A pawn loan is a collateral loan which means it is a loan given based on the value of something you own. When you bring something of value to a pawn shop to take out a pawn loan, the pawnbroker will determine the value of your collateral and offer you a dollar amount to loan on that item.
Your credit score or any other financial history will have no bearing on the loan. Basically, any person with something of value can take out a pawn loan. This type of collateral lending is so helpful to people, because, not only do they not have to worry about proving good credit, they also do not have to worry about possibly damaging their credit if they cannot repay their loan.
The pawnbroker simply keeps the collateral used to secure the loan and credit agencies are not involved. Additionally, pawn loans can be obtained quickly.
You’ll have cash in hand the same day you visit the pawnbroker so that any emergencies or unexpected expenses can be covered. Pawn shops are also the only place you can take out small dollar loans so you don’t have to worry about large repayments to a bank or credit card company. To learn more about the process visit our how it works page.