Collateral for a loan – how to secure a pawn loan
Collaterals like cars, gold, jewelry, diamonds, luxury watches or electronics can be used to secure a loan. There are 2 very popular types of loans using a customer’s collateral to secure the approved amount without extensive background checks:
- Pawn Loans
- Title Loans
A pawned item is named collateral. This pawned items are securing your loan amount. You can lose your collateral if you fail to repay. A pawn loan comes without an obligation to repay the loan. And a pawn loan can never effect your credit score, even when you fail to redeem. A collateral for a loan helps you to get a very fast loan without answering hundreds of questions concerning your financial situation. A collateral based loan is the perfect solution if you are in need of quick cash to cover unexpected emergencies. Furthermore there is no need to be employed to get a collateral based loan. Finally described a pawn or title loan is the fastest way to get very fast cash for your needs.
Collateral based loan in comparison with a payday loan
The first big difference between a collateral based loan and a payday loan is your required status of employment. A collateral based loan can be approved without an income. As the name suggests, employment is necessary to get a payday loan. Both financial solutions are strictly regulated by law with specified interest fees.
You can see that a pawn loan is much less expensive than a payday loan. Payday loan companies are often advertising to help you avoid coming into of death. But as you can clearly see this financial instrument can bring you into death if you need the loan longer than just for a couple of days. It’s a high risk to apply for a payday loan if you are not sure if you can repay the loan in time. A pawn loan is the perfect alternative to a payday loan because it’s constructed to serve longer loan periods up to 3, 6, 9 or 12 months, depending on the collateral you can deposit. Of course you have to pay for the interest rates every 3 months. But you don’t have to redeem the total loan amount. Using a collateral for a loan is a modern way to get some extra cash especially because you can also use items such as electronics, jewelry, gold, diamonds or watches to secure your loan amount.
Learn more: What is a pawn shop?
reDollar.com can offer you affordable interest fees than listed above. The interest fees we charge, are starting only at 5 %.
Gold, silver, jewelry and watches as collateral for a loan
Items like gold, silver or jewelry are great collaterals. Engagement rings, wedding bands, necklaces, pendants, luxury watches or even coins, bars, ingots or bullions can be used to secure a loan. A nice engagement ring can easily secure a small pawn loan up to $500 or even $1,000. But also pawn loans up to $100,000 can be approved if you own an engagement ring made from a famous brand like Tiffany or coming with huge diamonds or other valuable gemstones. Our company is specialized in serving pawn loans from $100 up to $100,000. Gold, silver or jewelry are more than welcomed to deposit as your collateral. Please also read how to pawn jewelry if you want to learn more.
Diamonds or gemstones as collateral for a loan
Beside diamond jewelry we can also accept loose diamonds or gemstones as your collateral to secure your pawn loan. Not only individuals are using reDollar.com to get a pawn loan. An increasing number of commercial clients are discovering the pawn loan as an alternative way to close financial holes. Jewelers or goldsmith are sending diamonds or gemstones to our labs to get fast cash. Access to bank based finance remains are a major barrier for many companies. A pawn loan can help you out of such a stucking situation.
Electronics as collateral for a loan
Small financial needs up to $1,000 can be easily satisfied by using a pawn loan. Look around and you see countless collaterals in your home. Your iPhone (also the second oldest version), your tablet, your laptop or your game console can be used as a collateral for a loan.
Collectibles and arts as collateral for a loan
Collectibles and arts can also be used as a collateral to secure a pawn loan: decorative collectibles, glass, porcelain, paintings, prints, knives, swords, militaria items, pens, trading cards, vintage advertising materials, autographs, clocks, lamps, metalware, photographic images or postcards. Almost everyone has items at home that are good to use as a collateral. Go ahead and look around.
You would like to get a pawn loan using your items as a collateral: don’t wait any longer, get started now!