When an accident happens and you need money right away to pay for medications or medical supplies, it can be hard to get the money you need, if you are already strapped for cash. Banks will often not give someone a loan for a few hundred dollars to help them get by until their next payday because it is not profitable for them. Fortunately, you can get the money you need when an accident occurs by getting a collateral loan from a pawn shop. The guide below walks you through everything you need to know about getting a collateral loan.
Many Different Things Can Be Used as Collateral for the Loan
Pawn shops will accept many different things as collateral for your loan because they sell so many different things in their shops. Jewelry, cars, motorcycles, and even electronics can be used as collateral for a loan. It is important to know that anything that is titled has to have a clear title in order for you to use it as collateral. The pawn shop will need to hold onto the title of the item until the loan is repaid so that they can have the item repossessed if you default on the loan.
The Loan Does Not Have to Be Paid Back in Full Right Away
Many pawn shops allow you to pay back the loan amount over an extended period of time. You often have to make weekly or biweekly payments. The shop may allow you to choose the dates that you want to pay the payments or they may have set dates that everyone pays their payments on. Be sure to find out the specifics about the payment policy before agreeing to the loan.
You Will Have to Pay Interest on the Loan
In order for the pawn shops to make a profit on the loans, they have to charge interest on the loans. The interest is often relatively high in comparison to other loans, but the sooner you pay back the loan, the less interest you will have to pay in the long run.
The Item Can Be Sold If You Do Not Repay the Loan in Time
If you do not repay the loan by the designated date that was agreed upon in the loan contract, the shop can sell your item. They do not have to warn you or contact you before selling it.
Getting a collateral loan (from a provider such as Elite Jewelry and Loan) takes just a few minutes and allows you to get the money you need for your emergency right away. Be sure to read all of the fine print on the contract to make sure that you know exactly how much money is due for each payment and how long you need to make the payments for before agreeing to the loan.
Share6 June 2016
A few days ago, my mother-in-law’s dad passed away. This sweet man lived a long, full life. He was ninety-one-years-old when he died. At his funeral, my mother-in-law told me she liked the ruby, cross pendant I was wearing. Because I wanted to cheer this sweet woman up, I immediately came up with a plan. I decided to buy her a pendant like mine. Because this pendant was also available in sapphire, I decided to purchase this stone for my mother-in-law. Sapphire is her birthstone. On this blog, I hope you will discover the best types of jewelry items to buy for a mother-in-law. Enjoy!