The economic collapse of 2008 left many Americans with bad credit and in need safety-net loans. Traditional loans from banks fail to provide consumers, who struggle to keep up with day to day financial challenges, with quick cash solutions. While banks simply don’t offer the types of small dollar, short term loans that most Americans are seeking, some forms of short term lending, like payday loans, can place consumers in a debt cycle and can have potentially damaging effects on their credit.
Every year, millions of consumers turn to pawn loans to secure quick cash with no credit check. Even with perfect credit, many Americans prefer to avoid the hassle of dealing with banks, who often require proof of employment, proof of income and credit verification. The process is time consuming and often requires several visits and extensive paperwork. Even so, most banks don’t offer the small dollar loans with short terms that make pawn loans from pawn shops such a valuable financial tool.
Pawn loans are a great resource for wanting to secure a loan, even with bad credit. Pawn loans are loans secured using collateral, and failure to repay the lay can never affect a consumer’s credit. Any item of value can be used to secure a pawn loan such as diamond or platinum jewelry, rare collectible coins, unwanted gold items, estate jewelry, high end watches, power tools, musical instruments, fine art, etc. Pawnbrokers are excellent at appraising your item to determine its value and get you the most cash possible. If you are unable to pay your pawn loan by the repayment date, you can extend the life of the loan or simply forfeit your collateral to the pawnbroker. Whatever the outcome, your credit remains unaffected and you are under no further obligation to the pawnbroker.
More and more people with bad credit have looked to pawn shops as a solution to their short term loan needs. A bad credit rating doesn’t automatically put you out of the running for loan options. Life holds many unexpected surprises, and sometimes a pawn loan is what is needed to secure quick cash and set things back in order.