Pawn Loans vs. Payday Loans In Chandler

Pawn Loans vs. Payday Loans

Pawn Loans vs. Payday Loans
The differences between payday loans and pawns loans.
Chandler, Arizona

If you live in Arizona, you have a lot of options to get the money you need. You can apply for a bank loan, use your credit cards or get a personal loan. If you have a poor credit history, two of the most popular options for getting the cash you need are payday loans and pawn loans.

A pawn loan is vastly superior to a payday loan for many reasons. Here’s what you need to know about them both:

Payday Loans

Payday loans give you money based on what you are expected to make in a future check. They do not require any collateral, but you do have to provide your bank information. The reason is that if you do not make a payment or you make a late payment, the lender is authorized to debit it from your account. The lender could clear out your account whether you have the money or not, which could cause you even more financial problems. You could have to pay overdraft fees, or you could be without the money to pay your rent or other important bills.

If you don’t make a payment, payday lenders can also report it to the credit bureaus. You could take a big hit to your credit if you find yourself unable to pay.

Finally, payday loans charge excessive interest rates. According to Payday Loans Online Resources, a consumer advocacy group, payday loans can charge what amounts to 400 percent annual interest, which translates to about $15 to $30 for a two-week loan of $100. That may not seem like much, but it adds up the more you borrow. You could pay interest of $150 on a $500 loan.

State laws limit how much payday lenders can charge in interest and how much principal they can loan, which is usually no more than $1,000.

Pawn Loans and Payday Loans Compared | Pawn Now

Pawn Loans

Pawn loans are much less risky and much more affordable. When you get a pawn loan, you are offering an item you own as collateral. The item is placed in safe keeping for the duration of the loan — usually around 90 days — and you get it back when the loan is paid. If you don’t pay the loan, you forfeit the item. However, the lender cannot come after your assets, and the transaction is not recorded on your credit report. The most you will lose is the item you pawn. It’s a surety for you and the lender.

You can even buy back the item you lost if it is still for sale.

One of the biggest advantages of a pawn loan is that it has a lower interest rate — usually around 10 percent or less. Pawn loans are also not capped, so you can borrow as much as you like.

Pawn Now in Arizona has the capacity to make pawn loans up to $1 million for everything from electronic equipment to aircraft. Stop in to our shop and find out why a pawn loan is a much better alternative to a payday loan.

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Pawn Now

Pawn Now Phoenix – 85043
691 W. Baseline Rd.
Phoenix AZ 85043
Phone +1 602 276-1664

Pawn Now Phoenix – 85022
14601 N Cave Creek Rd.
Phoenix AZ 85022
Phone +1 602 765-4444

Pawn Now Phoenix – 85019
4135 W. Indian School Rd.
Phoenix AZ 85019
Phone +1 602 442-2160

Pawn Now Mesa – 85207
8151 E. Apache Trail‎
Mesa AZ 85207
Phone +1 480 964-6666

Pawn Now Mesa – 85210
1145 S. Mesa Dr.
Mesa AZ 85210
Phone +1 480 668-1009

Pawn Now Chandler – 85225
1731 N. Arizona Ave.
Chandler AZ 85225
Phone +1 480 821-7296

Pawn Now Apache Junction – 85120
900 W. Apache Trail
Apache Junction AZ 85120
Phone +1 480 288-7296

Pawn Now Mesa – 85204
361 S. Lindsay Rd.
Mesa AZ 85204
Phone +1 480 777-7771

Pawn Now Scottsdale – 85257
7841 E. McDowell Rd.
Scottsdale AZ 85257
Phone +1 480 300-4653

2018-01-08T17:27:45+00:00 December 2nd, 2014|Categories: Arizona|0 Comments