Best Way To Borrow Money With No Credit Check No Employment Check
Pawnshop loans are one of the best way to instantly borrow money with no credit check, no checking account, no employment verification etc. As long as you have something of value to put up as collateral, pawnshops and pawnbrokers are willing to offer you a loan on the spot guaranteed even when you are jobless with no income. Like other types of personal loans, you need to understand the advantages and disadvantages of no hassle pawnshop loans before getting one. You may find that it is indeed the best way to get a instant decision personal loan for bad credit, or there are better options for you.
There are around 15000 pawnshops operating throughout the nation and the biggest pawnshop chains include Cash America International, Express Cash, EZ Pawn, Famous Pawn, First Cash Pawn etc. They are even more common compared to credit unions or banks, so it is easy to find a local pawnbroker for instant cash loans with bad credit.
Getting a pawnshop loan is actually very direct and no hassle transaction. You bring in items of value such as jewelry, electrical appliances, cell phones, car title etc to the pawnshop and the in house appraiser will determine the fair market value of your items and then give you a quote for the maximum amount you can borrow against your pledged collateral, the loan term and interest rates. When the offered loan is too low, you can negotiate for a higher loan but make sure you can pay it back. The more you borrow, the more difficult it is to redeem the item due to the increased interest due.
If it is acceptable, you hand over the item and receive the cash and a pawn ticket printed with your name/address, description of your pawned item, loan amount, rates and maturity date. A copy of this receipt will also be forwarded to local police for recording purposes.
Typically, personal pawnshop loans are short term over 30 days although you can extend the loan indefinitely by paying only the interest due at each maturity date. Check to make sure your state allows pawnshop loans to be rolled over or extended. When you are able to make a full payment plus interest, you can get back your pawned item. When you do not pay back in time nor extend the loan by paying just the interest, the pawnbroker can legally appropriate the item to cancel off the debt. This means you cannot get back your pawned possession but you no longer owe the pawnshop any money as well. That makes legitimate pawnbroker loans recommended for unemployment since you have no income and you cannot get into risky debts.
So Should You Get A Pawnshop Loan For Bad Credit?
When you need money within a few minutes, some pawnbrokers are open 24 hours every day even during public holidays. It is quick and no hassle – no credit check is required, no need to show employment records or pay stubs, no checking account is needed to receive the money. You can opt to receive the loan in cash or a check. even when you have very bad credit, you can still apply for guaranteed approval pawnshop loan in 1 hour. When you cannot pay back the borrowed money, your credit history is not affected since pawnbrokers do not report to the credit monitoring agencies. You will not get debt collectors or harassing calls that disturb you at home or workplace for reminding you to pay up because you will not be in debt. The worst case is losing your collateral.
Do not expect to borrow up to 100% of your pawned item’s market value. Pawnbrokers will deliberately offer very low appraisals compared to the true value of your collateral. Furthermore, they will only loan between 30% to 50% of that appraised value in order to protect themselves from liquidity issues when trying to resell the item. For example, if you pawn a $1000 gold jewelry, you may only get a $100 loan from the pawnbroker. This is because jewelry is appraised at wholesale value, licensed guns can get up to 60% of the blue book value, electrical appliances are even worth less than 30% of the original price you paid for them.
Pawnshop lending rules are governed by each state’s usury laws but still, some pawnshop loans charge APR of 130% – 300%. There are also miscellaneous fees involved for item storage, insurance etc. This may also apply every time you extend a loan by paying the interest portion due. You may end up having to pay over $3000 just to claim back a sentimental possession valued at $1000, depending on the loan term you chose.
When you have no bank account, no credit, approaching the pawnshop for a loan is not a bad idea especially when you do not want to take any risk of sinking into debts or damaging your credit history. For example, a bad credit payday loan has very high APR and your debts continue to snowball making it more and more difficult to pay off in full. In the case of a pawn shop loan, your debt is canceled when you do not pay back or renew the loan. Thus, we recommend legit pawnshop loans for unemployed people since they are less risky.