San Fransisco Pawn Loan Shop Benefits
If you’re in a pinch and need money in an emergency, there are a number of ways in which you can raise some cash. For instance, you can ask your friends or family members to lend you some money or you can get an advance from your workplace in case you have a job. However, many people do not have any of these options and they are forced to look for other ways to get cash in an emergency.
Many people do not know that they can get money at a reasonable rate of interest from a pawn shop and instead, they go to payday loan shops or other such companies offering money at a very high interest rate. There are a number of advantages of using a pawn shop for getting money instead of going to a payday loan shop or any other such company. Here is a list of some of the major San Fransisco pawn loan benefits.
San Fransisco Pawn Loan Benefits
One of the biggest San Fransisco pawn loan benefits is that it is easily available. It is a win-win situation for everyone involved as you can keep a valuable as collateral and get a loan at a reasonable interest rate. For instance, you can keep jewelry, car and a number of the other valuable things as collateral with the lender to get loan.
As far as the amount of loan is concerned, it usually depends on the type of collateral. In case of jewelry, some of the lenders may offer you up to 80 to 90% of the value of the jewelry as loan. It is one of the best ways to raise fast cash as you just need to walk into the shop and ask for money.
When you ask for a loan from a bank or other financial institution, you will have to provide a lot of documents and the application process will take you a number of days. Also, the processing officer of the bank is going to take a number of days to decide on the loan application. They will approve the application only if the application satisfies their strict criteria but in this economy, it is extremely difficult to get loan approved by a financial institution in case you do not have a very good credit score.
On the other hand, if your application is in declined, you have just wasted a number of days. Also, you cannot depend on banks and other financial institutions if you need money in an emergency as they take a number of days to process and approve the application. When you want to get emergency cash, you just need to take the collateral with you and show it to the appraiser at the pawn shop.
Once the official appraiser appraises the item, a value for that item will be quoted to you and a percentage of the total value will be offered as a loan. Since this is a secured loan, the rate of interest is extremely reasonable and the term of the loan is also extremely reasonable. In most cases, you have up to 120 days to repay the loan.
One of the most common misconceptions related to these types of loans is that these tend to be expensive. Nothing could be further from the truth. In fact, if you take all the fees into account, these loans tend to be cheaper than credit card late fees, utility reconnect fees, overdraft fees and a variety of other types of fees.
Since this is a secured loan, the rate of interest is much lower than the rates that are typically associated with payday loans. Also, you get generous terms for repayment which means you have a lot of time to get the money and repay the lender and get your things back from the lender.
When you’re comparing the cost, it is important to compare the fees you are going to pay as overdrafts, utility reconnection fee or other such fees to the overall interest you will be paying for the loan.
No Credit Check
Pawn shops do not carry out any kind of credit check on the borrowers as they only give secured loans. In other terms, if an individual is suffering from bad credit, the best way for that person to raise money is through a pawn loan. As no credit check is required, no such loan is reported on the credit reports.
Favorable Repayment Terms
When you take money out of your credit card or apply for a loan from a bank or another institution, you are required to be payback money each month. In other words, these institutions expect you to repay a part of the loan each month. However, there is no such requirement with pawn loans.
You only need to repay the interest on a regular basis but there is absolutely no need to repay a part of the principal each month. You can repay the principal whenever you want. In simple terms, you have a lot of time to repay the loan which is not the case with loans taken from banks and other financial institutions.
Extensions and Renewals
Similar to other loans, you can also extend as well as renew this type of loan. You will be required to pay only a part of the interest owed to extend the term of the loan.
Overall, there are a number of benefits of these loans. However, it is important that you take this loan only from a shop that is properly licensed and regulated by the state as well as local authorities. You also need to make sure that the shop is insured and the item you are placing with them as collateral will be locked up in safe. The staff needs to be properly trained and experienced.