Pawnbroking vs. Short Term Loans: The Facts
When in need of some extra cash, there are multiple ways in order to do so, including Pawnbroking or short term loans. The decision between the two can be overwhelming, especially if you’re unsure about what one is right for you.
Pawnbroking
If you’re someone who owns valuable items, you can get some cash for them. Don’t worry- Pawnbroking doesn’t mean you’ll need to sell. Simply bring your items of worth into Cuttings where they will be valued, then an agreement will be made on how much you can borrow against it. Once agreed, Cuttings will keep you items safely stored away and you will have the cash to yourself within minutes!
Pawnbroking often works at a six month basis, meaning you will have up to six months to repay your loan back to Cuttings. You’ll be able to spread the costs monthly, making it an affordable way to borrow money. With Pawnbroking, you’re also able to make small payments at any time, and thus reducing the amount you owe. Paying it back slowly also reduces the amount of interest you’ll need to pay, making it a win-win!
If you’re worried about taking out a Pawnbroking loan because of a poor credit score, there’s no need to worry. With Pawnbroking, there are no credit checks involved, making it a great solution for anyone.
Short Term Loan
Though suddenly finding yourself with a lack of money can be daunting, there are options, including taking out a loan. Whether you’ve realised you have a large bill that need to be paid or you need that extra cash for an occasion, a short term loan could be the answer for you.
A short term loan is scheduled for repayment in less than a year. Often, your monthly repayments will come straight out of your bank account, perfect for those who are worried about remembering to repay. However, paying back monthly rather than when suits you could cut into your cash flow.
Unlike Pawnbroking, short term loans come with factor rates rather than interest rates. A factor rate is a number that, when multiplied by your total loan amount, lets you know the total amount you’ll be paying back to the lender.
Still Don’t Know?
If you’re still unsure, don’t worry! Visit us at Cuttings today and we can help you to understand more about Pawnbroking and short term loans, and what works best for you. We won’t put you in a difficult position by lending you more than you need or asking you to make payments you can’t afford.
Get in touch with a member of our extremely knowledgeable staff by visiting our contact page or by giving us a call on 01843 584550.