If you are in need of quick cash, you may be considering a short-term loan. At South Bay Jewelry & Loan, we are always disappointed to find out that many people believe payday loans and pawn loans are the same thing. The truth is that these are vastly different types of loans. Keep reading to find out four reasons that we believe pawn loans are far better for the average consumer than is a payday loan, then call us at (310) 371-4571 or stop by to learn more about the loans available to you.
- Pawn Loans Do Not Affect Your Credit Score
- Pawn Loans Have Lower Interest Rates Than Payday Loans
- You Have Longer to Payback the Average Pawn Loan than You Would to Payback a Payday Loan
- Your Pawn Loan Will Never Be Sent to a Debt Collector
No matter what, a pawn loan is not going to affect your credit score. If you do not pay your loan back as promised, then we will reclaim the item you have left with us for collateral. You can take out a pawn loan without worry that your credit will be ruined if an emergency happens and you cannot pay the loan back on time.
One of the biggest issues with rapid lending products like payday loans is that they have enormous interest rates. This is not the case with pawn loans. Because we have collateral for your loan, we have very little risk and therefore do not have to charge exorbitant interest rates.
If you compare how long you have to pay back a pawn loan versus how long you have to pay back a payday loan, you will quickly see that pawn loans generally offer a much longer payback time. States regulate payback periods, so you should talk to your local California pawnshop to find out about the terms you should expect.
If you do not pay back a loan from a payday loan or you do not pay back a bank loan, then you will end up eventually have to deal with a debt collector. This is not the case if you default on a pawn shop loan. In this instance, we have the collateral on hand. We will simply claim that collateral if you cannot pay and will sell the item in order to secure the loan. While you may not want to lose the item you put up for your pawn loan, the fact that you have done so will mean that you cannot be in default.
Call Today to Work with an Experienced Pawn Loan Company
If you are ready to find out more about your options, then we urge you to contact at South Bay Jewelry & Loan at (310) 371-4571. You can also stop by to learn more about selling items, buying items, or getting a pawn loan that can help you get through your current situation.