Strapped For Cash? Why You Need A Pawn Loan

Posted on: 5 December 2022

If you're dealing with an emergency situation, it may be time to visit a local pawn shop. If you're like most people, you think that pawn shops are only for buying and selling merchandise. That's not the case though. Pawn shops also offer short-term loans. These short-term loans are especially beneficial during emergency situations. For one thing, pawn shops don't follow traditional banking hours. That means you can apply for a loan on the weekend. But, there are other reasons to apply for a cash pawn loan. Read the list provided below. You'll find three of those reasons.

No Lengthy Application Process

If you're facing an emergency situation, you can't afford to wait for loan approval. Unfortunately, banks don't offer the easiest loan application process. In fact, the process can get complex, and time-consuming. Plus, you'll need to provide a lot of personal and financial documentation. That's why you need to choose a pawn shop loan instead. Pawn shops offer easy loan applications. You won't need to go through the lengthy process that banks require. With a pawn shop loan, you'll have your approval in a matter of minutes. You also won't need to wait for your loan to get funded. You'll walk out of the pawn shop with the funds you need. 

No Hard Inquiries on Your Credit

If you want to protect your credit, you don't need a lot of hard inquiries. Unfortunately, hard inquiries can take points away from your credit score. If you need to apply to more than one bank, you'll get extra points taken from your score. You won't need to worry about that with a pawn shop loan. That's because pawn shop loans don't affect your credit score. In fact, the pawn shop won't look at your credit score before approving your loan. 

No Stringent Use Requirements

If you need a loan, you don't want to explain why you need the money. But, most banks want to know what you'll use your loan for. If you need to use the money for an unapproved reason, you might not get the bank loan. Pawn shop loans are different. With a pawn shop loan, you don't need to explain how you plan to use the money. That means you can use the money for any type of emergency. Plus, with a pawn loan, there's no minimum loan limit. So, you don't need to borrow more money than you need. 

Contact a pawn shop near you to learn more about pawn loans.