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  • Writer's pictureGlenda Craddock

Does Credit Score Matter With Collateral Loans? | Hilltop Pawn

Interested in collateral loans? If so, you might be worried that you will not be able to take out a collateral loan because of your poor credit score. Your first question might be...does credit history ever matter when you want to take out a collateral loan? This depends on the financial institution you work with, the types of loans you are interested in, the type of collateral you're dealing with, and so on. Here at Hilltop Pawn, we're here to help. Also, be least, when you work with us, less-than-perfect credit never matters! In fact, your credit does not matter whatsoever.

Does Credit Score Ever Matter With Collateral Loans?

First of all, be aware that bad credit can get in the way of you taking out collateral loans. This depends on the types of collateral loans that you're interested in.

For example, real estate loans -- like mortgages -- are a type of collateral loan, since the home can be foreclosed on if the mortgage isn't paid. Basically, the house is the collateral. Naturally, credit score definitely matters when you're buying a house. Of course, there are some programs out there that make it a little easier for you to qualify for a mortgage with less-than-perfect credit -- like if you put down a big down payment or use a government program. Still, mortgage lenders typically look heavily into your employment history, income, and much more. And again, credit does matter.

The same is true with auto loans. A car loan is another type of collateral loan, since again, the car secures the loan and can (and will) be repossessed if you don't make your payments. Even though there are car lenders out there that definitely work with people who don't have a great credit history, you can expect higher interest rates, and credit generally does matter at least somewhat. Many car lenders will not loan to you at all if you have poor credit, despite the fact the car loan is an auto-secured loan.

You also have the option of a secured credit card. These credit cards usually have a higher annual percentage rate and annual fee. Some credit card companies will grant a secured credit card without a credit check, but many at least have some credit requirements. Also, be aware that you have to have the money up front to put down as a deposit for the secured credit card, so this isn't a good option if you need quick cash for emergency expenses, even if you do have higher approval odds than for most credit cards.

Still, even though it's true that credit score does sometimes matter with collateral loans, you shouldn't let this get you down...since pawn shop loans from Hilltop Pawn are one loan type where your collateral works as your approval, and your credit history never matters.

Unique gold ring in a green box

Does Credit Score Matter With Collateral Loans from a Pawn Shop?

​Pawn shop loans are a good choice if you're looking for collateral loans that don't require you to have a good credit profile. We don't even perform a soft credit check. This is truly the industry's not just us who will grant a pawn loan without running a credit check. However, there are other reasons to come see us as your trusted local reputable lender for pawn loans of all types. Not only do we not care about your lower credit score, but we offer anything from a minimum loan amount of $5 to much higher loan amounts of $50,000. There's no formal application process...and pawn lenders like us typically offer better interest rates than what you'd get on payday loans, online title loans, and so on.

​Visit Hilltop Pawn & Jewelry for Your Collateral Loan Today

At Hilltop Pawn, we specialize in making it easy for our customers to borrow money. We also offer a variety of other services you might be interested in, including buying and selling jewelry, performing jewelry repair, buying and selling gold, and much more.

Are you wondering why we are the best pawn shop to visit? Well, there are a few reasons.

  • We have more experience and take a closer look at the value of the collateral you bring in. We want to make you the highest loan amount possible, and properly valuing your collateral is an important part of this! We have a lot of experience with valuing all different collateral types and will make you a fair deal.

  • There's never a loan application form, the final approval only takes minutes, and you'll receive your loan proceeds on the spot! It's truly one of the fastest and easiest ways to take out a short-term loan. Plus, we'll do anything and everything we can to make the loan process easy for you. We know that you don't want to deal with a hassle when you're stressed out from financial issues or simply looking for fast money in a hurry, and we'll make things easy because of that!

  • We are a trusted name in Virginia Beach and beyond. Why go with a business you know nothing about, when you can work with a trusted pawn and jewelry store that has been in the business for years and that has helped many Virginia Beach residents with their borrowing needs? There might be different lenders in the area, but we are known as the best for a reason.

  • Our requirements are simple. You have to be at least 18 years of age, you have to have an unexpired government-issued photo ID with up-to-date personal information, and you have to have collateral. That's really it to get a fast cash loan that helps with unexpected expenses and immediate cash needs!

  • Low credit score, high credit score, it doesn't matter...the amount of emergency cash you borrow depends completely on you with our loan options. Bring us ample collateral to support the loan amount you want, and we'll loan up to $50,000, no problem! Borrow as much cash as you need, whether it's your first time working with us, or if you've been in our store many times before. The lending decision is the same either way.

  • We want to be as transparent as possible throughout the entire process of loaning you money! We'll fully explain the loan agreement and answer any questions that you have!

There are all different type of loans and financial institutions out there that you can work with, and obviously, you should choose the right type of loan and the right reputable lender for your particular financial situation and financial needs. For many, the financial products here at Hilltop Pawn are a great choice, especially if the credit bureaus have listed less-than-great things on your credit report. After all, we don't even check! Next time you're looking for a good option for borrowing anything from smaller to higher loan amounts, bring your item of value to our pawn and jewelry store, and let us make you a loan approval offer based on the value of your collateral. You'll have money in your pocket in no time, whether you're interested in small loans or bigger loans!

Person fanning $100 bills

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