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Pawning is often seen as a last resort for those in need of quick cash. Surprisingly, however, it can be a better option than traditional forms of borrowing like payday loans, credit cards, and over-drafting bank accounts. All of these may come with hidden fees and conditions many are unaware of until it’s too late. This is why pawning merchandise at pawnshops is better than (often) predatory forms of obtaining money. Pawning is straightforward and easy to understand. This is why people have used pawn shops for thousands of years!

One significant advantage of pawn shop loans over title loans and bank loans is the flexibility they offer. When it comes to pawn shop loans versus bank loans, pawn shops shine. They provide an accessible avenue for those seeking personal loans to address their immediate financial needs. Pawn shops understand that everyone's circumstances are unique, and they tailor their loan amounts and repayment terms accordingly. Whether you need a small loan to cover an unexpected expense or a larger sum for a significant financial commitment, pawn shop loans can accommodate your needs. With a streamlined application process and quick access to cash, pawn shop loans are the ideal solution for individuals looking to navigate their personal finances with ease and efficiency.

Let’s take a look at pawn shops and see why they’re better than other methods of obtaining fast cash:

1. Cash in minutes

If not wanting to part with your old merchandise forever but still want fast cash, consider a same-day pawn loan. Simply bring in your item of value, pawn it, pay off the pawn loan (plus any interest), and then get your item back! Pawn shops can lend you a considerable amount of money (depending on the item) and may charge a lower interest rate than you’ll find elsewhere.
Not to mention, it’s almost impossible to obtain a small loan from other institutions. For example, you generally cannot go to a bank and receive a small dollar loan; loans are typically for big purchases like a house, car, or business. Pawn shops offer cash solutions that other businesses often cannot. The best part is that there’s no waiting around to get your money - EZPAWN can give you cash in as little as five to ten minutes.

2. Lower Interest Rates

Pawn shops typically charge much lower interest rates than payday lenders or credit card companies1. This can save you hundreds or even thousands of dollars in the long run.

3. No Credit Check Required

Pawning does not require a credit check, making it a great option for those with bad credit or no credit history. This is one of many reasons customers choose pawn shops over other forms of lending. If a customer doesn’t pay off the pawn, then the pawn shop simply keeps the item instead of the customer going into further debt. Thus, the requirements aren’t as prohibitive and customers who are unbanked or underbanked can get access to money they often otherwise couldn’t obtain through traditional financial institutions. Lastly, you do not need a co-signer, the transaction is very fast, and you can walk out with cash within minutes!

4. No Collections

That’s right! When you pawn an item at EZPAWN but don’t make the scheduled payments, your credit will not be impacted. Your account is not sent to collections because a pawn loan is a secured loan – meaning you obtain funds by providing collateral for it. You must repay the loan in full, plus a fee, in order to get your item(s) back. To restate, if no payments are made, you forfeit the item, and the pawn shop is now able to sell it to recoup the pawn (loan) given to you. And that’s the end of the transaction; any unpaid pawn loans are not reported to collections. This is one more reason why pawn loans are ideal when needing cash!

5. Tax Season

Pawning can be an especially useful option prior to tax season. If you are expecting a refund, but need cash immediately, you can pawn items to tide you over until your refund arrives.
Maybe you’ve got bills to pay or an unforeseen expense, like fixing your car or house. You can pawn something of value and then pay off the pawn loan prior to the due date and get the item back once you receive your tax refund and use it pay off the outstanding balance.

6. Flexibility

In some states, you’re allowed to pay back only a portion of your pawn loan if you cannot pay the full amount that is due on the scheduled due date – this is called an extension. Compared to payday and other lenders who automatically take the full payment due directly from your bank account via ACH (payment authorization that gives the lender permission to electronically take money from your bank, credit union, or prepaid card account when your payment is due”2), pawn shops typically do not require ACH payment and provide the option to pay a lesser amount than what is due. Note that when you pay just a partial amount due in the form of an extension, you extend the term of your pawn loan.

So, if you're tired of the limitations and hurdles that come with traditional lending options like bank loans, payday loans, and credit cards, look no further than pawn shops. Pawn shops are the unsung heroes of quick and accessible cash. Pawn shop loans offer a refreshing alternative to the red tape and stringent requirements of banks. Unlike the lengthy application process and stringent credit checks of bank loans, pawn shop loans provide a straightforward and hassle-free solution. With pawn shop loans, you can borrow money quickly and easily without the need for a pristine credit history or a lengthy wait.

A man and woman are laying on their stomachs on the living room floor with their dog looking at an iPad while smiling and pointing at it.

Overall, pawning can be a better option than traditional forms of borrowing due to lower interest rates, no credit checks, and the ability to keep your possessions – once a pawn loan is paid back in full. Plus, pawning can be an effective way to get cash before tax season, when many people need extra funds, to then be paid back once tax refunds are distributed and applied to the loan balance. This makes pawn shops a great source for those in need of cash, but unable to get it from a traditional lender! Visit your nearest EZPAWN today to find out more.

1. https://www.incharge.org/debt-relief/how-payday-loans-work/
2. https://www.consumerfinance.gov/ask-cfpb/i-was-asked-to-sign-an-ach-authorization-to-allow-electronic-access-to-my-account-in-order-to-repay-a-payday-loan-what-is-that-en-1569/#:~:text=An%20Automated%20Clearing%20House%20(ACH,You%20can%20revoke%20this%20authorization