When people have problems with their credit and their income is sporadic, they may wonder how they could possibly get a loan. They aren’t eligible for a bank loan because of the credit score, and they don’t qualify for a payday loan because they do not have a regular source of income. Gold Dealers in Chicago that provide pawn loans offer an opportunity for people who have jewelry, coins or other gold items.
How It Works
These options are secured loans, in which the customer offers collateral in exchange for cash. The cash must be paid back along with an interest fee if the customer wants the gold items returned. The loan term usually is 30 days, and Gold Dealers in Chicago may offer 30-day extensions as long as the borrower at least pays the interest due on time.
A Straightforward Process
This is one of the most straightforward kinds of loans, and one of the oldest types as well. Pawnbrokers do not check the borrower’s credit or report to any credit bureaus. The customer can decide to default on the loan without any repercussions except for forfeiting the items. This person is welcome to return to the store in the future and acquire another loan or sell unwanted belongings.
Pawn Loans vs. Vehicle Title Loans
Car title loans also are secured loans, but they are not available to everyone with a vehicle. Someone who is still making car payments normally does not qualify for one of these lending options. Some companies ask for verification of income as well because they do not want to deal with the risk of having to repossess a vehicle. In addition, many people are uncomfortable with the possibility of losing their car if they can’t pay the loan off on time.
Instead, receiving cash for jewelry or other valuables at a business such as Clark Pawners & Jewelers is less likely to cause serious problems for the person who needs to borrow money. As long as the borrower does not hand over something of extreme sentimental value without knowing where the money will come from to get it back, the transaction should be mutually beneficial. Contact us for more information.