Pawn shop Jewelry Buyers in Lincoln Park not only purchase valuable items for cash, they also make secured loans on those possessions. A secured loan is one in which the borrower provides collateral that the lender keeps if the loan is not paid back. In contrast, a person might borrow through an unsecured loan by taking out a payday loan or an installment loan, or getting a credit card cash advance through an automated teller machine.
Secured vs. Unsecured Lending Products
Not having to apply for a loan is one of the most convenient aspects of borrowing from pawn shop Jewelry Buyers in Lincoln Park. Not everyone qualifies for unsecured financial lending products. Another type of secured loan uses a car title as collateral, but requirements for borrowers are more stringent because the lenders do not want the hassle and expense of repossessing a vehicle and selling it. Receiving cash for jewelry is one of the fastest ways of obtaining money for an emergency like an essential auto repair or a malfunctioning appliance.
Finance Charges
Loans for collateral, as well as payday and installment loans, have higher interest rates than loans from credit unions and banks. However, they are intended to last for a relatively short time, such as 30 or 60 days. That can make the actual finance charge paid relatively low compared with a 12-month bank loan. The borrower must follow the rules or the item used as collateral will be forfeited. Mainly, that means paying a minimum of the interest due by the end of the loan term, which usually is 30 days.
Local Establishments
It’s possible to arrange pawn loans online, but people still generally prefer to do business with a local establishment such as Clark Pawners & Jewelers with a reputation for fairness and excellent customer service. The loan amount is connected with the value of the object brought in. Thus, a gold diamond ring will be worth more than a sterling silver bracelet. Value is often determined primarily by weight of the piece. The customer’s credit score, income and employment history are not even considered. Visit clarkpawners.com for more information.
