When you need some quick cash and traditional bank loans are out of the question, pawn shops become good second options. Gems N Loans offers lots of loan options that can help you get quick loans. Pawn shops have been around for centuries, and they have always been a reliable source of quick loans. These places are especially useful for people with bad credit or no credit history since a credit check isn’t required. All you need is an item of value to use as collateral and you can get a loan in no time.

Here’s what you should know when you need quick loans:

The loan process

When you bring an item to a pawn shop, the pawn shop keeper will evaluate the item to determine its value. The value of the item determines how large of a loan can be offered. If you accept the loan amount, you’ll need to sign a contract that lays out the loan terms such as the interest rate and the time to repay the loan.

It’s important to understand that a pawn shop loan differs from a traditional loan. With a traditional loan, you borrow money and pay it back with interest over time. With a pawn shop loan, you use an item as collateral, and the pawnbroker holds onto the item until you repay the loan. If you can’t repay the loan, the pawnbroker keeps the item to sell and recoup their losses. As an upside, failing to pay back a pawn-shop loan won’t hurt your credit whatsoever.

Collateral

Pawn shops typically accept a wide range of items as collateral, including jewelry, watches, electronics, and musical instruments. The value of the item will determine how much you can borrow for your loan. Make sure to bring in items that are in good condition and have a high resale value if you want the most amount of money possible.

Some pawn shops may not accept certain items as collateral; for example, some pawn shops may not accept firearms, while others may not accept items that are difficult to sell, such as used mattresses, old clothing, or damaged tools.

Repayment

When you take out a loan from a pawn shop, you’ll be required to repay the loan plus interest by the due date specified in the contract you were given. If you’re unable to repay the loan on time, the pawnbroker sells the item you used as collateral. Make sure to only borrow what you can afford to repay if you want to keep the item you’re using as collateral, and don’t use items you can’t be without if you are worried about being unable to repay.

Keep in mind that pawn shop loans can come with high-interest rates. Make sure to read the contract carefully and understand the terms of the loan before you sign it, If you’re unsure about anything, ask your pawn shop’s loan broker as many questions as you need.

Getting a quick loan from a pawn shop can be a great option if you’re in need of cash, so keep these tips in mind to make the process as smooth as possible. If you’re in the area, stop by one of Gems N Loans’ many locations to learn more about our loan options. Our friendly staff will be happy to answer any questions you may have and help you get the cash you need!