26 May What is a Pawn Loan?
I have been asked this question many times over the years and I never get tired of answering it!
A Pawn loan or pledge as it’s called is just a low-value mortgage against an item of value simply its a collateral loan, how it works is that if you needed some quick cash you would take an item to a Pawnbroker, this could be for example a Watch, Jewellery, Laptop, Gaming console or any other item that has a value. The pawnbroker would then appraise the item and make an offer of a loan if you accepted the pawnbroker would then keep the item (Collateral) until you come back to collect it.
Simple! No application forms, No lengthy wait periods and No application fees
The great thing about this is that the pawnbroker is not interested in your credit score like the banks are, he doesn’t care if you have BAD CREDIT, GOOD CREDIT, OR NO CREDIT because he’s not lending on you he’s lending on the collateral.
And just like any other type of credit when it comes time to collect and repay the loan (pledge) there will most certainly redemption fees and the original loan to repay, But the great thing about a pawn loan this is that you’re not obligated to pay it back!
That’s right you can simply walk away unlike a bank or payday lender.
Can you imagine saying to the bank “I have decided not to pay you back” I am sure the bank would say see you in court Mr Customer!
So what happens if you don’t pay it back?
Well, the pawnbroker would just sell the item to recoup his investment plus the redemption fees, BUT it doesn’t end there if the pawnbroker sells it for more than you owe him you’re entitled to a percentage of the surplus from the sale a whopping 90%. So’ you’ve already had an advance and then there is a possibility that you will get more if it sells for a higher price.
Borrowing money from the banks and finance companies is getting harder because of Government Legislation.
This is the reason why more and more people are turning to a pawnbroker as an alternative lender of choice
So’ next time you need to borrow some money for a short period try a pawnbroker, better still try “Premier” we have our three Premier Pawnbroker Promises
1 WE WILL always give you a friendly welcome, treat you with respect and take great care of your item
2 WE AIM to offer the best deal and will beat any competitors
3 WE HAVE the most flexible pawnbroking product that allows you to pay weekly, fortnightly monthly or at the end of your contract, helping you get your item back.