Posted on: 10 May 2016
Are you in desperate need for some quick money? If so, you might be thinking about taking out a payday loan or opening another credit card. But these types of loans can have high-interest rates and end up setting you back even further financially if you miss a payment. If you're looking for a better solution, look inside your jewelry box. It may be possible to get a loan from a local pawn shop by putting your jewelry up as collateral. Here are three reasons why getting a collateral loan in a local pawn shop might be right for you.
Lower Interest Rates
Interest rates will vary by shop, but in general, you won't be charged as much interest as a payday or other quick cash loan because there isn't as much risk for the pawn shop owner. They get to keep your jewelry if you don't repay them, so that gets factored into the calculation. As long as you make the repayment on the loan by the agreed upon date, you won't be charged additional interest and you'll get all of your jewelry back.
Some pawn shops may put a limit on the maximum loan you can receive but in general, the amount of the loan is directly related to how much jewelry you bring in as collateral. If you know you need a hefty sum to fix your car or take care of another problem, you might not be able to find a payday loan center that will give you the full amount that you need.
No Credit Checks
If you've been burned by credit cards or payday loans in the past, chances are your credit probably isn't that great and could prevent you from getting another traditional loan. But a pawn shop offering loans in the collateral business has no need to check your credit. Using your jewelry to obtain the loan will allow you to get the money you need, but it also protects the pawn shop owner in case you default on the loan.
A collateral loan is a great alternative way to get some fast cash without having to resort to a payday loan center or another high-interest solution. As long as you are willing to risk parting with your jewelry, you can likely get a larger loan than you would otherwise and at a lower interest rate. A collateral loan may also be your only remaining option if you have made some mistakes in the past that have hurt your credit. Take your jewelry into a local pawn shop today for more information.Share