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Payday Loans, Personal Loans, Pawn & Collateral Loans: What You Should Know

For most people, going to a relative or asking a friend when they need some extra money is often out of the question. So what do when you know that you need some money quickly, but don’t know where to go or what type of loan to get? Today, let’s explore the major differences between three of the best everyday options for loans: Payday Loans, Personal Loans and Pawn & Collateral Loans. Together, let’s find out which of these options you qualify for, and makes the most sense to you based on yours needs.

Payday Loans Have Their Restrictions

You’ve heard the ads on radio and have seen countless commercials on your sick-days, advertising Payday Loans. What makes them so attractive is that often you don’t need much in order to qualify. You provide the lender with your social security number, your state-issued ID, your source of income and can usually qualify. But you didn’t think it was that easy did you? Payday Loans have their restrictions and limitations. For instance, in California, a Payday Loan usually offer a 14-day term, based on your pay-day, and often come with a 400%+ APR, with some companies charging much more.

What this means to you is that you’d owe some serious interest and finance charges on your next payday. Couple this with some of the fees Payday Lenders charge (ranging from simple application fees, to even buying a branded debit card they deposit your loan on). Taking the APR and fees into consideration, other major restrictions for Payday Loans include both their payback period, which is usually 14 day (unless you’re really looking to stretch that APR and tack on more fees), as well as the maximum loan amount available by law. In California, the maximum you can borrow from a Payday Loan Center is only $255 dollars, which brings us to other loan options.

Personal Loans Are Harder to Get

A personal loan is a great way get some extra cash in your hand. They usually come from a very secure and FDIC-backed bank, lender or credit union.  You can often get approved for a much larger sum than going to a Payday Loan Center. But given that these loans often are attached to these larger, more secure entities, they are also tougher to get approved for. It’s difficult to get a Personal Loan without the right credit, especially if you’re asking for a substantial amount of money. We often meet people who say they need more than the $255 max amount allotted for Payday Loans, but less than a thousand dollars. These same folks say they got turned away on a personal loan from their bank or credit union, even though they’ve been with the branch for decades.

It’s because personal loans are tied to your credit history and FICO score, as well as a number of other factors. These can include your debt-to-income ratio (what you owe on a month-to-month versus what you make) as well as your current salary or hourly wage. and if you’re like a large percentage of Americans who suffered during the recent Real Estate Crisis, you can usually consider yourself written-off on being considered for a personal loan. A lot of these banks were the same ones that repossessed homes during this tough period. To this point, some banks have gone so far as to give personal loans or a line of credit to a consumer, only to turn around and charge them upwards of 29.99% APR on that same loan. This effectively costs the customer hundreds or more each month in finance/interest charges…

Collateral Loans (also known as Pawn Loans) and How They Are Different

At Jewelry & Loan Pro, we meet a lot of people every day that are looking for a loan and aren’t sure how to go about getting one before stepping into our store. We understand that it’s not easy when you need a loan and have been turned down by your bank or credit union. After all, the maximum loan amount at the Payday Loan Center isn’t enough to cover your immediate needs. At Jewelry & Loan Pro in Tustin, CA, we offer low-cost secure loans for your valuables.

Some people still refer to these as Pawn Loans, but there’s a lot of factors that separate us from your traditional pawn shop in Orange County, CA.

First off, our team has been trained extensively and we’ve been doing this for over 25 years. Secondly, we’ve seen more high-end fashion, designer handbags, engagement rings, fine art from various eras, silver, gold coins, precious metals, estate jewelry and collectibles in the last year than most shops see in their entire lifetime. We take time to appraise your valuables in-house, and with care. Third, our reputation speaks for itself — we employ a master jeweler with over 30 years of experience. We even have a graduate gemologist with over 25 years of experience. Both are well-known for their honesty, integrity, accuracy and attention to detail.

If You’re Looking for a Loan in OC, or Want to Sell Your Valuables, Jewelry & Loan Pro Can Help

We’re a licensed pawnbroker and historically offer higher values for your items than our competitors. You bring us your valuables – whether it’s a vintage or contemporary watch, diamond ring, designer handbags or luggage, fine art, vintage & estate jewelry or other collectibles, or precious metals such as gold, silver or platinum, and after a quick & honest appraisal, you can choose to either pawn your item for a collateral loan, or to sell it to us. Our team of highly-trained and sought-after staff members know that it’s not always easy to part with your valuable items. We always take the time to educate our customers on how our process works and what the best option is for their specific situation.

If you’re looking to sell your watch, jewelry, collectibles or other valuables, rest assured that you’ve come to the right place. If you’re looking to get a secure collateral loan (pawn loan) on your valuables, we’ll also go out of our way to make sure you’re comfortable with your terms and monthly payments. We understand that every situation is different. Whether  you need just a small amount of money, a large sum, or aren’t sure about whether you want to pawn your item or sell it outright, we’ve been in the industry long enough to weigh your options and make the right decision based on your needs. For more information on the differences between a collateral loan (pawn loan) versus selling your item, you can read more about Collateral Loans and the key differences between getting a loan vs. selling your item by clicking here.

2017-01-30T14:25:24+00:00 January 13th, 2015|Uncategorized|