Pawnshop or Online Loan, Which is Better?

It has become easier to get quick loans with the use of online applications from various financial institutions. These quick loans can help people settle some emergency issues that need cash urgently. The emergencies may range from medical expenses, automobile expenses, school fees, rent, to other forms of activities that may require spending of cash.

Many institutions are ready to offer quick loans to people that meet their requirements. It has become easier to get fast loans with banks and other financial institutions, as the conditions have become flexible over time. You can search for quick loans online, and you will get favorable results and select from the ones that you can meet their requirements.

Where to go if you need money fast?

There are several places you can go to get emergency cash and settle financial needs that may arise suddenly. You will get some money faster, and it will require less stressful processes with the places mentioned below:

  1. Selling your investments. If you need quick money for unexpected expenses, you can get cash by turning over your investment for sale. You can reach out to a suitable institution to turn it over for cash. The investment options, in this case, may include shares, stocks, bonds, or insurance. You can use the money you get urgently to satisfy your immediate expenses. However, for this method it is necessary to have savings or investments. Unfortunately, not all people can afford it.
  2. Take an overdraft. You can request for an overdraft from your bank to enable you to meet up with your expenses. However, overdraft is usually followed by high-interest rates and failure to pay it can attract severe penalties. You will need a good credit history with the banks to be able to get an overdraft. If you have not paid your loans on time before and you are in default, you will not be able to apply for this method.
  3. Using credit cards. You can get credit facilities to pay for goods and services using a credit card. You can pay off debts when you have money, otherwise you will be disconnected from using the facilities in the future. But to get a credit card with a good limit, you need to have a high salary or a good credit history at the bank where you want to get the card.
  4. Online loans. Online loans are a faster way of getting emergency cash when you are short of money to pay for certain services. These online loans require a quick and easy process, which will enable you to get your money within hours. You do not need to provide any salary certificates, you can be self-employed, a student or a pensioner. This is very convenient and allows you to get quick money for all categories of Filipino citizens.
  5. Salary Day Loan. This kind of loan is suitable for workers who get a regular salary and can pay up the loan on the day they get their salary. Payday loan is easy to get if you meet the requirements that include being employed and having a regular salary. However, if you are self-employed, this is not the way for you.
  6. A loan from a pawnshop. This is the easiest and fastest way to get emergency cash with no documentation. All that is required by a pawnshop is that you get the necessary collateral for the loan, and you will forfeit that collateral upon failure to pay the loan. The insurance used for collecting the loan will have a higher value than one of the actual loan, and the interest rates are also higher. The downside is that if you don’t repay the loan you can lose your valuables.

How does pawnshop loan work?

If you need a quick loan and do not have any documentation to get a loan in the conventional institutions, then you can visit a pawnshop. Pawnshops are shops where you can get second-hand items, and they have cash on hand to loan to people. Pawnshop owners offer loans to individuals who need instant payment with a valuable piece as collateral.

The pawnshop will require you to drop an item of value, which will be evaluated, and offer a loan less than its estimated value. You get the cash in hand immediately and may go home. To get back your valuable, you will have to repay the loan with interest, which is usually high.

Why do people prefer online loans?

Online loans are popular for obvious reasons, for they may not be faster but safer. They are regulated, and you do not have to part away with your possession. People are not comfortable with a pawnshop, and their rates are too high for those seeking loans. There seems to be much distrust with pawnshops, and this is one of the reasons why people look at it as a back door to get loans. However, we recommend that you choose the lending method based on your needs and capabilities. It’s great that in today’s world there is a wide range of ways to get money into a loan.

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The upside of pawnshop loans

There are several advantages of using a pawnshop loan, which include the following aspects:

  1. They are easy to get, and you will not have to go through any lengthy process of documentation.
  2. All you need to get a loan with the pawnshop is valuable collateral that is above the value of the loan that is being requested.
  3. You are guaranteed an instant loan with pawnshop as long as you meet up with the collateral.
  4. There is no trace of the loan you collected from the pawnshop with no paper trail.
  5. You get cash on hand, which will enable you to meet your emergency needs.
  6. The repayment process is quite easy, and you get back your valuable upon completion of the loan payment.

The downside of pawnshop loan

Getting a loan from a pawnshop has its own disadvantages, and they include the following issues:

  1. They charge higher interest rates than any other loan.
  2. You will have to declare an item of much higher value than the loan being requested.
  3. Upon failure to meet the loan payment, you will lose your collateral, which is of higher value than the loan collected. You will lose more value than what you requested as a loan.

Popular pawnshops in the Philippines

In the Philippines, you can find lots of pawnshops, but we are going to pick the most popular ones where you can get quick loans. Pawnshops are especially popular in big cities, for example, you can easily find a quick loan pawnshop in Lucena city or Manila. They include:

Palawan Pawnshop

Palawan pawnshop is the most popular place for Palawan pawnshop cash loans. You get the lowest interest rate with the Palawan pawnshop loan all over the city. Loans at Palawan pawnshop have flexible requirements for clients, and anyone can get a loan quickly in one of their branches that spread all over the country. They are regarded as one of the best services you will get in the Philippines.

Cebuana Lhuillier

To get the money quickly, you can try Cebuana Lhuillier and enjoy great rewards. Customers get discounts and rewards for each process of a loan application on this nationwide pawnshop. They are easy to locate all over the country, and you can get fast cash for an emergency with little requirements.

Pawn Hero

For a more effortless and quick way to get your emergency cash, try Pawn Hero pawnshop for the best customer services in the Philippines. You can get the agents of Pawn Hero to come to your location to get your items for an appraisal for the loan. You do not have to visit the pawnshop to get your loan approved.

There are also some other popular pawnshops in the Philippines where you can access fast loans. Like the Cvm pawnshop salary loan for the employed Philippines to access quick cash. Other popular pawnshops in the Philippines include the Villarica pawnshop loan and the Аblaza pawnshop loan, where you can obtain loans easily with your valuables.

Alternatives to Pawning

Well, not everybody is comfortable when parting away with his or her value for cash if it is not necessary. This is because they may end up tossing their valuables when they fail to pay the loan back. If you look for something as an alternative to pawning to get quick money, you should try using online loans.

These are the best options you can use for an alternative to pawning. They are also easier, although not as fast as pawning. They are secured and usually involve top financial institutions that are registered and regulated.

What is the difference between a pawnshop and online loan?

There is a big difference between getting a quick loan from the pawnshop and an online loan. The differences can make a person to choose between one and the other in the preferences of their features. Some of the differences include:

  1. With a pawnshop, you do not need any form of documentation to get a loan. But for an online loan, you will be required to drop at least a form of identification, preferably a government identification card.
  2. An online loan does not require you to part away with any of your valuables, but with a pawnshop, you will have to part ways with a value pricier than the loan.
  3. The interest with an online loan is lower than that of the pawnshop loans.
  4. Online loan platforms are usually regulated by a suitable financial institution, while pawnshops are not.
  5. Pawnshop loans are much faster than online loans, for, with pawnshops, you get cash in hand instantly.
  6. With online loans, you may not need to go to their offices physically. On the other hand, with pawnshop loans, you have to make contact with an agent to get your items appraised.

Pawnshop Online Loan

Borrower’s documents

You need only ID You need an ID and some other documents depending on the requirements of the financial institution.

Valuable collateral

Needed Not required

Availability for the unemployed

Available

Not available

Service fees There are service charges and bail assessment fees.

Usually there are no additional charges.

Loan amount

Depends on the value of the deposit, you can get a large amount of money.

Average of 1,000 to 100,000 PHP

Rate of receipt of money

Instantly at the pawnshop counter

From 1-2 hours to a few days

Opportunity to get online You need to come to the pawn shop

You can borrow online or from a mobile application

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Written by | Modified date: Январь 29, 2020

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