Pawn shops offer collateralized lending without affecting your credit score. In fact, even if your credit score is not good you can still get a pawn loan. When you take out a pawn loan your creditor, the pawnbroker, does not need to worry about whether or not you will repay your loan. Instead of a good credit score and proof of income, the pawnbroker guarantees your loan with your collateral.
This means the customer is able to take out a pawn loan risk free. Should you not be able to repay your loan the pawnbroker simply keeps your collateral to sell and cover the cost of your loan. An unpaid loan to a pawnbroker will not be reported to any credit agency as the loan is considered satisfied by the collateral you used to obtain the loan in the first place.
If you need quick cash for an emergency or any other reason and you don’t want to risk your credit a pawn loan may be the answer for you. You can pawn gold, diamond jewelry, platinum jewelry and many other valuable items. There will be no credit checks and more importantly a pawn loan will never affect your credit score. It’s a simple, risk-free way to get fast cash when you need it most.