Have you borrowed money from a friend, family member, or a bank before? There are many options you can choose from when borrowing money to cover your financial shortcomings. Apart from bank loans and borrowing from loved ones, one of the loan types other individuals consider is pawnshop loans.

 

People choose pawnshop loans, where pawnshops provide collateral-based loans. People who wish to borrow money must submit to the pawnbroker something they own that has value in exchange for instant cash. The pawnshop will keep that item until the borrower repays the loan.

 

Pawnshop loans are attractive to many people. This type of loan doesn’t involve a lengthy application process and a credit check, which is advantageous and convenient for someone with a poor credit score. As long as you have a valuable item you can leave as collateral, like jewelry or tech devices, and you can prove that you can repay the loan, the pawnshop will accommodate your request.

 

Below is an infographic that will break down the distinction between pawnshop loans vs. other loan types. Not all loan methods are ideal for any financial situation, so you have to assess your needs carefully and consider your options to choose the financing method that best fits your situation.