Pawnbroking is an age old tradition of lending money against valuable goods, in particular jewellery. Pawnbroker loans are a fast and safe way to help you unlock the value of your jewellery, watches etc. without selling them.
Whether you need to pay off an unexpected bill, or raise a little bit of extra cash for a well deserved holiday, a pawnbroker loan can help by offering you a quick cash pawn loan against your valuable jewellery or quality watch.
Unlike the many gold buying websites and companies, by pawning your jewellery you are merely borrowing money against it’s value – pay off the loan within the agreed terms and your item is returned to you.
Fast service, no credit checks – can be a great way to borrow over a short term (usually 6 months or so) no matter what your credit history is like … an alternative option to a more traditional bad credit loan.
The pawnbroker loan is a fast growing solution as cash strapped UK citizens head for high street pawnbrokers like cash converters who have seen their personal loans business rise 4 fold over the two years from 2010. With higher interest rates being off-set by high street and fast, flexible convenience.
How It Works.
The principle is very simple – take along any suitable item of value which could be gold, jewellery, electrical goods, art, watches, cameras (the list is diverse but different companies will lend against different items) to your local high street pawnbroker who will then value it and give you an instant loan against the value of the item. Be aware though, the valuation is based on a second hand resale value and hence may be lower than expected. Repay the loan within the terms of the agreement and the item is returned to you but if you don’t, or chose not to, repay then the ownership of the item becomes that of the pawnbroker who is then at liberty to sell the item.
Because there’s no real risk to the lender then pawnbroker loans are instant and will not require a credit check (although you will need to be over 18 and prove your details). Once the loan is agreed the money will be transferred instantly. The loan can then be repaid usually anytime within the maximum term at which stage your item is returned.
There are now companies providing this same pawnbroker service online but, whilst initial application is online and a decision instant, obviously the loan cannot be paid out until the item is received by the lender which will involve either the post or calling into a local shop or office.
Benefits Of A Pawnbroker Loan.
It may not be the cheapest form of lending but it is probably the fastest, easiest and most flexible form – especially if you have a bad credit history as there is no need or credit checks at all.
Every pawnbroker differs in what they lend against, minimum loans and maximum loans – some focus on jewellery and watches and higher value loans whereas others will lend £10 against a computer game … it really does vary but with all companies the principle is the same.
The danger of such easy access to cash is that interest rates can be high, the valuation of the pawned item low and the danger that the lender may not be able to repay and will therefore forfeit the item completely … if this is the case it may be much more cost effective to actually sell the item in the first place.
Pawnbrokers are licensed under The Consumer Credit Act 1974