Making the Pawn Shop Your Bank

October 8, 2013

When you hear the word “bank,” probably the last phrase that comes to mind is “pawn shop.” Yet, if the New York Times article “Platinum Card and Text Alert, via Pawnshop” is anything to go by, pawn shops are quickly gaining ground as the go-to establishment for the average American’s financial needs. That’s because pawn shops offer a number of advantages over traditional financial institutions, such as the following: Quick Cash There’s no need for a pawn shop customer to fill out a mountain of paperwork just to get extra greenbacks. All you have to do is “pawn” any item that can be used as collateral. Pawning works like this: You hand over, say, a gold locket that has been passed down your family for generations. In exchange, the shop will give you cash based on a percentage of the locket’s value, on the condition that you will pay it back plus interest within one to four months. Credit Scores Don’t Matter In the event you default on your pawn loan, there’s no need to worry about it showing up on your credit history, since the typical pawn shop isn’t beholden to credit rating agencies. However, if you value both your cash flow and the item you put up as collateral, it’s better to pay off your loan as soon as possible. Otherwise, you’ll have to pay a higher interest on your pawn loan (since interest goes up over time), or—in the worst-case scenario—you’ll end up losing the collateral to the shop. Convenience Recently, pawn shops have expanded their services from typical buy-sell transactions to bill payments, check cashing, money transfers and even prepaid cards. Although banks also offer these, the fact that pawn shops don’t take your credit history into account when screening you as a potential client means that you’ll have an easier time accessing the aforementioned services. This relatively lenient screening process justifies the higher rates pawn shops charge on their loans, since they have more to lose if delinquent debtors default. You can take your pawn shop experience to a whole new level with YouPawn. Here, there’s no need for you to visit a brick-and-mortar establishment to exchange a valuable possession for quick bucks. All you have to do is set up an account at the website, put an item up for a pawn loan or sale, and you’re good to go. Since anyone can sign up for YouPawn, you have access to a greater number of potential buyers/sellers and have greater control over who you choose to deal with at the other end of the line. For the best place to pawn online, visit YouPawn today!

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