Why Collateral Loans Can Be a Great AlternativePawn loans are inexpensive cash loans that are given to you in exchange for an item held as collateral. The amount of money you receive depends on how much your item is worth as well as on the specific pawn shop you go to. You agree on a set time to pay your loan back by, and when you finish paying off your loan, your item is returned to you. Payday loans, on the other hand, are loans made to you against your next paycheck. Their interest rates tend to be high, and you usually have a short period of time to pay the loan back by.
At Gems N' Loans Temecula, your credit will not be impacted and you are likely to get an interest rate as low as 2%. You are not required to provide any credit information to get a loan from a pawn shop. If you default on the loan, the shop keeps the item you gave them as collateral.