Financial institutions have thrived over the years since they have been reliable and have come in handy to aid businesses when they need some cash injections, but so are pawn shops. While pawn shops usually don’t offer loans above $100 000, they are great resources if you have an emergency and need quick cash. Many emergencies typically are within the threshold amount that pawn shop offers, which can be an excellent option to help you secure a loan.
Banks and other financial institutions are notorious for the slow process before you can access a loan. They carry out a lot of paperwork and checks, which makes the procedure so lengthy. As a result, many people are turning to pawn shops to secure some cash injection without delays. Why not try a pawn shop like Monte de Piedad to avoid those procedures and get quick cash for your emergency. Here are the advantages they have over other financial institutions.
They are quick to process
The most notable advantage you will get when you get a loan from a pawn shop, the process will take the quickest time possible. Bank loans will take several days or weeks to complete the processing, while a pawn loan shop will process a loan for you on the spot. As long as you have collateral, which is an item that you will use in exchange for the amount you need, you will be granted cash after agreeing between the two of you on an amount and collateral value.
They won’t check your credit score
Another popularity of pawnshops is that they don’t check a person’s credit score. If you have a negative credit score, it won’t use it against you to deny you a loan. The only requirement that you will have to produce is some valuable item. Simultaneously, you won’t have to produce an item that costs millions since a pawn shop offers an amount in the range of $100,000.
Your credit score will not be impacted
Financial institutions focus so much on a borrower’s credit rating, which can be affected if they delay repayments. If your credit score is lower, you will not access a loan from them in case of an emergency. Fortunately, a pawn shop doesn’t operate like this, and your credit score is not a requirement to trade with them. If you want to steer clear of a bad credit score, a pawn shop is a haven for you.
You can borrow multiple loans
You can typically borrow as many loans as you want from a pawn shop. What they will require from you is a new collateral value to secure each new loan. You can solve as many emergencies as possible if you have something of value to use as collateral anytime you need a loan.
They don’t punish the way banks do
If you borrow a bank loan, a situation may occur that you may fail to pay your loan on time, which will negatively impact your credit score. This will affect you from taking another loan in the future from the same financial institution or any others that rely primarily on your credit score. Luckily, pawnshops don’t follow these credit score procedures. If you fail to pay their lawn on time, they will take ownership of the collateral you gave them, which they will sell to cover the amount they gave you. Your worry will only be to accept the loss of your item in case you fail to pay on time.
If you are in a pinch, or an unexpected event has happened to you that requires emergency funds. Visit a local pawn shop, and they will give you instant access to quick personal loans.