If you are in need of some extra cash right away, pawning you jewelry can allow you to get the money you need in just a matter of minute. However, before you rush out to the nearest pawnshop, there are a few facts that you should know.
Pawnshop Loans Are Short Term Loans
Pawnshop loans are only intended to provide you with an influx of cash for a short period of time. In most cases, these loans will need to be paid back within a few weeks if you wish to avoid the loss of your collateral. However, you should also know that some pawnshops will allow you to obtain a one time extension on your original loan by paying a fee. This fee is usually equal to the financing fees associated with your loan. For instance, if you received a $100 loan for your jewelry and are required to pay back $120, you would need to pay the $20 in order to secure an extension. Just be aware that you will still be required to pay back the full $120 in order to satisfy the loan and get your jewelry back.
Pawnshops Offer You The Ability To Pawn Or Sell Your Items
In addition to offering loans on the value of your collateral, pawnshops will offer you the ability to sell your jewelry outright. In fact, most pawnshops prefer to purchase these products outright because it allows them to put the products on their shelves for sale immediately rather than waiting until the end of your loan term.
If you know that you will not be able to repay your pawnshop loan, you may wish to consider simply selling your items outright. In many cases, you will find that this allows you to get slightly more for your jewelry, as pawnshop owners are often willing to pay a slightly higher price for items they can turn around and sell the same day rather than waiting for these items to be claimed or forfeited at the end of their loan term.
Pawnshop Loans Will Not Impact Your Credit
One of the reasons that many people choose to turn to pawnshop loans in their time of need is that these short term loans do not require them to submit to a credit check. This is because, rather than relying on credit scores, pawnshops rely on collateral in order to determine creditworthiness. There are a few other short term loan products that work in this same way, such as payday and auto title loans. However, there is one key difference between pawnshop loans and these other short term loan options. This difference is the fact that pawnshop loans will never impact your credit, even if you fail to repay the loan.
For more information about pawnshop loans, contact a company like Woodland Money Loan.