Being short on cash can be more than just inconvenient. If you believe you have tried everything to scrape up enough cash to pay the bills this month, but have still fallen short – we have one more option for you.
What is a Collateral Loan?
A collateral loan, also known as a pawn loan, is relatively simple. You bring an item of value to your pawn shop. A specialist then assesses and evaluate your item to determine the value. If you agree to the terms and amount, the pawn shop will hold onto your collateral item and issue you the cash. While every pawn shop varies based on state laws, most collateral loans offer 30 to 90 days for repayment. (Some may even allow you to extend this time period.)
What Can Be Used as a Collateral Loan?
Anything of value can be used for a collateral loan. This includes jewelry, electronics, instruments and much more. In short, if it holds value on today’s market, a pawn loan is possible.
Often, bank loans and other types of financial assistance from large corporations come with steep interest rates and fees. Not so with a collateral loan. How are interest rates and fees calculated for pawn loans? First, it is important to understand that a collateral loan is typically considered a small, short-term loan. As such, lenders typically have reasonable transaction fees. In addition, most pawn shops do not charge a varied interest rate. Instead, they will have a set monthly loan fee. That means your collateral loan has no hidden charges, no accrued interest and provides a reasonable amount of time to reclaim your property.
Why Pawn Brokers Exchange is the Place to Go
The advantages of pawn loans are clear. Regardless of credit, you are able to have money today. All you need is an item of value.
If you are looking for pawn shops in Salt Lake City, UT, Pawn Brokers Exchange should be your go-to destination. With experience, knowledge and a personal desire to help our community members when they need it most – the loan specialists at Pawn Brokers Exchange offer you the best value possible on your items. Do you want to learn more about collateral loans at Pawn Brokers Exchange? Contact us today.