What Can I Use as Collateral for a Pawn Loan?
A pawn loan is a type of collateral loan granted by pawn shops like Greenbrier Pawn here in Chesapeake. If you have never taken out a pawnshop loan, you might be confused about what the collateral requirements are. When you think about a collateral-based loan, you might think about a mortgage payment or car loan. These are also collateral loans, but we operate a little differently. Basically, bring in collateral that you can bring to our shop, like a piece of gold jewelry or a couple of musical instruments. Then, you can get a no credit check personal loan, which can be highly useful when you're in need of quick cash and want to avoid payday loans or using a credit card.
Why Do I Need Collateral for a Pawn Loan?
First, you could be wondering why you need collateral for a pawn loan. Think about it like this. Our goal is to offer loans to everyone, regardless of credit score. We don't care about bad credit, employment history, income, or even whether or not you have a bank account.
In order to offer our loans to as many people as possible, without strict lending requirements, we have to protect ourselves. When you bring high-value items in for us to hold until you repay your loan, we are protected.
This helps both us and you. It helps customers because, again, it allows us to offer a loan that suits your financial needs, regardless of poor credit or other risks. Sometimes people need a second chance, and you can get it at our pawn store. It also helps us, since we make a little bit in interest charges (in accordance with state laws), and our risk is low due to the collateral requirement. It's a win-win for everyone.
What Does Greenbrier Pawn Take for a Pawn Loan?
Are you wondering what you can use as collateral for a short-term loan from a pawn shop? Chances are good that you have multiple items around your home that can be used for a typical pawn loan.
At Greenbrier Pawn, as you might have noticed, jewelry is our top priority. Because of this, we are always interested in both buying unwanted jewelry and making loans on jewelry. This includes gold jewelry, silver jewelry, diamond jewelry, designer jewelry, and so on.
Although jewelry is our main focus, as a pawn broker, we do offer our collateral-based loans on other items of value, too. This includes video games and consoles, power tools, sporting goods, and so on. If you're wondering if your type of item of value is something you can use for an average pawn shop loan, you can call us or bring it in for us to take a look at.
What Should I Consider When Choosing Collateral for a Pawn Loan?
Since we take so many different items of value, you could be wondering what you should bring in. There are a few things to consider. First, consider the item's value. If you're only interested in small loan amounts, you likely have a variety of items that can be used. If you're seeking a bigger loan in cash today, you'll need to either bring in multiple items or one of your more valuable items, like a piece of fine diamond jewelry or a luxury watch. You can bring in a few items if you want, and we'll consider the value of the stuff and make you a loan offer, if this makes your decision a little easier.
You should also remember that if you don't repay your loan, you will lose your collateral. Therefore, if you aren't completely sure you'll be able to repay the loan, it's a good idea to avoid bringing in a family heirloom or another item with sentimental value, just in case. Also remember that you will have to leave your personal property with us until you repay your loan, so you'll want to avoid bringing a special item that you use daily. Instead, make sure you bring something in that you can do without for a few weeks, until your loan is repaid. Then, you can get the extra money you need without missing your item too much in the meantime.
As you can see, we accept a variety of different items of value for our pawn loans. If you have questions, give us a call, and we'll be more than happy to chat with you about your collateral options. Call us at 757-382-9066 today, or stop by and chat with our knowledgeable and helpful staff! We have decades of experience with helping people borrow money the fast and easy way, and we're looking forward to helping you out!