If you are looking borrow money, is a pawn loan a better option thank a bank loan? Here’s a look at the advantages and disadvantages of each:

Bank Loan

Banks can be a great way to borrow money that you can pay back over time. Banks are able to lend larger amounts of money based on collateral you have to help secure the loan or on your personal credit history. Home equity loans and refinance loans are those where you borrow against the equity you have built up in your home to try and pull out the cash you need. These loans also require you to have a good credit rating and can take time to process, sometimes months. They also generally are for larger amounts of money. Typically bank loans are for thousands if not tens of thousands of dollars, which may be more money than you need and more time than you have for it to process. They do offer the advantage of offering a tax deduction on the interest you are paying as well as being for larger amounts. In the worst case scenario, if you end up having trouble paying the loan back, you could end up ruining your credit and possibly even losing your home to foreclosure. There is also the added pressure of having bill collectors chasing you for money which can also be stressful.

So bank loans can offer you more money and have a tax advantage over other loans. The disadvantage is they are for larger amounts, take longer to complete and require you to have good credit. There is also the risk of losing your home and having to avoid bill collectors.

Pawn Loans

Pawn loans are a great way to get cash fast with no real strings attached. You provide something of value: gold & diamond jewelry, electronics, musical instruments, tools, designer handbags and other items with a secondhand value. A pawnbroker will lend you money based on the value of items you provide to secure the loan. There are no credit checks or delays in processing the loan. Simply go in with your items and a valid ID and you can walk out with cash in minutes. It’s that easy. As an industry, over 80% of pawn customers get their items back, and at Empire Loan it’s over 90%. Loans are generally for smaller amounts with the average loan amount being $330, however Empire offers loans from $26 to $26,000 and more depending on the collateral you provide. Unlike bank loans, pawnshops do not offer loans on real property such as homes and vehicle title loans are illegal in the state of Massachusetts and we don’t offer them in our Rhode Island stores. There are no credit checks and pawnbrokers do not report to credit agencies. If you find that you can’t pay the loan back, the pawnbroker may foreclose on your loan and sell your items but you are free and clear and owe nothing.

Pawn loans are fast and easy cash loans based on the value of merchandise you provide to secure the loan. A pawn can be for as little as $26 or as much as $26,000 or more depending on what you are able to provide as collateral to secure the loan. There are no credit checks, no waiting for processing and no repercussions for not paying the loan back.

Bank loans make perfect sense for buying a home or other big purchases. A pawn loan is the perfect way to get the cash you need, when you need it for every day life.