Get a Pawn Shop Loan are a popular financial solution for individuals who require quick cash and do not meet the criteria to receive a personal loan from a bank or credit union. Oftentimes, pawn shops offer higher cash offers than traditional banks or other lenders, especially for gold, silver and certain electronics. This allows individuals with a poor credit history to access emergency funds. The loan process is simple and straightforward; simply bring in your item(s) of value, get a quote and agree to the terms.

The biggest downside to a Fast Pawn Loan is high interest rates and the risk of losing valuable items. The amount of money you will pay back to the pawn shop in addition to the initial pawning fee is dependent on the item’s resale value and provincial regulations. In general, pawnshops will charge between 25% and 50% of the expected resale value, plus a storage fee.

How to Find Trusted Pawn Shops in Your Area

In addition, a pawnshop loan will only benefit your credit score if you repay the full amount within the specified repayment period. If you don’t, the pawnshop will forfeit the item and will sell it to another customer for the same price you originally paid.

Despite the high interest rate and risk of losing your item, Fast Pawn Loans have their place in an emergency financial crisis. However, a more responsible option is to use an overdraft protection service available with your chequing account or obtain a line of credit from your bank. The interest rate on a personal loan or line of credit is much lower than the pawnshop’s and will not impact your credit score.