In an era when banks are reluctant to loan money to consumers with pristine credit, pawn shops provide a way for those with poor credit scores, no job, and no credit to borrow money quickly and easily. The History Channel hit TV Show "Pawn Stars" has helped legitimize the pawn shop as a legitimate business in the community loans out money as well as buy and sell goods. Pawn shop loans are a quick, convenient, and confidential way to get cash fast.
Even celebrities and business owners use pawn shops. A pawn shop in Beverly Hills called the Beverly Loan Company caters to the stars who have also suffered money problems as a result of the recession.
A bank loan may take two weeks to process, if they are even interested in loaning money at all. A payday loan requires a job or other source of consistent income, which disqualifies those with self-employment income. Selling items on eBay usually results in a payment hold from PayPal which may last for up to three weeks. However, a pawn shop loan can make cash available within 15 minutes.
How to Get a Pawn Shop Loan Fast
Go to a pawn shop with an item of value, such as a wedding ring. A pawn shop employee will take a look at the item and offer money to pawn it. For example, the shop may offer just $10 for a wedding ring that originally costs $200. Don't try to pass off that cubic zirconia wedding ring as a diamond because they can spot fakes and counterfeits from a mile away.
The pawn shop offers a fraction of the amount it thinks it can get for selling an item. For example, if the pawn shop employee thinks that wedding ring can be sold for $40, he may want to offer no more than 25% of what he thinks it can sell for, which is $10.
If a customer accepts the offer, the pawn shop will hand over the $10 plus a claim ticket. To get the pawned item back, the customer needs to pay back the loan plus a fee or interest rate which usually exceeds a 10% fee per month. In California, the claim ticket is good for 4 months and 10 days. This varies from state to state. If the claim ticket expires, the pawn shop owns the item and can sell it.
Most pawn shop loans range from $70 to $100. Of course, the amount greatly depends on the value of the collateral. Jewelry tends to do better than electronics. Because a pawn shop requires collateral for all borrowers, the job status and credit of its customers do not matter at all.
Pink Slip Loan, Car Title Loan, Auto Title loan
Another similar option for borrowing more cash fast that is similar to pawning an item is an auto title loan, also known as a pink slip loan or car title loan. With this loan, it's possible to keep driving the car even though it is collateral for a cash loan. Auto title loans require a car with some value and a source of repayment such as a job, disability, or retirement pension income. The credit of the borrower does not matter. Only the value of the collateral and the borrower's income matter.
Even during bad economic times when banks are reluctant to loan money, there are ways for people to borrow cash quickly, easily, and confidentially. Pawn shops have become a legitimate business that helps everyone in the community from consumers to those who need cash fast.
References:
CNN. "90210-Ouch: Recession trickling up to Beverly Hills" (February 2009).
Pierson, David. "Pawnshops cashing in." Los Angeles Times (December 25, 2008).
