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  • Writer's pictureGlenda Craddock

What are the Benefits of Collateral Loans? | Hilltop Pawn

Collateral loans, also known as pawn shop loans when you work with a local pawnbroker, are highly popular. You have likely heard of these popular loan options over the years, and you might have even considered taking out this type of cash loan when you found yourself in need of emergency cash for unexpected expenses or other immediate cash needs. If it's your first time seriously considering this type of loan, however, you might have some questions. What are the benefits of these types of loans, for example. We're here to tell you more about the benefits of collateral loans from a pawn shop when you're in need of quick cash. Once you find out more about the benefits of pawn loans, we think you might choose our financial products as a long-term solution for each time that you need quick money for emergency expenses, especially if you have a low credit score.

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Credit Score Doesn't Matter With Our Collateral Loans | Hilltop Pawn

One of the primary reasons a lot of people like our type of collateral loan is because credit score doesn't matter. Even many banks and online lenders that claim to work with people who don't have good credit still run at least a soft credit check, and they can still turn you down for your credit score. After all, although some of these lenders claim to offer a good option for people with bad credit, and although they may accept less-than-perfect credit, they do often still have at least some credit requirements.

Unlike traditional banks and other different lenders, we don't require a loan application and we literally don't check with the credit bureaus at all. With collateral loans, the lender's risk is greatly reduced After all, we have possession of the asset until you repay your loan, and we can resell if the borrower defaults, allowing us to recoup our losses. Because of the reduced risk, we're able to make loans without looking into credit and other similar things. Lower credit score never fact, we never know what your credit score is in the first place. This is the case whether you're looking for small loans or higher loan amounts...your collateral works for your loan approval, and your loan amount is based solely on the item of value that you bring in.

Choose the Amount of Money You Borrow

One great thing about a collateral loan is the fact that you can choose how much you borrow. With an unsecured personal loan from the average financial institution (such as banks, credit unions, etc), how much you can borrow depends on things like your credit history, income, and so on. There are some upsides to unsecured loans, of course, but this certainly isn't one of them.

With a collateral loan, on the other hand, you're the one in control. You choose which valuable asset you bring in. The amount you can borrow is based on the value of your collateral, after all. Bring us more valuable jewelry or other high-end items, and borrow more money! If you need a bigger loan than you would normally qualify for and have the high-value collateral to secure it, this is a loan type you should take a closer look at...especially if you have poor credit!

Get an Instant Loan Approval at Hilltop Pawn in Virginia Beach

If you're dealing with financial issues right now, you might need fast money, and you might need to borrow as much cash as possible on the spot. One great thing about a pawn loan when compared to the average bank loan (or other types of loans) is the fact that our loans are super fast. The loan process generally only takes minutes. There's no application form for you to fill out or a formal application process for you to worry about. We don't check your bank account information, employment history, or credit score. We just look at the value of the collateral that you bring in, and we make you a loan offer on the spot. The lending decision takes no time, and once we've determined you've brought in acceptable property to secure the loan and that you're at least 18 years of age with a valid government-issued ID, we'll hand you cash right away. The entire process takes no time, and you'll be out the door with fast cash as soon as possible.

Enjoy Lower Interest Rates on Collateral Loans

There are a few loan options out there that offer emergency funding, even for people with less-than-perfect credit scores. Be aware of two things, though -- for one, there are a lot of scams out there, such as with so-called online payday loans and online car title loans that just steal your information, take an application fee, and never loan you a dime. There are also a lot of predatory lenders out there, such as bad credit personal loans, online title loans, auto title loans, payday loans, and more. Luckily, pawn loans are heavily regulated throughout the country -- including in Virginia -- and you can pay lower interest rates and enjoy a more fair and transparent process by working with us. We follow all state and federal law in regards to loaning you money, and we're always careful with the personal information that we take from your ID, such as your date of birth and address.

If you're wondering whether or not a pawn shop loan is right for you, we think you'll find this is the case. If you're looking for an easy and reputable lender you can deal with to take out one of these loans -- regardless of bad credit score or other situations -- you've found one. Visit us at Hilltop Pawn, the pawn and jewelry store that Virginia Beach residents can count on. We'll offer you a quick and easy cash loan with easy-to-understand and fair loan terms. Have questions? Check out the other posts and pages on our website, give us a call, or stop by when it's convenient for you!

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