Pawnshop Loan Vs Instant Cash Advance
Both of these options work well for borrowers with bad credit, as neither of them requires a credit check.
Life is not always easy, and sometimes everyone faces financial difficulties and needs funding. If you need a small amount, you are probably considering options like Pawnshop Loan and Payday Cash Advance. However, what is the difference and how do you choose the most suitable option for yourself? Keep reading for more details.
How Do Pawnshop Loans And Cash Advances Work?
|Pawnshop Loan is a simple secured type of financing that helps borrowers in difficult life situations to quickly receive money to cover their needs. Secured loans require collateral. In the case of Pawnshop Loans, this can be art, jewelry, electronics, and more. Thus, the loan amount you can get will depend on the value of the collateral provided and the laws of the state where you live. It is also important to note that if you fail to repay the debt on time, you risk losing collateral so that pawnshop can consolidate the loan debt. The terms of repayment of such a loan most often vary from 30 days to several months.||Cash Advance is a simple, unsecured loan, which means you don't have to provide collateral or risk your assets to get your funding application approved. You can get financing online or offline and must repay the loan on your next payday (often within 14-21 days). Loan amounts often range from $100 to $1,000. Applications for this type of funding are approved as quickly as possible.|
- Pawnshop Loans often have low interest rates because the loan is secured. Thus, the lender has a kind of guarantee that the debt will be paid on time. So interest rates typically range from 5% to 25%. However, remember that in case of non-payment of the debt on time, you risk losing your collateral.
- Cash Advances differ from Pawnshop Loans in higher interest rates. Since this loan is not secured by collateral, lenders compensate for their risks with high fees. Most often, you will have to pay between $15 and $30 for every $100. If you fail to pay your debt on time, you will face additional fees and charges.
Read more: Direct Lenders Payday Loans
- Applying for a Pawnshop Loan is quite simple. All you need is to bring a deposit to the pawnshop so that the specialist can estimate its value. Once this is done, you will need to provide proof of identity and complete some paperwork. After that, you can get cash on the same day and manage your finances as you see fit.
- Getting Cash Advance is also quite easy now, as you can fill out an application for funding both online and offline. It is important to note that Pawnshop Loan does not have a completely online application. You will need to provide basic information about you, after which you can get approved almost instantly. The loan amount will be transferred to your bank account within one business day in the case of an online application.
Read more: Same day Payday Loans Online
The Fastest Turnaround
- Pawnshop Loan won't take you more than 10 minutes. You just need to wait for your collateral to be assessed, after which you will need to fill out the minimum paperwork and you will be able to receive cash on the same day. No credit check required. However, remember that you will need to spend some time looking for a lender near you, as well as driving to the pawnshop.
- Cash Advance is also as simple as possible and online application does not take more than 5-15 minutes. However, unlike the Pawnshop Loan, you will need to meet the selected lender's minimum eligibility criteria in order for your funding application to be approved. This includes age, income, citizenship, and more. However, a credit check is also not required, so getting financing is fairly easy. If your application is approved, you will be able to receive funding within one business day.