Many people considering a pawn loan make the mistake of thinking that it is similar to a payday loan. In fact, they are quite different. Keep reading to learn four of the most important facts you should know before you decide to take out a pawn loan. If you have questions, contact South Bay Jewelry & Loan at (310) 371-4571 or stop by our convenient location.
- A Pawn Loan Will Not Affect Your Credit Score There are no situations in which pawn loans affect your credit score. If you do not pay us back, then we keep the item you have left as collateral. We do not contact the credit companies. We do not impact your credit score. In fact, we do not even check your credit score before offering the loan – all we need is an item of value as collateral.
- A Pawn Loan Has a Lower Interest Rate Than You May Think Most people believe that any rapid lending product will have a soaring interest rate. This is not the case with pawn loans. We have very little risk because we hold on to the collateral until you repay the loan. As a result we do not have to charge incredibly high-interest rates to make a profit. You will likely find yourself surprised at how affordable our loans are.
- You Have Much Longer to Pay Off Your Pawn Loan Than You May Think Another major difference between a pawn loan and a payday loan is that you likely have much more time to pay back a pawn loan than you do a payday loan. Every state has different regulations and each pawn shop may have its own rules and regulations. You can always give South Bay Jewelry & Loan a call at (310) 371-4571 to learn more about the length of our pawnshop loans and the options available to you.
- Your Pawn Loan Will Never Be Sent to a Debt Collector If you default on a payday loan or a bank loan, you can bet that you will end up speaking to a debt collector sooner rather than later. They can be aggressive, rude, and can even call your employer. This is not the case with a pawn loan. Since we already have the collateral on hand, there is no “punishment” if you are unable to pay us back – we simply keep your item.
We Provide Clear Terms
When we offer a pawn loan, it is important that our clients know exactly what they agree to. We will make sure you know when the loan is due and how much you must pay to get your item back. If payments are allowed, we will give you a specific schedule. We want this to be beneficial for both of us. Call South Bay Jewelry & Loan now at (310) 371-4571 with any questions.