Sometimes, we find ourselves in situations that require getting quick cash to resolve. Most people are living paycheck to paycheck or are dealing with some sort of debt, which means emergency situations can hit extra hard. A lot of times, people will get a paycheck advance to obtain cash as quickly as possible. This is a big mistake since there are far better options for getting quick cash such as pawning an item at your local pawn shop. In most cases, you will actually end up saving money by going with a pawn loan instead of a paycheck advance. Below, we are going to walk you through some of the benefits of pawning versus a paycheck advance so that you are able to make the right decision for your future.
1. Lower Interest Rates
Generally speaking, the interest rates on paycheck advances have extremely high-interest rates. The terms are usually short and can have interest rates that simply don’t make sense. With a pawn loan, you won’t even have to pay interest if you pay back your loan within a month. If you find yourself unable to pay back the loan in time, your item will be sold or you can pay interest to extend the loan. The interest rates for a paycheck advance and a pawn loan are very different, so make sure you do your research before making any decisions.
2. Less Impact to Your Credit Score if You Can’t Pay It Back
One of the worst things that can happen with a paycheck advance is that you find yourself unable to pay back the loan. This can lead to huge hits on your credit score that will be difficult to overcome. One of the benefits of pawning versus a paycheck advance is that the worst thing that will happen is that your item will be resold by the pawn shop. You won’t have a negative impact on your credit score if you secure a loan from pawning one of your possessions.
3. Quicker Cash
You might be thinking that a paycheck advance is the quickest way to get cash when you need it, but the truth is that you will need to submit a variety of documentation to get your money. The lenders will try to determine if you qualify and what the maximum amount they will loan you will be. With a pawn loan, you can simply bring your item into your local pawn shop and walk out with cash shortly thereafter. This is a huge benefit to pawning an item versus getting a paycheck loan.
As you can see, getting a loan by pawning one of your possessions is a lot more advantageous than obtaining money from a paycheck advance. Make sure you check out Las Vegas Pawn if you are interested in pawning one of your items or you simply want to browse an incredible selection of items for sale at great prices.