Will Taking Out A Pawn Loan Affect My Credit?

Will Taking Out A Pawn Loan Affect My Credit?

Pawn loans will not affect your credit in any way, even if you miss payments or default on the loan! The reason that pawn loans do not affect your credit is because they are collateral-based, meaning the value of the loan (the principal) is covered by the item(s) you leave with us to secure the loan. For this reason, pawn loan amounts are not typically based on what you paid for the item you are using as collateral or what it appraises for, but rather by the item’s secondhand value. This means that even if you do not pay back your loan, your credit score will not be affected in any way; you’ll simply lose ownership rights to the item you used as collateral to secure the loan.

What Are The Advantages Of Getting A Pawn Loan?

One of the primary benefits of a pawn loan is that they are an extremely quick and easy way to get the cash you need for whatever you need it for. Here at Empire Loan, we do not run any kind of credit or background checks on you when you come in to secure a pawn loan; all you need is a valid, government issued ID and an item that has secondhand value. Our pawnbrokers will quickly research the value of the item you brought in to use as collateral and come up with the fairest possible offer we can make you! If you accept our offer, you can walk out of our store with the cash you need in just minutes, which is why getting a pawn loan is so much quicker and easier than taking out a traditional loan! As mentioned above, the other major advantage of getting a pawn loan is that they will in no way affect your credit because the loan is based on the collateral you use. Empire Loan accepts a wide variety of items as collateral for pawn loans, including electronics, musical instruments, power tools, designer handbags & accessories, selected sports memorabilia, collectibles, and so much more. If you have an item that holds some secondhand value, odds are that you can trade it in for the cash you need at your closest Empire Loan location!

What Happens After I Get A Pawn Loan?

When you get a pawn loan at Empire Loan, you’ll be given a ticket with the details of the item(s) you brought in to use as collateral, as well as a detailed description of the repayment terms for your loan. You can redeem your loan and take your items back at any time by paying back the principal and the accrued interest and fees, but you have as long as 6 months before you have to pay anything. While the item(s) you used as collateral are here, they will be stored in our secure vaults so they’re safe and sound for when it’s time for you to get them back! You can also have as many loans as you have items to secure them and you can even use the same items the next time you come in. We are proud to report that at Empire Loan, over 90% of our customers redeem their loans and get their items back!

Contact Empire Loan!

If you have any questions about the pawn loan process, please do not hesitate to  contact our team at Empire Loan! With eight locations across Massachusetts and Rhode Island, we’re proud to be New England’s most trusted & reliable pawn shop! Contact us today at our store that is closest to you or call us toll free at +1 (800) 375-PAWN!

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Bus Route 2, Lunds Corner

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Bus Route 14 to Stoughton

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Route 11 Broad St.