subject: Payday Loan Versus Pawning [print this page] When you don't have enough money to make it to payday, your options are quite limited to get the money you need. Borrowing from friends or family is an option but they might not have it to give you anyway.
And if you've ever had experience with borrowing money from friends or family, you might know that it can put strain on the relationship. A lot of people will turn to a pawn shop when they need money quickly, and others go to payday lenders.
There are benefits to both both types of options, but a payday loan may be the better choice for you. This article discusses why you might consider a payday loan versus a pawn dealer.
Payday loans are actually more convenient. You can apply for payday advances at any time of day from your computer. You can get a payday loan in your pajamas.
If you go to the pawn shop, you have to get dressed and drive to the pawn shop. When your loan is due, you have to drive back to the pawn shop to recover your pawned item and pay the bill.
There is not collateral needed with a payday loan. When you get this loan, your job is your collateral. No need to give up your X-Box or television until you pay your loan off.
You don't have to risk your grandma's wedding ring either. As long as you have a job and a checking account, payday loans can get you fast money without handing over your things.
You can get a smaller or bigger loan than the value of your collateral item. Pawn shops have to make money. One of the ways that pawn shops make money is by selling the items that people have pawned but never could pay to reclaim.
When they appraise the item that you bring in, the pawn shop will not give you the full value of your item. They will need to sell it for a higher price than they paid for it. Additionally, it costs money to store the item that is being held for you.
Since you are not dealing with collateral when you get a payday loan, you don't have to worry about how much the pawn shop owner is willing to give you.
There is no proving that you are not a thief! Unfortunately, thieves used to use pawn shops to get rid of their stolen goods. Most states now regulate pawn shops to prevent this practice.
Pawn shops usually have to turn over the item information, including the serial numbers, to the police in order to prevent theft.
Although there are confidentiality laws in place, you may feel uncomfortable with having to prove that you are honest. With a payday loan, you don't need to give any information about the things that you own.
There is no need to haggle. At a pawn shop, the broker will probably try to loan you a low price for your stuff. If you need a little more money than is being offered, you will have to have another item to pawn or haggle for the difference.
With a payday loan, you can get the amount that you need, and you don't have to haggle for it. Just indicate the amount you need when you take out the payday loan.
When you pawn an item, the pawn shop will give you a pawn ticket. You will use this to reclaim your item when you pay back your loan.
You will need to keep your pawn ticket in a safe place. While pawn shop brokers will keep your information for their records, they may charge you extra money if you lose your pawn shop ticket.
With a payday loan, there are no pawn tickets to keep track of. Payday loans don't include extra fees. In general, when you take out a payday loan, you pay a set amount of interest for the amount of money that you borrow.
At a pawn shop, not only do you need to pay the interest on the item that you are pawning, but you might also be charged additional fees. These fees are often necessary to pay for someone to appraise your item, submit the information about your item to the police database, and store your item.
