3 Fast Cash Alternatives to Pawn Shop Loans

iQuanti: Pawn shop loans are a great option if you want fast cash and have poor credit, but it may not be the right option for you if you don't have an item of value that you're willing to risk losing. Luckily, there are loan alternatives if you don't want to go this route. Let's dive deeper into what a pawn shop loan is and three fast cash loans you can consider as alternative options:

What is a Pawn Shop Loan?

A pawn shop loan is a secured loan that uses an item of value you own as collateral, such as jewelry, artwork or electronics. When the borrower asks for a loan, the pawnbroker will assess the collateral and determine how it's worth. They will then offer a loan amount worth a percentage of the item's value.

The pawn shop will hold onto the collateral for a specified period of time while the borrower pays back the loan plus interest. If you don't repay the loan, the pawn shop will keep your item.

Alternatives to Pawn Shop Loans

If you'd prefer not to go the pawn shop route or have nothing of value to take to a pawn shop, there are other alternatives. Here are three fast cash loans that come with easy application processes, instant or quick funding, and lenient credit score requirements:

  • Title Loans: Like pawn shop loans, title loans can give you funds worth a percentage of the resale value of the item being borrowed against, in this case, the title of your automobile, truck or motorcycle. You don't need a good credit score to get approved for this loan since you're using your car as collateral.
  • Cash Advances: Cash advances can give you some extra cash to help you cover expenses until you receive your next paycheck. These loans come with lenient credit score requirements, and lenders may consider factors in addition to your credit score like your income and employment history when deciding whether to approve you. You must pay the loan back when you get your next paycheck, typically in two to four weeks.
  • Personal Lines of Credit: Many online lenders offer personal lines of credit or flexible loans that let you borrow as much as needed up to your credit limit. The lender may do a credit check, but many approve borrowers with poor and fair credit scores. You'll only pay interest on the amount you borrow and can pay back the money over time or all at once.

The Bottom Line

Title loans, cash advances, and lines of credit are all lending options when you need fast cash. And luckily, you don't need a great credit score to get approved. Do your research and compare options to find a lender and loan that work for your financial situation.

Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.

Source: iQuanti, Inc.