Many times, when a person wants to borrow money, they typically think about going to a bank for a loan. Unfortunately, banks are particularly interested in a person’s credit score, and this can effectively exclude a number of people who may need a loan but may not have good credit. Fortunately, if a person is looking for quick loans in Lincoln Park, there is an option that can help them avoid any excessive scrutiny when getting a loan.
Check Out a Pawn Shop
Many dedicated payday lenders exist that can help a person get a small loan without having to fuss with the current condition of a credit report. However, pawnshops can also offer an even more streamlined process.
The Need for Collateral
Getting a quick loan at a pawnshop typically only includes the offering up of some sort of collateral. Instead of having money taken out of person’s checking or savings account when the loan comes due as is customary with a payday loan, a pawnshop will simply hold the collateral until the loan is repaid.
Flexible Loan Terms
This type of loan can be a short-term loan that can be paid off in a matter of a few weeks or, the pawnshop can agree to a longer-term. The good thing is that these types of loans are extremely easy to get and a person won’t have to worry about having their credit checked by the pawnshop.
When a Loan Goes Into Default
Defaulting on a loan is never a good thing, but in these situations, it’s typically easier to deal with. Simply put, if the loan isn’t paid pursuant to the loan terms agreed upon, the pawnshop will simply take ownership of the collateral.
This may not be a great thing for the individual that put up the collateral, as the loan value will likely be much less than the actual value of the collateral. However, it does avoid difficult collection processes that lenders may have to enact in order to get repaid on a loan that has gone into default. And, pawnshops don’t report to credit agencies.
As you can see, quick loans in Lincoln Park offered through pawnshops may be a good option. If you’re leery about people putting money in or taking money out of your checking account, you may want to look at the lending services provided by Clark Pawners and Jewelers.
