Lately, for 3 to 4 years now, the global conditions are not good, and ever since the worldwide pandemic in 2020, the lifestyle has changed. People lost their jobs and loved ones and faced many problems. And now, living in 2023 is still not better. In fact, it is going worse for most people. With this uncertainty, global crises, and high inflation, it has become burdensome for most people to maintain their lifestyles and manage their finances.
Now, people are in dire need of finances and instant cash. More than ever. There are a lot of financial institutes like banks, private firms, and other insurance companies that usually come up with loan offers, but, for a common man like you and me, it gets very tiresome for the entire procedure. Getting a loan approved from such institutes is not a piece of cake. It takes days, multiple visits, zillions of documents, and a lot of paperwork.
To avoid this hassle and inconvenience, around 40 million Americans have switched to pawn shops for loans and instant cash. Yes, you read it right. People have really switched to pawn shops to meet their financial needs. Now the question arises, why would Americans go to a pawn shop for short-term loans? Well, we have an answer to that. Keep reading, and let us tell you why people keep going to pawn shops for their loans and what are the perks of getting your loan from them.
- No waiting, you get loans instantly
The significant benefit of pawn shops is that they lend you a loan right away. So, waiting in the queue, no hassle filling up the paperwork, no need to submit tons of documentation. They offer instant loans, and the process is pretty straightforward. So, in cases of emergencies, people usually run to them. Usually, the procedure they follow is to pawn any valuable items such as gold or diamond jewelry, fine watches, or anything in exchange for fast cash. You can mutually decide the period to pay up the loan; usually, it is up to 3 months; until then, your item will be with them as a guarantee. Once you pay back, you’ll have your valuable item back.
- Zero credit policy
Living in 2023, it is understandable that almost everyone is under some sort of debt during these challenging and high times. Lots of them are on paper, and because of this, they need help to apply for add-on loans. Well, good news for those people. Getting a loan from a pawn shop is easier because they don’t care about your credit score. They hardly care if you have tons of debt or zero. They just follow their own protocol, that is, to pawn any of your collateral items in exchange for money. If for some reason, you are unable to pay back, they will simply sell off your items. This is a con for you, so make sure you don’t pawn a very sentimental item just in case you cannot pay back for it.
- Everything is done behind the walls
One of the significant pros of taking out loans from a pawn shop is that they do most of their work under the table and secretly. This is the reason it does not come up on your credit history. If you are someone who wants to keep your credit score clean or are trying to maintain it but still need cash, you can get it from a pawn shop. They don’t fill up paper works, so it never impacts your credit history. If you take out loans from any financial institution, it will always be on upper paper, and if, for any reason, you delay in paying back, that will impact your credit rating too, but all this hassle does not happen at the pawn shops. If you are unable to pay in time, you can always communicate and talk your way out. If you are lucky, this might work in your favor.
- No paperwork
Taking out loans for any reason can be very personal, and people sometimes feel ashamed of it. A lot of times, people are not comfortable sharing why they need this amount, and it gets very awkward for them to express their issues and helplessness. Banks and financial institutes usually question such stuff to know the authenticity and validity of the person. There is a whole proper procedure for the loan’s approval. People go through the application process, pre-approval, approval, and even post-approval. Sometimes the procedure takes so long that by the time loan approves, and you receive the amount, it will benefit you less than it was before. The whole process becomes stressful. But at pawn shops, this does not happen. There needs to be a concept of paperwork. They are no application process, pre-approval or approval thing. They don’t interrogate, and they won’t ask personal questions. They don’t simply care why you need money. They are just running their business as an ordinary man, and as per their policies, they don’t require any kind of paperwork and submission of tons of documentation. You just pawn your collateral item in exchange for money, and that is it.
- You can repurchase your items
If you are still reading, you should know how the loan policies at pawn shops work and why you should opt for them. The only con, for now, is losing your item so, just in case, for whatever reason, you cannot pay back in time, and even after communicating with them, they don’t cut a deal and put your item for sale, you can always repurchase your item. You know where it is, how much it is for. You can always return to the pawn shop and buy your stuff. If you are lucky and go to a pawn shop in Brockton, they will let you negotiate. We understand this may displease you to know that you have lost the ownership of your valuable to which you may have some sentimental worth. But let us give you a pro tip: in emergencies, pawn that item for which you have minimum or no sentimental value, so just in case you lose it, you won’t be disheartened. Items such as your wedding ring from your broken marriage, any of your gold jewelry that you don’t use anymore and wasn’t a gift, any antique family heirloom which you have no interest in, etc. there, could be tons of things if you look around.
- Your items are safe, so sit back and relax
Pawning on your valuables might create doubts in your mind, that what’s the guarantee that they will lose your valuable items or take over their own way before you pay off your debt? Well, it is customary to think like this, but let us help you burst your bubble. Highly reputable pawnshops, such as in the areas of Brockton, are highly secured. They have CCTV cameras and lockers to keep your items safe. The pawnbroker will always maintain its integrity, so they will give a receipt of the such and such item pawned at this date. You can even demand to keep your item safe in black and white, and if sometimes happens to your item after you pay off the loan, you have a right to demand compensation. This trust enables American to constantly visit pawn shops as they are not scammers and are strictly professional. If you still have a doubt, you can always test them out with a minimal amount of loan and any item you can pawn. But always do your research to particulate pawnshops, read their reviews pay a visit to them, and then pawn your items.
- Lower interest rates
They are running a professional business and have every right to profit and get maximum return on investment, so they charge interest on the borrowed funds. Every financial institution does, but their interest rate is quite higher. Now, most of the reputable pawn shops in Brockton charge a certain percentage per month regardless of your agreement. So, if you only pay back your loan in the first month, you have to pay the interest amount once. But if you delay or drag it for like a year, then every month, your interest value will be added to your loan, and the amount to be paid back will increase, so it is better to pay off the debt as soon as possible.
- More than one loan
Due to uncertainty and inflation worldwide, the amount does not add up nowadays, and even after paying all your rent, utility bills, fuel, your grocery, you are left with nothing. For this, if you go to financial institutes to process another loan, they will close the door in your face because unless you pay off the first loan, no one will lend you another. But the pawnshop is here for you. They will welcome you with open arms. As long as you pawn authentic and valuable items to them, they can process multiple loans. However, the only drawback they have is the limited amount. Every pawn shop has a certain limit amount of the loan to be borrowed per person. It could be $35,000 per person. So even though you are allowed to process a loan multiple times, you will only be able to borrow up to $35,000.
- Zero Impact created
Pawnshops create no impact. For example, if you request a loan from the bank, or any financial institute, pay it off, then ask for another loan, pay it off, and so on. This will all come on your paper and make you look like a person who is always borrowing money. This can impact your life and jeopardize your lending abilities. But this does not happen at the pawn shops. They don’t create an impact on your life. Even if you borrow multiple loans and fail to pay them off, they will still not put this on paper and jeopardize your credit history. This is how it works at the pawnshops.
- Everyone is welcome
At banks and other private financial institutes, there are proper procedures to check if you are eligible for a loan or not. They don’t care about your issue or why you need the money. They run a complete background check on you in order to be qualified. But pawnbrokers welcome and accept everyone. Of course, they have specific standards and a policy, so if you agree to those and pawn your items, they will have no issue lending you the loan. For them, it doesn’t matter if your credit history is scary, you have 0 amount in your bank, or whatever your character is.
All in all:
By now, you must have a pretty good idea of how wise it is to take out loans from the pawnshop instead of any other means of lending. It doesn’t matter if your credit history needs to be corrected or if you are incapable of applying through proper procedure through banks. Processing loans from the pawnshop is always a good idea if you want to avoid any inconvenience.
If you visit any reliable pawn shop in your area and inquire about it, you will know how helpful and authentic they are. Just a couple of pro tips from us, avoid pawning any item which has attachments and high sentimental value to you, always do your research and look for reviews of the particular pawnshops before pawning your items, and have a clear-cut conversation with the pawnbrokers for the agreement. Don’t assume anything; make everything clear. Of course, with so many pros, there are multiple cons, but they still offer you better deals than banks, so before taking out loans, survey all your options, weigh the pros and cons and then decide for yourself.