recoup losses. But luckily, there are no other consequences, such as credit damage or collections calls.
The bottom line
Pawn shop loans are extremely fast and easy to get if you know the process. Start by choosing your collateral and researching pawn shops to find a reputable pawnbroker specializing in your item. Then, just bring that item in for appraisal and accept the loan terms if they work for you. Repay the loan on time, and you'll get your item back. The worst that happens is you lose your item if you're unable to repay. Follow this process and you'll have a pawn shop loan before you know it.
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Original Source: How to Get a Pawn Shop Loan in 5 Steps