In recent years, the pawnbroker has become one of the most convenient places to secure short term loans. Better still, choosing the right online pawnbroker could mean finding the quick, affordable loan you need.
When we think of pawnbrokers, it’s hard not to conjure up the stereotype of dingy shops and dusty shelves – but now a new generation of online pawnbrokers is tackling that misconception head on.
Pawnbroking these days is more about professional websites, industry regulation, business savvy and simple, easy ways for people to borrow money – safely.
They’re also getting a boost thanks to the tough economic climate. Because credit is harder to come by, more people are turning to the valuables and assets around their homes as collateral for secured loans from no-fuss pawnbrokers.
But what other advantages does using a pawnbroker have?
We highlight four great reasons why using a pawnbroker could be your best option if you need cash in a hurry.
1. A pawnbroker won’t do a credit-check
The amount of money a pawnbroker will agree to lend you will be based on the value of the items you put up as collateral. And because your valuables are used as security, a pawnbroker doesn’t need to perform a credit check when advancing you money.
This makes pawnbrokers a great resource if you have a poor or limited credit history, especially if multiple credit checks or failed applications for credit have actually lowered your credit score – and made it more difficult for you to borrow from traditional lenders.
So if you choose a pawnbroker instead of risking credit applications that are unlikely to succeed, you can have your loan and rebuild your credit score – a win-win situation.
2. You can borrow against a wide range of items
While a bank requires property as collateral for a second mortgage, pawnbrokers are much more flexible and can offer both small and large short term loans on a wide variety of valuables and assets.
3. Your items will be professionally valued
With online pawnbrokers like Borro.com, valuation is free – and they’ll pay for the postage and packaging or even come and see you if your items are of a particularly high value.
Your assets will receive an immediate, professional valuation by a team of experts, making sure you get the right loan for your valuables. And thanks to the pawnbrokers’ market knowledge, whether for art, gold, antiques or other items, you may well get a larger loan than you hoped for.
So if you don’t know how much your valuables could raise, find out free and without any obligation.
4. There’s no penalty for early repayment
The flexibility of their short term loans is one of the major advantages pawnbrokers offer over unsecured loans from many traditional lenders.
With a short term loan from a pawnbroker, interest is quoted monthly – making it more expensive over the short term than an unsecured loan with an annual rate. At the same time, however, most pawnbrokers won’t levy an additional fee for early repayment. Compared to a 5- to 7-year repayment period for an unsecured loan, this can make a pawnbroker loan less expensive if you intend to repay it quickly.
With Borro, you’ll pay 4.99% per month for loans under £10,000, falling to just 2.99% for loans over £100,000 – and you can borrow up to a million pounds against high-value art and sculpture.
What’s more, if you’re not able to pay back your loan and your valuables are sold, you can be refunded the amount they fetch above asking price.
So don’t just let your jewellery, antiques and heirlooms gather dust. Put them to work for you today and find out how using a pawnbroker can help you manage your finances.