When you need to get fast cash, you can turn to both payday installment loan lenders or pawn shops. Both of them can provide fast cash without credit checks with no questions asked.
With most pawn shops, you need to leave something valuable in exchange of the fast cash you need. Valuables such as jewelry, home appliances, cars or even title of your home can be used as collateral. The main problem with a pawn shop is that you will never get a loan for the full value of your collateral.
With a payday installment loan, you get exactly the amount of fast cash that you need but the loan will be repaid with a finance charge. No collateral is needed; however, you need to leave a post-dated check with the amount you borrowed plus the additional charges with the lender. This is security for the lender. The check will be cashed after two weeks or on the due date agreed upon.
With a pawn shop, you will get whatever the lender is willing to give you, depending on the value of your collateral. Oftentimes, the amount may or may not be enough to cover your needs. Also, when you turn to a pawn shop, you put your property at risk. If you aren’t able to repay at least the finance charge on the due date, then your pawned item will become the property of the pawn shop and it will be sold.
However, a payday installment loan doesn’t require that you risk any of your physical property. There is no collateral required to get a cash advance loan. However, you need to provide verification of your age, employer and bank account information. Then you get the fast cash you need with no collateral.
The finance charges for a payday installment loan are quite similar to that of a pawn shop. Pawn shops usually give you a month to repay while a payday installment loan is usually due on your next payday but can be extended as long as a month.
Both lenders work similarly as far as extensions go. If you cannot repay the full amount on the due date, then you can just pay the finance charges and have the due date extended until your next payday.
Typically, pawn shops have their place and can be useful especially if you have some property that you want to use as collateral. They will usually give you more money for an item if you sell it to them rather than pawning it to them. Once you have relinquished your valuables, they do not have to hold the item and can immediately put it up for sale.
But if you prefer to keep the things that you own and still get the fast cash you need, then a payday installment loan is suitable for you. Payday installment loans can be easily applied for online and can be conveniently withdrawn electronically 24 hours a day, 7 days a week.
Both payday installment loans and pawn shops are suitable financial resources in times when you need fast cash. However, both differ in convenience and risk. Decide carefully and choose wisely.