Data Monitor (a research and business information group) stated that 9 million UK citizens are refused credit each year. Those who don’t qualify for mainstream credit may find that a pawnshop loan can help them out of a tight spot.
When a consumer has an adverse credit history and needs to borrow money fast, securing no credit check finance from a pawnshop or payday lender could provide the answer. However, it should be considered to be a short-term source of borrowing only.
Pawn Shop Loans – Borrow Money Fast with No Credit Check Finance
A loan from a pawnbroker is an increasingly popular way of borrowing money without undergoing credit scoring. It is a poor credit history loan that is granted on the basis of collateral. Jewelry, electrical goods, collectibles, life/endowment policy, shares, vehicle and gold loans are offered on more favourable terms because the lender is able to sell the item to recover their money.
Growth of Pawn Shop Loans – Gold, Vehicle, Electrical Equipment and Jewelry Loans
A&B and H&T pawnbrokers both reported an increase in pre-tax profits of over 30%. According to Brewin & Dolphin (investment analysts) “We calculate the specialist market is capable of doubling in size as traditional sources of consumer credit are withdrawn and the gold price remains high.” The high street presence of pawnbroker shops is expected to increase over the next few years.
How to Get a Poor Credit History Loan from a Pawnbroker
- Take the item to the pawnbroker’s shop for appraisal.
- No credit check finance is provided on the basis of the collateral. The item remains the property of the borrower throughout the term of the jewelry, electrical goods, vehicle or gold loan.
- The collateral can be redeemed at any time by paying off the pawn shop loan and any interest.
- Should a loan from a pawnbroker not have been cleared, the unredeemed item will be sold to recover the principal and interest.
No Credit Check Finance – Borrow Money Fast, But How Much?
The majority of jewelry and gold loans are for relatively small amounts. However, it is possible to get no credit check finance for well over £10,000. The rate of interest reduces on a sliding scale as the amount of money borrowed gets higher. The monthly interest rate is generally in the 3% to 6% range. It is possible to borrow money for any purpose.
Successfully Applying for a Pawnbroker Loan
A pawn shop loan is an ideal, affordable source of no credit check finance based on the provision of collateral. It is possible to borrow money fast for an emergency expense, such as paying the rent or an unexpected bill. It is important that a loan from a pawnbroker is redeemed within the specified timeframe or the item will be sold to recover the principal and any interest that has accrued.