Payday Loans Vs Pawn Shops

There inevitably will come a time when you find yourself just a bit short of cash and in some pretty desperate need of it. When you come up short like this do you ever find something that you can live without for a while and run off to a pawn shop for some fast cash to ease your financial pains?

If so then pay attention to this article because there is a better way to get that fast cash that you need without having to part with something of value to you. You see, the main problem with a pawn shop is that you will never get a loan for the full value of your product.

With a payday loan you will get exactly the amount of cash that you desire and just repay it plus a finance charge. With a pawn shop you will get whatever the guy is willing to give you for it which may or may not be enough to cover your needs and you either take it or leave it and then pay a finance charge on that amount.

When you use a pawn shop you put your property at risk. That is right, if you cannot pay at least the finance charge on the due date then your item will become the property of the pawn shop and it will be sold for much more than the amount that you were loaned on it.

With a payday cash advance loan you will not risk any of your physical property. There is no collateral required to get a cash advance loan. You simply apply and provide verification of age, employer and bank account. Then you get the money needed with no collateral.

Some lenders may require a post dated check that is dated for the due date. This is security for the lender because if you don't show with your payment they will simply deposit the check and then it's on you to repair the damage if the funds are not there.

The finance charges for a payday loan are similar to that of a pawn shop. Pawn shops usually give you a month to repay while a Payday loan is usually due on your next payday but can be as long as a month.

Both work similarly as far as extensions go. If you can not repay the full amount of the balance on its due date then you can just pay the finance charge and have the due date extended until your next payday with a cash advance or for another month with a pawn shop.

Pawn shops have their place and can be useful especially if you have some property that you want to sell outright. They will usually give you more money for an item if you sell it to them rather than pawning it to them. This way they do not have to hold the item, they can immediately put it up for sale.

But if you prefer to keep the things that you already own and still get the cash you need when you need it then a payday cash advance loan is for you.