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Writer's pictureGlenda Craddock

5 Common Questions about Collateral Loans in Virginia Beach

Collateral loans in Virginia Beach are a common choice. There are a few different lenders that can help you with collateral loans, and you may want to look outside of traditional banks and credit unions. Instead, you may want to look into pawn shop loans, which are one of the most common types of collateral loan. You can take out both small loans and higher loan amounts with one of our collateral loans, and getting a loan approval is easy. Even though you might have heard good things about these poor credit loans, you might still have some questions...and we'd love to help. These are a few common questions that we get about collateral loans in Virginia Beach. We've provided quite a bit of information on our website about collateral loans for educational purposes, but you are also more than welcome to give us a call or stop by our Virginia Beach pawn shop for answers to any questions that you might have!


Person sitting down, fanning out multiple $100 bills

1. What Are Collateral Loans at a Pawn Shop in Virginia Beach?

A lot of people wonder how a loan based on collateral works. This loan type is actually very easy to understand, once you take a closer look. You might have even taken out a collateral loan before without realizing it...for example, a car loan is an auto-secured loan, or a collateral loan. If you buy a car on payments and stop making your payments, the bank can repossess the car (the collateral). 


A pawn loan from a pawn shop is very similar. You bring in an item of value to secure the loan. If the borrower defaults, the lender gets to keep the item of value. However, unlike with car loans, your debt is actually forgiven...you don't owe anything, and your credit score is never impacted. You can also borrow from us again in the future with no problem, even if you have defaulted on one or more loans. This is a great type of loan if you have an item of value that you can bring to your local pawn shop when asking for a loan.


2. What's the Best Place to Get Collateral Loans in Virginia Beach?

If you are interested in one of these types of loans, a pawn shop is likely your best bet. Borrowing from a pawn shop is easier than with most financial institutions...we accept items of value as collateral that many lenders won't accept (like guns or jewelry). We also don't pull your credit report at all, unlike the average financial institution...even banks and lenders that claim to work with people who have bad credit generally have at least some minimum credit score requirement, or they may look at things like how long you've had your job or how much money you make.


If you're wondering which pawn shop in Virginia Beach you should visit for a collateral loan, we welcome you to visit us at Hilltop Pawn Shop & Jewelry. You can take out a larger loan amount from us than many pawn shops, depending on the type of collateral you bring in...in fact, we offer loans up to $50,000 if you bring in a valuable asset to secure the loan, such as a high-value Rolex watch. We are also a trusted local business, so you can feel comfortable sharing your personal information (although you only have to supply your ID) and leaving your high-value items with us, which we will always keep safe.


3. What are the Benefits of Collateral Loans?

You could be wondering why a collateral loan might be one of the best financial decisions you can make to meet your financial goals. Well, there are many benefits for borrowers. There's no loan application for a pawn shop loan, and we don't check with the credit bureaus, so you don't have to have good credit, nor do you have to worry about asking a friend or family member to co-sign on the loan for you. It only takes a few minutes to borrow money, there are extension options if you aren't able to repay by the due date on your loan agreement, and there isn't really a maximum or minimum loan amount...you can borrow between $5 and $50,000. You can pay better interest rates than with predatory payday lenders and auto title lenders, too, so it's a more affordable way to borrow money.


There are benefits to the lender, too. The lender's risk is greatly reduced because we secure the loan...since we have possession of the asset, this makes things less risky for us. This means we can loan to more people! Plus, we don't have to worry about a long formal application process, which makes things easier for us and for you.


4. Does Credit Score Matter With Collateral Loans?

With many types of loans -- even those that are advertised for people with bad credit -- a credit check is often needed. Many online title loans, personal loans, payday loans, and auto title loans do look at your credit score, even if they aren't as strict as the average bank. They may require you to have a bank account, or they may want to see proof of income, too.


At Hilltop Pawn, when we say your credit score and overall financial situation don't matter to take out one of our quick cash loans, that's what we mean. There's no credit check, review of documentation, or other hassle for you to worry about. Plus, your credit score is never affected, even if you default on your fast cash loan. Virginia Beach residents with all credit scores know that we are the best lenders to work with, period!


5. Can You Use Collateral Loans for Your Business?

Maybe you need some emergency cash for immediate cash needs for your business, or maybe you need a little financial assistance to help get your business up and running. Coming up with the amount of money that you need for your business can be challenging, especially if you're dealing with emergency expenses and have a low credit score. Although pawn shop loans might not be a good long-term solution for running a business, we can help you get the cash you need for first time costs or unexpected expenses for your business, all without you having to worry about credit decisions or other problems. You can borrow as much cash as you have collateral to support, and you can get fast money for anything you might need money for...whether it's for your business or personal needs. We are the reputable lender for all situations, and we make the loan process incredibly easy!


If you are interested in collateral loans in Virginia Beach, just visit us as Hilltop Pawn Shop. We can grant you a collateral loan today, no matter what your credit history is like. Our financial products are ideal for those who have less-than-perfect credit or just those who are looking for the easiest and fastest loan options. Get an immediate lending decision and cash for your financial issues today...come see us at Hilltop Pawn & Jewelry when it's convenient for you!



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