Borrow money for a deposit – loan without credit bureau
December 16, 2019
Many people occasionally come into contact with money worries. It doesn’t always have to be a loan to get your money quickly. Pawn shops are very popular points of contact, especially when speed and simplicity are important. For whom it pays to go to a pawnshop and for whom not it is – about this in our article.
General information about pawn shops
In Germany alone there are now around 200 such houses, which serve over a million people a year. Pawn deals were settled before BC – and will probably do the same in the next millennium. But why are they so popular?
Advantages with a pawnshop
First and foremost, pawn loan loans are valued for their quick and easy processing. Various items are taken as a deposit, from a car to gold jewelry and technology. The value of the pawn is usually estimated by an expert within a few minutes and the possible loan amount is given. The loan periods range from a few days to a year, if an extension is desired, even longer. The fees are mentioned immediately, neither citizens nor credit bureau information is required. If you do not want to have the pledge returned, you do not have to pay back the pledge. The thing is sold to a third party, so the pawnshop gets its money back.
Disadvantages of a pawnshop
The advantages would be far too good if there weren’t some disadvantages. So the fees are not without, and when comparing with a bank loan, the loan will clearly be cheaper. Furthermore, the estimated and paid value of the loaned item will not be the resale value. As a rule, the pawn shops pay out around 50% of the value. It is because they want to protect themselves in the event that the object of value is not picked up and therefore has to be sold – it is not always possible to raise a reasonable price at auctions. After all, around 10% of the stored values are no longer triggered.
For your orientation: Statistically, the average loan amount from a pawnshop is $ 300. This does not mean that the sums can be borrowed up to $ 50 or over $ 5,000, provided, of course, that the item is valued at this value and is loanable.
Conclusion: If you need quick money and a bank loan is out of the question because, for example, you have a bad credit bureau score, the way to the pawnshop is a good alternative. However, you have to keep in mind that rental fees are very high. In any case, it pays to make several loan inquiries – credit intermediaries are often less strict when it comes to lending than house banks, and they ask for lower interest rates on the loan amounts than the pawnbrokers.