Online Pawn Shops - The good and the not so good about the loan

What do online pawn shops have to offer & are the loans competitive with other loan products?

Loan.co.uk offer online pawn shop loans

However in the tradition of loan.co.uk we will not try to sell you anything.

We will give you the facts of the online pawn shop good and bad so you can make up your own mind as to whether this sort of loan fits your circumstances at the moment......and that is an important point "at the moment" because these pawn shop loans are designed to be short term loans.

The Good about online pawn shops

• Pawn shop loans are probably faster than any other sort of loan from application to when you receive your money.
• No status checks on pawn shop loans, so if you have had a problem in the past, this is one of the few ways to obtain a loan.
• No embarrassing visits to old fashioned pawn shops.
• No long forms or loan agreements to fill out from an online pawn shop.
• You retain ownership of your item (pledge) and the pawn shop holds it for you.
• If you use the pawn shop loan correctly and only use the money / loan for the short term it is a cost effect short term loan.
• No penalties if the pawn shop loan is repaid early.
• Lower rates than most high street pawn shops.

The Bad about pawn shops

• If you take this pawn shop loan for an extended period then the interest is comparatively high.
• If you don't pay the pawn shop loan back you will lose your pledged item as it will be sold (the cash balance will be repaid to you).
• If you need to extend your pawn shop loan term for an additional 6 months then you need to repay the outstanding interest on the pawn shop loan at this time.
• You lose access to your pledge item as it is held by the pawn shop until the loan is repaid