Everything You Need to Know About Pawnshop Loans – Your credit card is running out of available funds, and you can’t afford to buy that new pair of sneakers your daughter has been begging you for or pay the electric bill this month. You’re considering getting a loan at the pawnshop, but are unsure of what that entails or whether it’s right for you. Here’s everything you need to know about the pawnshop loan requirements and application process so you can make an informed decision and get back on track financially.
What you need to know about pawnshops
Pawnshops are not in the business of lending. If you are looking for a long-term loan, they will not be able to assist you. However, if you have items that you no longer need and would like a short-term loan until your paycheck comes in, then a pawnshop may be able to help. For most pawn shops there is a simple process for getting a loan: bring the item(s) in question into the store and inquire about the availability of loans. After determining eligibility (as some items cannot be pained), the customer will then fill out an application with personal information such as their name, address, social security number, driver’s license number, and date of birth. Customers are typically asked to provide references who can vouch for them as well as provide other identification such as a social security card or passport.
A decision on the loan usually happens within 24 hours although it can take up to 72 hours if the pawnbroker needs more time to make sure everything is accurate with your application. It’s also important to note that customers must be 18 years old or older in order to take out this type of loan.
How do pawnshop loans work?
Pawnshop loans are secured by the borrower’s goods and are available in quick cash situations, whereas a typical bank loan is not. To get a pawnshop loan, you’ll need a valid photo ID and any other items necessary for collateral. If you have these items and need funds in the future, contact your local pawn shop for more information about the pawnshop loan requirements and application process.
Who Is Eligible For a pawn shop loan?
Anyone who has an item of value they are willing to leave as collateral can apply for a pawn shop loan. The typical collateral is something like gold, silver, or electronics but many pawn shops will also consider items such as jewelry and diamond rings. All you need is a social security number, a photo ID, and your most recent bank statement. To increase the chances of getting approved for a loan you should be prepared to produce this information in person with cash in hand. Most pawn shops will not do any kind of financial transaction over the phone or online. Once you’ve been approved for a loan, there are terms that must be met before the money is released from storage. When taking out a pawn shop loan, it’s important to understand what all of these requirements entail
Is there an alternative to going to a pawn shop?
In the event that you do not want to go through the pawnshop loan requirements and application process, there are a few alternatives that you could take into consideration. We will discuss them briefly below.
-Borrow from Friends or Family: Sometimes one of your close friends or family members might have some extra money they can spare if they’re earning well. If you borrow from a friend or family member, it’s important that you repay the loan in full and on time. Don’t let an opportunity like this pass you by because it may never come again.
-Start a Crowdfunding Campaign: Crowdfunding is when individuals come together and pool their resources to create something new, such as a product or service. These days, crowdfunding has grown rapidly as more people become aware of the opportunities offered by sites like Kickstarter and Indiegogo.
-Check Your Credit Score/Rating: The most common way to check your credit score is with Equifax (you can check both for free once per year). What good is checking your credit score? Knowing what kind of credit rating you have before going into debt helps ensure that you’ll be able to qualify for a loan at all!
What is the process of applying at a pawn shop?
What Happens at a Pawn Shop? First, a customer needs to walk into the pawn shop and find an employee. They can do this by looking for someone behind the counter wearing a store uniform or sign. Once they find an employee, they will then state their reason for coming in, typically related to getting a loan. The manager or whoever is behind the counter will then ask for identification, and tell them about interest rates and what they need to bring with them on their first visit (extra money). Customers are then ready to pay off their loans and collect their items after paying back the original cost plus interest.