Are Pawn shops and payday loans the same thing?
Pawn shops vs Payday lenders whats the difference?
Whats the difference between pawn shops and payday lenders, well in short pawn shops will hold an item of value for example you can pawn your car or watch, and borrow money up to a percentage of the value of the item being pawned, then after the loan has been repaid you can collect the item.
Pay day loans are a very different concept of lending and have received a lot of bad press, a payday loan doesn’t take hold of any security because they directly debit the funds from your account, If the funds are unavailable you will be stung with late fees default interest and more.
– straight forward lending
– no hidden fees
– no credit checks
– fast funds
– reliable loans
- safe cash loans
- discrete loans
- Bad credit loans
- You need to have security
Pay day loans
- Good for small amounts of money
- No security needed
- All online process
- Hidden costs
- Late fees
- Loans can get out of hand easily
- Prolonged debt
So which is better, they both have there place I guess but if your looking at a large cash loan you will be out of luck with payday lenders as most only lend up to $1000 so in my opinion pawn shops are a much better and safer way to borrow money quickly.
When looking for a pawn shop make sure they take the item you are looking at pawning and are in a good location for you, for example if you wanted to pawn your car in Adelaide south Australia and you searched pawnbrokers Adelaide or pawn shops adelaide, you want to pick a pawnbroker that specialises in cars ie Autocash pawnbrokers because if you were to go to cash converters for example they wouldn’t be able to help you as they specialise in jewellery and tools etc. so when looking for a pawn shop make sure to pick one that suit your needs.