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Pawn Loans: The Pros and Cons

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23 AUGUST 2023

Pawn Loans: The Pros and Cons

Many of us have heard the term Pawn Loan and have a picture of what it is and how it works, but if you are new to our world, welcome! So, what is a Pawn Loan? In short, a Pawn Loan is a secured loan borrowed against an item of value and that item is safely stored until the loan is repaid.

Before signing the dotted line, it’s important to consider both the pros and the cons involved in taking out a Pawn Loan – and that’s where we come in! Let’s take a look and help you decide if a Pawn Loan with Superloans is the right loan for you.

What’re the pros?

  • Your first loan is free! Whether you decide to take out a Pawn Loan or an Express Loan with us, your first loan up to $500 is interest free!
  • Application is a breeze – borrowing against an item of security (or collateral) waves the need for a credit check, so you can be walking out with the cash in hand in less than 15 minutes.
  • You’re not limited to one loan at a time – not only can you take out multiple Pawn Loans at a time, but you’re not bound to redeeming your loans in order of when they were processed.
  • There’s no stress of hidden costs or fees – not everyone’s a fan of surprises, especially when they come at a cost. With just a fixed monthly interest charge, we make sure your loan costs are clearly outlined before you walk away with the cash.
  • You’re in control of your repayments – whether you want to make part payments or repay in full, is entirely up to you. There’s no structured repayment schedule and with access to the My Superloans app, making those payments is easier than ever!

What’re the cons?

  • As we mentioned in our pros a credit check isn’t required for a Pawn Loan which does mean for those looking to grow or repair their credit, a secured loan isn’t going to be the one to help do that. That’s not to say we don’t help with credit repair though – our Express Loan could be just the thing to kickstart your credit repair journey.
  • While you don’t have to sell your goods, it’s important to remember that you do put your goods at potential risk of sale. Pawn Loans are secured by the item you use as collateral which means if that loan isn’t repaid and our attempts to contact you prove unsuccessful, your item will go to auction in an effort to recover the costs.

Sometimes when the washing machine goes off the frits or that bill comes through a bit steeper than expected, the cash you need isn’t always ready and waiting – but we are ready to help and with over 20 years in the business, fancy ourselves self-appointed pawn experts. Contact us or come see one of our friendly teams in store with an item of security to get the money you need, today!

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