You have a few places to turn if you’re facing tough times financially. Getting a personal loan from the bank is the traditional route, but anyone working with a bank needs to have good credit and be ready to wait for a few days or even weeks to get approved for their loan.
An auto title loan or a pawn loan is the best bet for fast cash without a credit check. We specialize in pawn loans at Harrison Street Pawn, and this post will cover the difference between title loans and pawn loans.
Auto title loans
Anyone who owns their car outright is eligible for an auto title loan. As the name implies, these loans give the borrower a portion of the car’s value in exchange for the title. While the borrower can qualify for a few thousand dollars in a matter of minutes, there’s a big catch: they can lose their vehicle if they default on the loan.
In addition to the high stakes of losing their title, auto title loan institutions often charge exorbitant interest rates. Although some states have a cap on the interest rate, the annual percentage rate (APR) can be up to 300 percent! With this in mind, anyone considering an auto title loan should be ready to pay an arm and a leg in interest.
Instead of getting an auto title loan and risk losing their car, we recommend anyone needing cash visit pawn shops. In addition to selling goods, a pawn shop offers pawn loans. With a pawn loan, a borrower will hand over a high-value item—like jewelry or a TV—in exchange for a cash loan.
The loan amount a borrower receives for their item depends on the value and condition of the merchandise. For example, someone will get more cash for a piece of precious jewelry than they would for outdated electronics.
Though the amount a borrower receives might be lower than with an auto title loan, the repayment terms are much fairer and have lower interest rates. If someone fails to repay their loan in time, they’ll simply forfeit their item to the pawn shop.
In some cases, a borrower may choose not to repay their loan at all, and just let the pawnbroker keep their item. There are no legal or financial repercussions for going this route.
What should someone look for in a good pawn shop?
All pawn shops aren’t created equal, so anyone looking to pawn an item shouldn’t just go to the first pawn shop they find online. A reputable pawnbroker will be licensed and experienced in giving loans for all sorts of different goods. High-quality pawn shops will also do their due diligence and give borrowers the most money possible for their items.
Visit Harrison Street Pawn today!
If you’re looking to pawn an item, come to our pawn shop right away. We offer the most money for your goods at low interest rates. Plus, we have a huge selection of guns, jewelry, tools and other merchandise if you’re looking to buy an item instead of pawning one.