Short Term Unsecured Loans from Pawnbrokers

Pawnbroking – Payday Loans and Cheque Cashing with No Credit Checks

Mar 1, 2009

As banks continue to restrict their lending, two of the UK's biggest pawnbrokers have recently reported higher profits and plans for expansion.

Pawnbrokers have been around for a long time, some sources cite China as the country of origin, others the Greek or Roman empires. Whatever the truth pawnbroking has come a long way, struggling in the process to throw off its rather grim and seedy image. Today a quick search online demonstrates that a slick and professional service is offered by some companies.

The National Pawnbrokers Association of the UK (NPA)

The National Pawnbrokers Association of the UK describes the service that its members offer as an opportunity for: “Ordinary people who may wish to borrow a small sum of money for a short period of time, very much like an overdraft." The advantage for many of their customers is that no credit checks on loans are carried out.

“Pawnbroking customers pledge property that they own and consider the loan simply turning their goods temporarily back into cash…” All of this is true but pawnbrokers now offer a staggering number of financial services regulated in the same way as other lending organisations.

It’s not unusual to find them offering, on top of their tradition lending, unsecured loans, payday loans, cheque cashing and log book loans, that is raising money against the value of a car. The Office of Fair Trading said: “Using a Pawnbroker…just another way of borrowing money.”

Pawnbroker Cheque Cashing

A cheque cashing service can be particularly helpful for those without a bank account or can’t wait until a cheque clears through a bank in the normal way. Of course charges will vary but from 2.9% seems to be about average.

Pawnbroker Payday Loans with No Credit Check

Payday loans are offered to people in full time employment, with a cheque book and cheque guarantee card. The amounts that can be loaned will vary, depending on a person’s salary. Many will recognise the scenario of running out of money a few days before their next salary is due and payday loans are geared to this market.

On the face of it £10 interest doesn’t sound very much but the APR is a staggering 295.3%

Pawnbroker Car Loans

Car loans are not the traditional loans made in order for someone to buy a car, they are loans made to a person who uses a car a security. There are a number of conditions but be warned the pawnbroker will keep the logbook although the car is left with the owner.

Pawnbroker Unsecured Loan with No Credit Checks

Pawnbrokers, without credit checks, can also offer unsecured loans of up to £750 – £1000.

Pawnbroker’s Interest Rates

Actual Percentage Rates (APR) do vary but are very high. Pawnbroker lending, while providing a valuable service for some should be considered as ‘last resort’ and very short term lending. It’s worth repeating the NPA's advice. Borrow “small amounts of money for a short period of time.”

This information is obtained from the sources listed below but is not offered as financial advice.

The copyright of the article Short Term Unsecured Loans from Pawnbrokers in Personal Loans is owned by Neil Gunn. Permission to republish Short Term Unsecured Loans from Pawnbrokers in print or online must be granted by the author in writing.