The world of pawnbroking has changed significantly over the years. Today, pawn loans are recognised as a more secure and viable option of borrowing than it was ever before. While pawn shops turned up over 3,000years ago, pawnbrokers had gained itself a prejudiced reputation in the past. For decades, the industry has been negatively portrayed in media, considering it as an unfavourable and expensive way to borrow money. However, its image has significantly altered over the last twenty years or so.
Indeed, today more and more people are turning to high street pawnbrokers London or ‘pawnbrokers near me’ to avail of short-term loans or sell luxury assets and raise instant cash. Consequently, trustworthy pawnbrokers in London or any other big city are working to make the process of pawnbroking simpler, more straightforward and convenient.
Unlike any other loan types, it is more comfortable and more secure to take out a pawn loan from high street ‘pawn shops London’.
Three Basic Things You Need to Apply for a Pawn Loan
While there may be many ways to turn up some quick cash, a pawnbroking loan is ideally the best option to raise some money immediately with affecting one’s credit score. With a pawn loan, you can get instant access to money in exchange for anything precious such as a diamond ring or a Rolex watch pawned with your pawnbrokers London.
For those who are looking to apply for a pawn loan, here are three basic things that you would need to get your loan approved:
The Legal Owner of the Item
A pawn loan cannot be typically applied on behalf of anyone else. If you are the legal owner of the asset you are looking to borrow against, make sure that you are present during the application process.
Proof of Identification
Although a pawnbroker typically lends money based on the actual value of the asset you leave as collateral, customers are only asked to provide proof of Identification to go ahead with the transaction. This standard procedure helps high street pawnbrokers in London or anywhere in the UK to protect them as well as their customers from fraud or financial crime.
A precious asset to pawn
If you want to take out a pawn loan, you have to bring anything valuable to keep as collateral. Although the items accepted as collateral usually vary from one pawnbroker to another, some assets such as luxury watches, diamond and gold jewellery are more commonly pawned and also, universally accepted. However, you can pawn more one item at once with trustworthy pawnbrokers London or ‘pawnbrokers near me’.
How does pawnbroking work?
When you visit a pawnshop in London to take out a loan, the pawnbroker will inspect your asset precisely and determine its actual value based on its condition, current market price and other relevant factors. He/she will provide you with a cash loan offer right away for a particular term and of course, without carrying out any credit checks. The maximum tenure of pawnbroking loans is usually six to seven months.
If you accept your loan offer, your pawnbroker will give you a credit agreement to sign that outlines the amount you have borrowed and what the repayments are. Once you sign it, you will receive a pledge receipt as a part of the deal. Here is the best part:
You are entitled to retrieve your collateral at any time within your loan term or after the term expires by paying off your original loan amount and the interest due. However, during your loan term, your asset will be stored in specialised holding vaults that are entirely insured and safe.
Trustworthy pawnbrokers London usually offer 14days cooling off time to come in after your contract expires and draw out the agreement, paying off the interest for the loan period and retrieving your asset. If you fail to redeem your asset within the time mentioned above, your pawnbroker will either choose to sell your collateral to recover the cash or, may help you in renewing your loan.
You can acquire a new contract and an additional seven months to pay back, by repaying the interest of your original loan term.
Make the most out of your assets
If you are looking to raise fast cash but have a poor credit history, simply get in touch with your trustworthy local pawnbroker today. Unlike banks or other traditional lending institutions, high street pawnbrokers in Hatton Garden or pawnbrokers London do not depend on their customers’ credit score to approve a loan.
Your pawnbroker will examine your collateral and offer you a loan based on the item’s actual value. Moreover, you can pawn the same item again and again. But, while the value of some assets especially of precious metals like gold often fluctuates over time, you may not be offered the same credit loan amount every time you pawn it with pawnbrokers in London or anywhere in the UK.
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