The How’s and Why’s of Getting a Personal Loan

The How’s and Why’s of Getting a Personal Loan

If you need some fast cash to cover an unexpected expense or to catch up on some bills, a personal loan might be the answer for you. However, not all personal loans are created equal. Keep reading to find out more about personal loans, and why a pawn loan might be a good idea for many people.

What is a personal loan?

A personal loan is an amount of money borrowed from a bank, credit union, online lender, or another person that you repay with interest over a set period, usually around 2 to 5 years. You can use the money for anything you need.

How can I get a personal loan?

Generally, you would need to apply through your bank or other lenders. You would need to provide lots of info on your job history and submit to a credit report. Then, you would need to wait for your application to be processed and hopefully approved. A few business days after approval, you would receive your funds.

Why might a personal loan not be right for me?

Generally, personal loans from banks that have favorable interest rates and terms are for people with excellent credit. If you do not have excellent credit, you might find that the interest on loans from banks or other lenders might not be worth it for your situation.

What is a pawn loan, and why might that be better for me?

A pawn loan is a secured loan, meaning that you would put something up as collateral for your loan. Unlike a personal loan, a pawn loan is a quick way to borrow money because there is no credit check or application process. Your loan amount is based on the value of the item you pawn.

For example, if you own a popular video game console, you can bring it to your local pawn shop, where your pawnbroker can figure out its value. Once the value is determined, your pawnbroker may give you a loan for a percentage of the amount of the appraised value of your console. They will go over the interest rate and repayment terms. From there, it is up to you to decide if you will move forward with your pawn shop loan.

If you decide to go for it, you will get cash in hand right then and there. If you repay your loan within the time frame of your agreement, you will get your console back. If you don’t repay, your pawnbroker will resell your item. You can obtain a pawn loan against anything of value.

Here are some basics of pawnshop loans:

  • They’re usually for small amounts – The average pawnshop loan in the U.S. is for about $150.
  • There are never any credit requirements – Pawn shop loans do not rely on your credit history. Your credit is not looked into. Taking out a pawn loan is not reported to credit bureaus, and failing to repay will never affect your score.
  • The repayment periods are generally short – Repayment terms vary, but borrowers often have 30 to 90 days to repay a pawn loan and get their item back.

Why a pawn loan?

For people who are unable or unwilling to put their credit at risk or to obtain a traditional loan, a pawn loan can be an attractive option. Also, for people who do not have a bank account, who have bad credit or not enough credit, pawn loans are a source of quick money because there is never any credit check involved. Also, the consequences of not repaying a pawn loan are not as costly as failing to repay other forms of personal loans. Where you run the risk of ruined credit by not repaying a bank loan, you only risk not getting your item back if you fail to repay a pawn loan. No debt collectors will harass you. Bad marks on your credit can follow you around for many years and can be harmful to everything from housing to employment.

Additionally, pawn loans feature relatively low-interest rates. They are lower than title loans or payday advances, the rates of which can be up to 4 times more than the rate of a pawn loan. Pawn loans are also the fastest way to get your money. If you find yourself in need of cash, your local pawnshop can get you your money in a matter of minutes.

How can I get a pawn loan?

First, make sure you have an item or items of value. Pawnshops deal in all kinds of items, but some things are more in demand than others. Your local pawn shop will likely be interested in something like:

  • Small Electronics
  • Watches
  • Jewelry
  • Video games and video game consoles
  • Firearms
  • Tools

Then, make sure you do your homework! Research items like yours online to see what they usually sell for. The more you know about the demand for your item, the better idea you will have of how much your loan amount may be. You can expect about 40% of the appraised value, but this will vary on a case by case basis.

Next, make your items presentable and have any accompanying paperwork or accessories. Give it a thorough cleaning and gather things like remotes, chargers, and the like. The more complete the item, the easier time your pawnbroker will have reselling it.

How can Central Mega Pawn help me with a pawn loan?

We offer a quick, convenient, and confidential method of borrowing money for members of our community. We also make every effort to extend the highest amount possible on our loans, because we want to help you. We are a safe and helpful alternative to payday advances and other predatory lenders. Not to mention, we have a robust online store, which means that we can reach lots of customers and can make the best offers on your items of value. Visit us today to see how we can help you get the money you need in a matter of minutes!

Do Pawn Shops Buy or Make Loans Against Antique Furniture?

Do Pawn Shops Buy or Make Loans Against Antique Furniture?

The question of whether or not pawn shops buy or make loans against antique furniture is actually a difficult one to answer. While most pawnshops deal with antiques generally, antique furniture is a whole different topic. Unlike other, more popular items that find their ways in and out of pawnshops, such as electronics and tools, antique furniture is not a one-size-fits-all proposition. Keep reading to find out more about pawning or selling your antique furniture to your local pawnshop.

First, why consider your local pawn shop?

If you’ve got some antique furniture lying around that you no longer want, you might be thinking of selling it. But, then you might think of all the work that will go into selling it on your own, such as listing it online or arranging to have a yard sale, or dealing with low-balling customers, not to mention shipping and waiting for payment. Selling your antique furniture to your local pawnshop can be fast and easy and will get you cash in hand immediately.

Or, if you need some quick cash and believe that your antique furniture may have some value, pawning it can get you the money you need in a matter of minutes: no bank applications, no predatory payday loans, no risk to your credit score.

Unique factors that affect if a pawn shop will buy or pawn antique furniture

Your pawnbroker has to consider a particular set of factors when they are deciding if they will buy or loan against the value of your antique furniture, including:

  • Size of the item – large pieces of furniture take up a lot of room and forces your pawnbroker to get creative about where they will keep your furniture protected until you repay your loan or when it comes time to resell.
  • Size of the shop – shops with small salesfloors must carefully consider where and how they will present your item.
  • Difficult to price – unlike small electronics or collectible, or basically anything whose value can be researched online, antique furniture is difficult to price. Price may come down to your pawnbroker’s experience with antique furniture, and what they feel might be the demand for your item.
  • Difficult to buy – generally, one of the things that make pawnshops so consumer-friendly is that they are easy to work with. You can walk out with a loan or cool item in minutes. With furniture, however, a customer may need to consider how they will get it home and where it will fit.

Should you sell or pawn your antique furniture?

It all comes down to what you need. You may get a little more money if you decide to sell outright as opposed to pawning. However, if your pawn your antique furniture, you will get your item back when you repay your loan. If you want the thing out of your home quickly and easily and don’t mind not getting it back, selling to your pawnshop might be the way to go. However, if you need some quick cash and aren’t ready to let go of your piece of antique furniture, possibly forever, your pawnshop can help you get the funds you need without making such a sacrifice.

How to pawn or sell your antique furniture to your local pawnshop

If you believe that your pawnshop may be interested in buying or loaning against the value of your antique furniture, here’s what you can do to help attract the highest offer:

  • Call around – even if your item is small, lugging it around and taking it to various shops in search of an offer can get cumbersome, and may also result in damaging it. Call your local shops and ask if they might be interested in seeing your item.
  • Clean it up, but carefully – give your items a thorough dusting, but be careful not to use any cleaning products or tools that may damage any part of the furniture. Be extra careful with upholstered items, as antique stitching and seams can be extremely delicate.
  • Do your homework – if your item has a particular provenance, which can be proved by tool marks or other identifying factors, find where they are on your furniture and learn about them. Being able to tell your pawnbroker about your item will give you leverage.
  • Find any paperwork or certification – bring in any certification or paperwork having to do with your antique furniture. Your pawnbroker will have an easier time of reselling if they can verify its authenticity and history with certification.
  • Be prepared to negotiate – your pawnbroker will be open to negotiation. The more you know about your item, the more leverage you will have.
  • But, have realistic expectations – keep in mind that pawn shops have to profit on every item in their shop. For most items, sellers or borrowers can expect an offer of around 40% of its value.

Does Central Mega Pawn buy or pawn antique furniture?

We love antiques! However, everything we buy or pawn is considered on a case-by-case basis. We know that large or unwieldy pieces can be hard to transport, so if you have some antique furniture that you’d like to sell or pawn, give us a call first. We know what questions to ask to provide us with an idea of if we will be able to buy or pawn your antique furniture. We will do our best to help you, but we will also be honest about what we can do. Giving us a call will save you time and effort.

Bottom line: because every pawn shop must consider the needs of the community it serves, not every pawn shop will buy or pawn antique furniture. Your best bet is to call around to the pawn shops in your city and visit them to see if they might be interested in your furniture. At Central Mega Pawn, we are always happy to help, so be sure to come and visit us if you are in the Inland Empire or Southern California area!