Pawnshop Loans Vs Other Loans | PawnHero YouTube Channel
Mary Grace: Hi, guys! I am Mary Grace and welcome to another episode of PawnHero Channel. Pawnshop loan is a convenient way to access quick cash. Today, we will discover its advantages and how it compares to other loan types!
Since applying for a pawnshop loan doesn’t involve a lengthy application process and a credit check, it serves as a convenient and fast way to borrow money. This is especially attractive for people who are unbanked and don’t have a good credit standing. The way these short-term loans work is also easy and direct — your loan amount is based on the asset’s value to be pawned.
So how does pawnshop loan differ from other loan methods? Let’s explore:
First up, Personal Loan.
Personal loans let you borrow money without collateral. The borrower only needs to show they have enough income and credit history to prove that they can repay the loan. With this, you can borrow any amount and will be given ample time to pay it back.
The downsides of personal loans include high interest rates, application and origination fees, and fixed payments you need to accomplish on time. The loan is also subject to the bank’s approval which sometimes takes days to process.
Second, Credit Card.
Using your credit card to borrow money is certainly convenient and fast. One swipe and you get to purchase what you wouldn’t otherwise have afforded if you used cash. With responsible use, you can build your credit and earn rewards.
However, credit card cash advance rates can be either a minimum flat rate or a percentage of the amount advanced. You have to review the terms and conditions before you push through with the credit card cash advance.
Third, Salary Advance.
If you’re only in need of a small amount to cover your bills or unplanned expenses, you can ask your employer for a payroll advance where you will be handed a portion of your next paycheck.
The downside is it could easily put you in a vicious debt cycle. Since you will receive less of your paycheck the subsequent month, you may find yourself short on cash, causing you to get another short-term loan.
Pawnshop loans, credit cards, salary advance—these are all convenient ways to borrow money. But they’re not ideal for all financial situations. You have to carefully assess your needs and weigh your options to choose which loan method is best for you.
Here at PawnHero Pawnshop, we make it a breeze for people in need of fast cash to borrow money anytime, anywhere. Customers only need to present their collateral such as jewelry, designer bags, luxury watches, high-end gadgets and two valid government IDs to request for a loan — no need for long and complicated forms or documents!
Cash is released through bank deposit [InstaPay or PESONet] and other electronic payout options the same day as you’ve accepted our final offer.
If you need quick cash, contact us at PawnHero Pawnshop, and get a free estimate for your item today!