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Four Things You Need to Consider Before Taking Out a Pawn Loan

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06 JUNE 2019

Four Things You Need to Consider Before Taking Out a Pawn Loan

Sometimes we need a little extra money right away. If your wallet is feeling a bit too thin and it needs some bulking, a pawn loan could be the perfect solution! If you have items in your home that you’d like to leverage for some money, be it to help cover some burdensome bills or make a purchase you can’t miss, you can use that item to get the loan you need!

Before you take out your helpful pawn loan, however, it’s important to keep a few things in mind. Continue reading to learn four important factors to consider before you take out your pawn loan.

First off - what are Pawn Loans?

Pawn loans are short-term, secured loans that provide fast cash in exchange for an item held by your lender as collateral.

Pawn loans are usually relatively small (Superloans’ standard pawn loans are typically only a few hundred dollars) and offer short-term payment terms (your Superloans lender will determine your payment terms based on your current circumstances but they are typically between 2-4 months). The rest is simple; If you pay back your pawn loan on time, you get your item back! Because the collateral you used to secure your loan can be considered a loan payment, your pawn loan will not damage your credit score if you struggle to make your payments (though you may end up forfeiting your pawned item).

What to consider when taking out a pawn loan

  1. Is your item eligible for a pawn loan? – Be sure to check your lender’s list of acceptable items for pawn loans. These items might include sports equipment, home entertainment items, photography gear, and automotive accessories. Any decent pawn shop won’t want to do business with valueless items, so be sure that your item will earn you the cash you need.
  2. Do you have a plan to pay off the loan quickly? – Pawn loans have a relatively rapid turnaround compared to some other loans. Before you pawn your item, it is important that you have a plan to repay the loan within the designated repayment window. If you do struggle to make your loan payments or if another unexpected financial emergency pops up, you can extend the payment period on your loan for an extra interest charge.
  3. Can you part with the item during repayment? – Your personal lender wants you to pay your loan. That’s the best-case scenario for both parties. But it is important to remember that you will still be without your pawned item while you pay back your loan. Make sure that your item is something you can part with for that time.
  4. Is what you need your loan for worth what you’re pawning? – By taking out a pawn loan, you’re leveraging your valued item against what you need the money for. If you need the cash for an overdue bill payment, this decision might be easy. After all, a second power-drill is hardly worth more than the pain of having your power cut! Either way, it is important to make sure that your loan is absolutely necessary, and that you value what you need your pawn loan cash for more than what you’ve decided to pawn.

Get a great value for your pawn loan from Superloans!

If you need fast cash from a pawn loan, the experts at Superloans can provide a fair valuation of your item at a competitive rate. Our process is fast and simple. Get the cash you need in fifteen minutes or less! Your expenses can’t always wait. You shouldn’t either. Contact Superloans today to learn more about our amazing pawn loans.

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