We are often asked about the difference in a payday loan or a pawn loan.
Let us examine how both work.
Payday loans work off a future promise of payment (when you get your paycheck), not off anything of actual value. This leaves you very vulnerable for three reasons.
First: If you happen to miss your payment, payday loan places might come after your personal banking account directly. Often you are required to leave a voided check precisely so they can possibly empty your bank account (without notice) if you don’t make your payment in time. This can obviously leave you in a tight spot.
Second: If you happen to be unable to pay the loan off in the terms demanded, the payday loan might directly impact your credit score. In short, you risk destroying your whole credit whenever you get a payday loan.
Third: Many payday loan places are actually part of a large corporate chain. This means many of them have a dedicated team of national lawyers whose sole job is to make sure they get as much money out of you as possible the moment you default on a loan.
In summary, if you ever run into trouble and cannot uphold the payday loan terms (ill timed engine trouble, speeding ticket, getting sick) you are looking potentially of getting your money withdrawn directly from your account, destroying your credit score, going to court and paying lawyer fees.
There is a better way.
If you have anything of value, a pawn loan keeps all the risk in the actual item you pawn. This means if you happen to not be able to pay us anything in the 90 days we give you, the worst thing that happens is you lose your item of value. If you default on a pawn loan, we will not and cannot withdraw money from your bank account, touch your credit score, or send a team of lawyers after you.
Finally, we charge 10% interest every thirty days and give you 90 days. Many payday loans charge more interest, and only give you a week or two to pay back the loan.
The choice is really simple. If you own something of value – get quick cash loan without risking ruining your future.