Pawn shops are thought of by many people as hubs for stolen goods. However, pawn shops don’t receive such items very often. In actuality, pawn shops offer an alternative form of financing that is different from the loans that banks, check-cashing spots, and other financial institutions offer to consumers. Let’s dig into the wide variety of benefits that pawn shops, when used correctly, can offer people whenever they do business the right way with these types of entities.
When You Seek Traditional Financing, Your Credit Report Is Negatively Affected
Whenever you check your credit score on sites like Credit Karma, you request soft pulls on your personal financial track record. Pulls is a financial term that refers to requests made by potential lenders, yourself, prospective employers, and everybody else under the Sun to look at the information that your credit report contains. If you seek out financing at banks, they will check out your background using hard pulls, requests that indicate you recently tried to secure financing. The more hard pulls you have racked up in the past few months to a year, the lower your credit score. Pawn shops aren’t interested in the information that credit reports contain.
You Can Get Cash Instantly With One Or More Pawn Shops’ Help
Traditional loans can take days just for initial applications to be processed. Actually receiving money can take up to a week after your application is processed, if not even longer than that! Although you can’t get very much money with pawn loans, pawn shops can help you get cash in the blink of an eye. Banks don’t offer this perk.
Interest Rates Aren’t Ridiculously High
Check-cashing joints and title loan providers offer flex loans, short-term loans that feature interest rates in the percentile range of hundreds across the time horizon of one, two, or four weeks.
Pawn shops are one of the most unique forms of widely-available financing in the United States. At our jewelry pawn shop forest park, we can provide you all of these benefits, plus many more.