Getting Cash Loans from a Pawn Shop
If you find yourself in a situation where you need to get some cash quickly you really only have a few options available. You could borrow from a family member, go to a ‘payday advance’ store, or visit a pawn shop like Diamond District Buyers to get a pawn loan. Many people don’t really understand what this type of loan is, or even that they exist so they end up wasting a lot of time and money by using one of the other options available to them.
If you take a moment to learn about how these cash loans work you’ll quickly see that they have many advantages over any other type of loan. Since you can get them so quickly at any time you need them, you’ll find that they are the perfect way to have access to money when you need it.
What is a Pawn Loan
A pawn loan is when you go to a pawn shop with something of value, and offer it to them as collateral. It could be something like gold coins, a watch, high end electronics or just about anything else of significant value. The pawn shop will evaluate the item and offer you a set amount that they will loan you based on the total value of the item. If you agree, you can walk out of the shop with cash in your hand in a very short amount of time.
If you pawn a watch, for example, you would leave the watch with the owners of the shop. They will lock it up in their secured room until you’re able to repay the loan. You typically have 4 months to pay the loan back in full, plus interest. If at any time you decide that you won’t be able to repay the loan in full, or that you simply don’t want that item anymore you can contact the shop and have the loan converted into a sale. If you can’t pay it back in 4 months, but still want the item back you can extend the loan out for a small fee.
Advantages of a Pawn Loan in New York
In addition to being able to get the money you need quickly, there are many other advantages for the people of NYC who use these loans. To start with, there is no risk to your credit because the worst case scenario is that you can’t repay the loan and it gets converted into a purchase. Along with that, you don’t need to have good credit to qualify since the pawn store in NY won’t even be running your credit. The item you put down as collateral will be all they need to offer the loan.
When you pawn gold worth $1000, for example, they will give you the money right away and if you don’t repay the loan they will simply keep the gold and resell it. This eliminates their risk, and yours. This is a very convenient way to get cash without having to worry about any long term problems which could be caused by the loan.