Payday Loans vs. Pawn Shop Loans
As you might know, there are many ways to borrow money. Two popular financial products for people who need quick cash are payday loans and pawn shop loans. You don’t have to go through standard financial institutions to take out these loans, which can be a good thing if you have credit difficulties. If you’re dealing with a financial crisis or are just wondering how you can get some fast cash for unexpected expenses, this guide can help you learn about these short-term loan options so you can take out the right loan for you.
Payday Loans
When searching for a way to get fast cash, you might have come across online payday lenders. You might have even noticed a storefront payday lender when running errands, and you might have wondered if this might be the right financial solution for you when you need quick cash. Before taking out a payday cash advance, it’s smart to learn a little more about them. Once you do, you may decide that taking out a pawn shop loan from a shop like Greenbrier Pawn will actually be the better choice to cover your financial needs.
What Are Payday Loans?
Also known as payday advances and cash advance loans, payday loans are short-term loans that allow you to borrow against a future deposit in your checking account. Typically, you will be loaned money until you receive your next paycheck. Then, the loan amount plus the finance charge and any additional fees will be taken out of your checking account on the agreed-upon date. This is usually on your regular payday, although you might be able to negotiate a different payment date, depending on the lender that you work with.
Pros of Payday Loans
Many people rely on payday loans and consider them to be a good way to get quick cash. These are some of the advantages of these financial products:
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A full credit check often isn’t required, and many companies that offer payday advances loan to people who have a poor credit score.
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Once your application is approved, you can often have the loan money deposited into your checking account in just a day or two.
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In many places, there are storefront payday loan shops you can visit if you feel more comfortable talking to someone in person. However, there are also online options that can be a bit more convenient.
Cons of Payday Loans
Even though payday loans do have their benefits, there are a lot of downsides of these loans that you should be aware of. These are some of the disadvantages of taking out a payday loan:
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Even though payday lenders typically work with people who have less than perfect credit, they may still conduct a credit check. This means you could be turned down for a low score. There’s also the possibility that your credit score could be affected if the payday lender does a hard pull on your credit.
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You typically have to have a steady job and income to qualify for a payday loan. If you’re self-employed or do gig work, you may not qualify. If you don’t have a certain monthly income, you might get turned down.
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Even though many payday lenders do transfer funds quickly, you may have to wait a day or more to receive the funds. If you’re in a financial crisis, you might not have time to wait.
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Many states have strict laws about payday loans. Therefore, payday loans may not be allowed in your state. Many states do not allow these loans specifically because they violate usury laws and are considered to use predatory practices.
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Many people find they fall into a debt trap when they take out payday loans because of the high interest rates. The annual percentage rates on these loans are often incredibly high. Late fees and additional fees can drive up the cost of these loans even more. These costs are often higher than even the most predatory credit cards. You may find that you have to repay a lot more than you borrowed if you take out one of these loans. It’s important to keep these things in mind if you want to avoid potentially putting yourself in an even worse financial situation.
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Typically, payday loans are for relatively small amounts. The amount you can borrow depends on your income and the lender you borrow from.
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If you default on your loan, your debt could be sent to collections, and/or a negative entry might be put on your credit report. This can affect you for seven years and can cause your credit score to plummet.
Pawn Shop Loans
Pawnbrokers offer a variety of services. You might know that you can go to a pawn shop if you want to sell unwanted gold or gold jewelry, diamond jewelry, Silver jewelry, silver or gold coins, musical instruments, power tools, electronics, video games, and more. You might have visited a pawn shop a time or two to purchase used items at rock-bottom prices. What you might not know, though, is that pawn shops also offer pawnshop loans. If you’re looking for a cash loan, you may want to consider a pawn shop as an alternative to a loan from an online payday lender or storefront payday lender.
What Are Pawn Shop Loans?
Pawn shop loans are a little different from payday advances. Similar to title loans, the loans that pawnbrokers grant are collateral loans. If you’re looking to borrow money the easy way, you’ll probably find that a payday loan is a hassle-free way to get the cash you need.
With pawn shop loans, you visit a local pawn shop with items of value in tow. These items are held by the pawn shop as collateral, and a cash loan is granted. You’ll be told how much you have to repay, and you’ll then leave with the cash in hand. When you’re ready to pay your loan back and retrieve your collateral, you simply visit the shop and do so. As long as you pay your loan back during the loan period, you do not have to worry about anything happening to your collateral.
Pros of Pawn Shop Loans
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You don’t have to worry about a pawn shop ever doing a credit check. Whether you have a bad credit score or no credit, you won’t get turned down for a loan at pawn shops like Greenbrier Pawn. You also don’t have to worry about your credit being affected by a “hard pull.”
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There is no application process, so you don’t have to worry about filling out a bunch of paperwork or waiting for your application to be approved. All you have to do is show your collateral items and provide your ID.
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You can borrow as much or as little as you want, depending on your collateral. If you have valuable items or bring in multiple items for collateral, you may be able to borrow quite a bit more than you would be able to borrow from a payday lender.
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You will be given cash on the spot. There is no waiting period, and you don’t have to have a bank account to have the money deposited into.
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You don’t have to worry about anything bad happening if you default on your loan. Instead, you’ll simply lose your collateral. You don’t have to worry about the pawn shop sending your loan to collections, reporting negatively on your credit, calling you or sending letters in the mail asking for payment, or other issues.
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Pawn loans are allowed in all states, unlike payday loans.
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Pawn loans are regulated by state law, so you don’t have to worry about being charged unexpected fees. Instead, no matter what pawn shop you visit in your state, you won’t be charged more than a certain amount, and the terms of the loan should be the same.
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Although pawnbrokers do have to make a profit off of these loans, costs are typically much lower than with payday loans. This means that choosing a pawn shop loan instead of a payday loan could save you money and prevent you from putting yourself in a worse financial situation.
Cons of Pawn Shop Loans
Overall, many people find pawn shop loans to be useful. You may find this is the best way to borrow money. As is the case with anything, though, there are some cons you should be aware of.
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You cannot borrow money online when working with a pawnbroker. Instead, you will have to visit a local pawn shop in person. Luckily, if you’re in Chesapeake, you’re sure to find Greenbrier Pawn to be a convenient stop. Alternatively, you can visit Hilltop Pawn Shop if you’re in Virginia Beach, since it’s our sister store.
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You do have to have collateral, or you will not be able to take out a loan.
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If you don’t repay your loan, you will lose your collateral. Because of this, you should avoid using sentimental or important items as collateral unless you’re sure you will be able to repay the loan.
Where to Take Out a Pawn Shop Loan
Any pawn shop should be able to grant you a pawn shop loan. This doesn’t mean you should go just anywhere, though. Instead, you’ll want to choose a reputable pawn shop. You’ll want to choose a shop that is known for accepting a wide variety of items as collateral, since this increases your chances of getting your loan approved. You’ll also want to choose a conveniently located pawn shop that offers high loan amounts, if applicable.
Luckily, you have options. If you’re in Chesapeake, stop by Greenbrier Pawn Shop. We have decades of experience. We accept all items of value for loans, and we grant loans from $5 to $50,000. Call us today and we can discuss your best option on personal loans.
If you’re in Virginia Beach, you can also check out our sister store, Hilltop Pawn Shop & Jewelry.
Why Take Out a Pawn Shop Loan?
You don’t have to have a reason to take out a loan from Greenbrier Pawn. We won’t even ask why you want to borrow the money. However, you could be wondering about some of the reasons why people take out these loans. These are just some of the things you can do with the money that you borrow from Greenbrier Pawn:
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Take a vacation.
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Avoid being charged an overdraft fee for insufficient funds in your bank account.
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Get some spending cash to get you by until payday.
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Get caught up on bills.
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Pay for holiday expenses.
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Take care of a medical bills, car repair bill, or other unexpected expense that might have popped up.
Tips for Taking Out Pawn Shop Loans
If it’s your first time taking out a pawn shop loan -- or if you’re just hoping that everything will go as smoothly as possible -- you might be looking for a little advice. These tips for success should help.
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According to Chesapeake and Virginia state laws, pawnbrokers are required to verify the identity of anyone who uses these services. Therefore, you’ll need to bring your driver’s license or other government-issued ID when taking out a pawn loan.
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To ensure you’re granted the highest loan amount possible based off of your collateral, make sure you visit a pawn shop that has a good reputation and knowledgeable staff. A pawn shop owner who has been in the pawn industry for a long time will know the true value of your items and will want to offer you the maximum loan amount for quality goods.
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Pay attention to the interest charges and due date for your loan. Then, you’ll know how much you’ll need to bring to retrieve your collateral, and you can make sure you get your loan paid on time. All this will be listed on the loan agreement.
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Don’t be afraid to bring in a variety of items. The total value of your items will be considered when your loan is granted. You can bring video game consoles, video games, televisions, gold jewelry, diamond jewelry, musical instruments, and all sorts of other items of value.
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Keep the pawn ticket that you’re given at the time that the loan is granted. Even though the pawnbroker should be able to look up your loan even if you don’t have it, you can speed things up on the day you repay your loan if you have it.
Do Pawn Shops Do Payday Loans?
If you're wondering, "Do pawn shops do payday loans?" you should know the answer is no. What we offer is actually better. If you visit our pawn shop in Chesapeake VA, you can take out one of our pawnshop loans. There's no reason to look for pawn shop payday loans near me when you actually have a much better option. Are you curious about "What is a pawn shop loan?" Don't worry. Our staff will walk you through the process and answer your questions. It's very easy!
Pawn Shops That Do Payday Loans
If you're looking for pawn shops that do payday loans, you should know there is no such thing. This doesn't mean you shouldn't look for a pawn shop in Chesapeake VA when you need to borrow money, though. Our pawn shop loans are actually much better. What is a pawn shop loan? If you're looking for pawn shop payday loans near me, come see us, and we'll explain everything to you. They're simply collateral loans with no credit checks, and they're fast and easy!Due to the nature of these loans, you can't get pawn shop loans online, but visit our convenient location, and we'll get you in and out in no time.
Chesapeake Pawn Loans Greenbrier Pawn Shop and Jewelry
Virginia Beach Pawn Loans Hilltop Pawn Shop and Jewelry
A Glenda Craddock Pawn Shop
A Family Owned and Run Business
Stop in to Greenbrier Pawn Shop & Jewelry and feel free to ask for our Daughter Nina who runs the store. In Virginia Beach visit Hilltop Pawn Shop and ask for our Son Dane