Pawn shop loans for unemployed tenants with poor credit provide a way of dealing with a short-term financial emergency. Non-homeowners, especially when there are past defaults and delinquencies, often find it extremely difficult to borrow money. You need to offer the lender non bricks-and-mortar collateral. If you require a way to repair your auto so you can get to work or pay the rent to avoid eviction, a pawn shop loan for bad credit could offer a temporary solution to your financial needs.
There are no credit checks during the application process, they’re available for any purpose and are paid in cash. There isn’t an annoying wait for cash loans for tenants from a pawnbroker as the transaction can be handled from start to finish in a matter of minutes. This is important when your need is urgent.
How to Get an Unemployed Tenant Loan from a Pawn Shop
- Provide collateral, such as gold, silver, watches, art work, automobiles, whole life policies or electrical goods, to secure your fast cash advance. Although you retain ownership, the item will be securely stored by the pawnbroker until the principal and interest have been cleared.
- This item will be professionally assessed and you’ll be able to get a loan for unemployed tenants for 30% to 50% of the valuation figure. This ensures there is sufficient equity to cover any interest. It can also be useful if you need to renew the agreement at the end of the term.
- You must provide two forms of identification to prove your identity.
- After signing the agreement, you’ll be handed your cash and a receipt.
- At the end of the borrowing term, you hand over your receipt and pay off the balance. Your collateral will then be redeemed and returned to you.
- If you fail to comply, the item can be sold at the pawn shop to clear the advance.
How Much Does a Pawn Shop Tenant Loan for Unemployed People Cost?
Rates can and do vary, but you should expect pawnbroker loans for tenants to accrue about 25% interest per calendar month. This means that, if you borrow $500, you should expect to pay about $625 ($500 principal and $125 interest) to redeem your collateral.
Subject to equity, you may be able to renew the agreement. Talk to the pawnbroker before, not after, the redemption date to avoid the danger of the item being sold. It is important to appreciate that interest continues to accrue and this makes it even harder to pay off the outstanding balance.
Advantages and Disadvantages of Pawn Shop Loans for Unemployed Tenants
Although an unemployed tenant loan can help you out of a short-term financial hole, interest accrues at a fast rate. If you are finding it difficult to pay the bills this month, how will you cope the next month? The pawnbroking industry is built on the back of repeat business and this is why.
If you do want a bad credit tenant loan, it is important that you only borrow money for the right reasons and have a way to repay the debt. Unemployed loans for tenants can become a form of financial entrapment, especially if your circumstances don’t change relatively quickly.