If you find yourself in a financial pinch and need money quickly you can get fast collateralized Loans at pawn shops. Unlike traditional lenders, you won’t have to go through credit check. Simply put a collateralized loan is a loan based on an item that you bring in that has some value. The reason that your credit rating isn’t important is because you are pledging something you own as security for the money that you are borrowing. When you repay the loans, together with the agreeded upon interest your property is returned to you. If you choose to not redeem or reclaim the collateral it becomes the property of the pawn shop and is usually sold in the retail part of the business. This makes the transaction a win-win situation.
Pawn brokers give you a free evaluation on the item you want to use as collateral and then they make you an offer to either buy the item or make you a loan based on that evaluated value. It is your choice whether or not you want to make the transaction. If you decide to take out a loan, you will have between 30 and 60 days to make the repayment and reclaim your item. The interest rates are lower than those from companies that make “payday loans.” If you need more time to make a complete repayment some pawn shops will let you renew the loan for an additional interest fee.
These days you can even see specialized pawn lenders on TV. They specialize in making loans on celebrity items. You local pawn shop will make loans on anything from personal jewelry to high-end electronics. Some pawn brokers make loans against your ownership in cars, trucks and even boats and RVs. A loan can be for as little as $5.00 or high as thousands of dollars. The great thing about pawn loans is that you can get the money you need immediately. There is no extended waiting time. They make you an offer and if you accept, you get the money just as soon as you sign the pawn agreement and deliver the collateral, no waiting.
