What is a Collateral Loan at a Pawn Shop? | Hilltop Pawn
Pawn shops like Hilltop Pawn generally offer various services for the public. We are primarily a jewelry store, so we buy and sell jewelry all week long. We also grant cash loans, despite not being what you would think of as a traditional financial institution. It's not just banks and credit unions that offer loans....pawn shops offer an easy type of collateral loan that is a good fit for many customers, including those who don't have the best credit history. If you are looking into the different types of loans that are available, consider looking into a collateral loan from a pawn shop today. Hilltop Pawn Shop & Jewelry in Virginia Beach is here to help!
What is a Collateral Loan at a Virginia Beach Pawn Shop?
A collateral loan at a pawn shop is a short-term loan option that allows you to use various personal items of value as collateral. We don't secure our loans with things like your house or your car. Instead, we ask that you bring in assorted items of value for this type of loan so that we can hold on to these items to secure the loan. Then, if you don't repay your loan, we just keep those items of value or resell them in our pawn shop to recoup the loss. You can use items like jewelry, watches, firearms, electronics, musical instruments, power tools, and so on for one of our loans.
Are you wondering why it's worth it to consider a secured or collateral loan instead of unsecured loans? Well, it's often hard to get an unsecured personal loan if you don't have good credit or if you otherwise struggle with getting a loan application approved, such as if you haven't had your job for very long. Even if you are able to secure one of these personal loans, you'll often pay higher interest rates if you have less-than-perfect credit. This is because the lender's risk is a lot higher than if they had some of your personal property to secure the loan, so in order to lend to individuals with lower credit scores, these lenders generally have to charge higher rates. This helps them avoid losing as much if the borrower defaults.
What is a Collateral Loan?
There are many types of collateral loans. A collateral loan is a loan that is secured by something of value. If you have a car loan, that is a type of collateral loan. This is because auto loans are secured by the value of the car, hence why the lender can repossess the vehicle if the payments aren't made. A secured credit card is a credit card in which you deposit money in a savings account that you can't touch; then, if you default on your credit card, the credit card company will keep the money in the account to recoup their losses. There are even collateral loans in real estate; if you have purchased a home with a mortgage, it is a type of collateral loan, since a mortgage lender can foreclose on a home and sell it at auction to recoup some of their money if the mortgage is defaulted. Car title loans or "auto equity loans" are also financial products that require you to use your vehicle's value as loan collateral, and if you default on the repayment terms, you're at risk of losing your car to repossession.
Of course, these loans are a bit different from a collateral loan from a pawn shop, but there are some similarities. A pawn shop loan is yet another loan type that uses collateral, and you can borrow everything from smaller to larger loan amounts with one of these loans. Unlike with many other types of collateral loans, however, we don't care about poor credit...at all. Pawn shop loans are considered a great bad credit product because we don't care about your previous financial situation. In fact, we don't even check credit, and there isn't a loan approval process for our loans, either! Take out a loan on engagement rings, gold jewelry, and much more with ease by working with the best pawn shop in Virginia Beach, Hilltop Pawn Shop & Jewelry!
Top Benefits of Taking Out a Collateral Loan at a Pawn Shop
Now that you know a little more about how collateral works, you might be wondering if a collateral loan from a pawn shop is right for you. These are a few reasons to consider this type of loan when you need to borrow money:
● You can use various items of value to secure a pawn loan, so you don't have to worry about things like putting your car or home at risk, which would be the case with a home loan, second mortgage, home equity line of credit, or car title loan. Instead, you can use things like jewelry, musical instruments, or your watch to secure your loan. We accept a wide range of items for our collateral-based loans, although of course, bringing in your best collateral is going to help you borrow the most with this type of short-term loan.
● There's no obligation! We will look at your item and give you an estimate of the loan amount you can get with us on the spot. If you don't want to accept our offer, you don't owe us anything!
● You get to choose how much you want to borrow! Your loan amount is based strictly on the value of the collateral that you bring in. The average pawn shop loan is around $150, but we loan so much more than that if you need it. Bring in more valuable items and borrow more money, up to $50,000! On the other hand, if you only want to borrow small amounts of money, we can help with that as your local pawn broker.
● We don't care about a low credit score, lack of bank account, lack of employment history, or low income. There is no loan application process. Your ID and collateral get you approved!
● Unlike with payday loans, title loans, and many loans that are designed for people with poor credit, we don't charge the outrageous interest charges that you've probably seen elsewhere. In all 50 states, pawn loan interest rates are set by state law. Avoid the high interest rates by borrowing from us instead!
● Getting a pawn loan is incredibly fast. It just takes a few minutes to do an item appraisal and make you a loan offer based on your item's value. Since we don't have to look over loan applications or check your credit record, we're able to make you a loan in no time. Come to us any time you need easy and fast cash on the spot!
● At our pawn store, we offer extension options if you cannot repay your loan during the initial time period listed on your pawn ticket. Just come in before your due date, let us know that your financial needs require you to get an extension, and we'll handle it for you. All you have to do is pay the existing interest rates and fees.
● Work with a local business! There's no need to look for online lenders. Instead, visit a trusted local Virginia Beach pawn shop, Hilltop Pawn. Our friendly staff members will help you with all of your pawn transactions when you need quick cash!
● Your credit is never affected if you default on a loan! We never report to the credit bureaus. Instead, we simply keep your pre-owned items to recoup the loan funds...that's it!
Visit Hilltop Pawn Shop & Jewelry for a Collateral Loan from a Pawn Shop
Now that you're interested in the idea of taking out a pawn loan, you are likely looking for the best places to go for one of these loans. If you're looking for the best pawn shop in the Hampton Roads area, we recommend that you visit our superior pawn and jewelry store, Hilltop Pawn Shop & Jewelry. We are known by many in the area as being a great place for taking out pawn loans.
We have been in the business for years, and we're well known for offering great customer service and a great deal. Come see us for a high value loan on Rolex watches, diamond jewelry, and much more. If you're looking for an awesome pawn shop that is more of a jewelry store than anything, we're the best option for that, too. Come get the best deals on pre-owned jewelry that's in good condition, or sell your jewelry for cash today. You can save tons of money over paying retail prices for jewelry, or you can get paid the best rates for unwanted pieces that you want to sell. Plus, of course, we're your go-to spot for a no credit check loan. Hilltop pawn Shop's customer service is well-known around Hampton Roads, and we're ready to make you a happy customer, too.
Helpful Tips for Your First Pawn Shop Collateral Loan
Hoping for a successful, good experience when taking out a pawn shop loan? Following a few simple tips will help you borrow the most money and have the smoothest experience!
Visit the Right Pawn Shop for Your Pawn Shop Loan
First of all, it's important to choose the right pawn shop when you need to borrow extra cash. If you're in Virginia Beach, Hilltop Pawn Shop & Jewelry is the ideal place to borrow. We're a popular place for taking out loans because we offer higher loan amounts, have the best customer service, and provide the smoothest experience. You can always count on us for a fair evaluation of your collateral and an easy loan process.
Understand How a Pawn Shop Collateral Loan Works
It's important to truly understand how pawn shop collateral loans work. You will have to bring in collateral, and you will have to leave it with us until you repay your loan. This means you should bring in valuable items that you can go without until you're able to repay, and you may want to be careful about bringing in items that have a lot of sentimental value, just in case.
Choose the Right Collateral for Your Loan
As a high end shop, Hilltop Pawn Shop is able to offer the biggest instant cash loan offers for high-end items, such as the perfect engagement ring or a Rolex watch. Of course, we do offer pawn loans on assorted other items of value, too. Bring in the more valuable items (like diamond rings or pure gold bars) if you want to borrow more money, but other, less valuable items can be a great option if you're only looking to borrow smaller amounts.
Ask Questions & Chat With Our Staff
Our friendly staff here at Hilltop Pawn Shop are more than happy to assist you with the entire process of borrowing money from us, whether it's your first time taking out a pawn loan, or if you have worked with us many times before. We are one of the most reputable pawn shops out there, and we always want to be fully transparent. If you have any questions before, during, or after taking out a loan with us, don't hesitate to ask, whether in person or over the phone. Making sure you have a great experience when borrowing money from us is our number one priority!
A cash loan from a pawn shop shouldn't be your last resort. Instead, a loan from your local store -- Hilltop Pawn Shop & Jewelry -- should be your first choice when you want to borrow the highest dollar amount in the easiest way possible. Just grab a piece of jewelry or some other item of value from your home, and come see us. We're looking forward to assisting you with your loan.
How Pawn Loans Work
Here at Hilltop Pawn Shop, we understand that anyone can suffer from cash flow issues. If you’ve found yourself running a little short on cash, we are here to help.
Our pawn loans are SHORT-TERM LOANS THAT ARE REGULATED BY VIRGINIA STATE LAW. Basically, you will need to bring in an item of value -- or multiple items -- for us to hold as collateral.
Then, BASED OFF OF HOW MUCH THE ITEM IS WORTH, WE'LL GIVE YOU A LOAN OFFER. If you choose to accept, we can quickly and easily write up a loan contract and loan you the cash.
All you need is your state-issued ID to prove that you’re at least 18. WE DON'T CHECK YOUR CREDIT, and we accept a wide range of items as collateral for our pawn loans.
After you take out your loan, you’ll have a few different options. Your first option is to come back in and pay off your loan within the 30-day loan term. You’ll pay back the amount that you borrowed plus a small loan fee and interest charge that is regulated by Virginia state law. Then, you’ll get your item back immediately. If you aren’t able to pay off your loan in 30 days, it’s not a big deal. All you have to do is bring in the amount of your interest and fees. Once you pay this sum, we’ll renew your loan for another 30 days to give you more time to come up with the cash.
Lastly, if you are unable to pay back your loan for any reason, or if you decide that you just don’t want your item back, you don’t have to do anything. We will keep your item, and you won’t have to worry about paying back the loan. This will not have a negative impact on your credit, and you will not have to worry about us calling and hassling you about the money. You can also come back to us anytime that you want to take out another loan.