Pawnina Shares: Common Pawning Misconceptions
Hi, everyone! Pawning has been around forever, and it’s funny but many people don’t understand a lot about this source of quick cash. Which is sad, because it’s one of the safest loans you can pull out when you have an emergency or just need extra cash. Today I want to help you understand pawning a little more.
So, here we go! Here are the 3 most common pawning misconceptions dispelled and proven wrong.
Pawnshops really, really just want to keep your item.
When you pawn an item for cash, it’s obviously going to be something valuable. After all, the amount of cash you get depends almost entirely on how costly your item is. Many times, these items are also going to be personally important. It’s never easy to give up what’s valuable enough so, when the deadlines loom and there’s a chance to lose that valuable item, many people get anxious. It’s easy to vent out to a pawnshop and think that they want nothing more than to just keep your item!
While your item has value, that value only comes to be realized if a pawnshop manages to sell it at the right price when you can’t pay your loan. So long as it can’t, it doesn’t make any money off the item. This is especially critical for items that lose value over time, like smartphones and gadgets that get commonly outdated. So, it makes sense that a pawnshop wants nothing more than for you to pay back your loan with the interest! This way, they make a profit to help them keep going!
Pawnshops have crippling interest rates versus banks.
Banks and formal lending institutions often have lower interest rates than pawnshops, that’s true. What’s important to note here is that it’s also much harder and takes longer to pull out a loan from a bank. The truth is that most people in the Philippines can’t qualify for a bank loan. This isn’t an ideal situation especially if money is needed quick and badly. Besides, the reason that traditional pawnshops have to charge up to 7% interest is that pawning is the only way they earn money, and that they have to cover the costs and expenses of keeping a physical pawnshop running day to day.
So, to say that pawnshop interest rates are crippling is wrong. They simply have to be high to keep the shop running. Online pawnshops like PawnHero are a special exception where the interest rate is much lower because all of the operations are done online. Without a physical pawnshop to maintain and run, they can pass on the savings to their customers in terms of a lower interest rate at 2.99%! This, naturally, makes it easier on the cash-strapped pocket and helps people recover their item at the end of the loan period.
Pawning is very complicated, unsafe, and a hassle.
Like every other loan, you have to go out there and pawn an item at a shop to get it done, right? That’s not always easy given the heat and traffic our city is known for. It’s a little more tense especially if you’re planning to pawn something truly valuable and expensive! There’s also the matter of security to think about. The thought that their valuable item might be snatched or stolen is enough to make people feel a little nervous about going for a pawn.
That’s precisely why PawnHero has taken pawning into the wholly online realm. Not only is it far safer (You do everything from your home’s comforts and safety), it’s also very convenient. You have, for one, our webpage with its guided step-by-step process or you can even download the Android app to put the power to pawn in your hands anytime and anywhere.
PawnHero will handle picking up your item and securing it in our protected warehouse. When we release your loan, we either deposit it into your personal bank account or provide you with a Security Bank PawnHero Card that lets you withdraw said amount from anywhere in the Philippines. You’re never at risk with this system and everything is done at your convenience! So, don’t be worried, give it a try today!