Payday loans online are great source of fast cash, but they are not the only industry in the fast cash business. Pawn loans have a few similarities to payday loans online, but are very different.
The biggest similarities are that they both offer easy access to fast cash and have no credit bureau checks in the process.
What exactly is a pawn shop loan? Pawn shops are stores which will use property as collateral for a secured loan. The loan amount is only a fraction of the property’s value. In other words, an individual may bring a television in with a value of $500, but will only be loaned $200 for it. The loan will accrue interest until it is paid off. There is a deadline of how long the loan term will be set for about one month’s time period. Once the loan is paid off in full, the item used as collateral will be returned. If the loan is not paid off by the end of the term, the lender will have the collateral to sell in order to get their investment and interest returned as well as make a profit since the value is always higher than the loan amount.
Having this collateral seized to repay the loan value is an inconvenience for the borrower, especially if the item carries emotional value. Pawning jewelry can get an individual a decent loan amount, if the loan goes bad, the emotional value will be a greater loss. The good side to pawn shop loans going bad, is that the collateral covers the loan value so there are no collection calls or letters to deal with.
How do you get a pawn shop loan? Bring the item you wish to use as collateral into a pawn shop. You will need a photo ID and a social security card to complete the transaction.
- No application
- No income verification
- No job
- No bank account
Payday loans online are different.
There is no collateral to qualify for a payday loan. The convenience and ease of applying for payday loans online right from home makes these no hassle loans more attractive. The actual application only takes a few moments of your time. A borrower must fill the qualification terms in order to be approved for the loan. There must be proof of income directly deposited into a bank account. A responsible payday loans online lender such as Spotya.com will verify your information as part of best lending practices. Once you are approved, you will usually receive the money within 24 hours. The pay off date is usually set within two weeks according to your pay cycle. Once that pay off date goes by and the loan is not paid in full, is when the interest will start accruing on the balance.
No matter what option best fits your financial situation, shop around to find a lender with low interest rates. Payday loans online are competitive with each other, so it would behoove you to look into more than one company. Most often, you will find multiple pawn shops within the same general location as well. Don’t stop asking questions about any concern you have in order to find the answers you need.
