Applying for a loan can be really scary for a lot of people, and big banks certainly don’t help in taking the edge off. If your credit score isn’t sky-high, if your history of debt isn’t squeaky clean, and if your income isn’t earth-shattering, banks have a way of making you feel so small; not worth their time, and certainly not worthy of a loan. So, how do you get a personal loan without being squeaky-clean by big bank standards? What if you have no credit? 

    Consider a collateral-backed loan acquired through a pawn shop. A collateral-backed loan simply means that you supply a valued item or asset to the lender (in this case, the pawn shop) in exchange for the loan. Once you pay back the loan, you get your item back. It’s that simple. And at most pawn shops you can get a collateral-backed pawn loan with no credit at all. Applying for a collateral-backed loan at a pawn shop is (unlike at major banks) a very straightforward process: it’s a no-stress, no-frills loan arrangement that gets you cash liquidity quickly. 

    So, what do you use as collateral? There’s a common misconception that you need to (or at the very least should) pawn gold as collateral, and it’s easy to see why: gold is very easy to value – there’s no debating what your gold is worth. But there are a lot of things that pawn shops will take as collateral in exchange for a loan. Valuable antiques like baseball cards or other vintage collectibles can be fairly easily appraised and can carry great value. Jewelry is also fairly easy to appraise. Or get creative: consider supplying tools, musical instruments, or even furniture pieces in exchange for a fast loan at your local pawn shop. You’d amazed at the value that some of these items can carry, and oftentimes going without them for a short amount of time while you pay back your loan just isn’t that big of a deal. 

    The collateral-backed pawn loan is a stellar option when you need fast cash, but be warned: it does come with a certain amount of risk. Before you jump at the opportunity, know that an inability to pay back your loan in the time allotted could result in forfeiture of the collateral. If you’re considering using a prized piece of jewelry or family heirloom as collateral, think very carefully about what it would mean (and how you would feel) if you did not pay back your loan and had to forfeit that beloved item.     Nevertheless, sometimes you need to take the risk and get that cash fast. If, for example, your car was to break down unexpectedly and need serious repair for you to get back on the road, you’d need to have cash (fast) in order to pay for that repair. You could use a collateral-backed loan to take care of the repair and pay it back slowly over time. Some pawn shops will even arrange with you to use the car itself as collateral, and even let you continue to drive it! You might also encounter unexpected injury or illness, and those healthcare bills can certainly add up. Cover your healthcare costs quickly with a collateral-backed loan from your neighborhood pawn shop. 

    No matter what your need is, the qualified folks at Cash Express Pawn Shop are here to help. Come talk to us about your loan needs and we’ll be happy to go over options and explore what a collateral-backed loan might look like for you.