In 2012, the Christian Science Monitor reported that 30 million people in the United States don’t have access to banks. They have no savings or checking account and cannot qualify for a bank loan. When these people need additional cash quickly, they have few places to turn to. Pawns shops have stepped in to fill this void. This is not a new service. Until the 1950s, pawn shops were the places that most Americans used to get extra cash fast. Instead of basing the amount of a loan on a person’s credit rating or income, they require collateral for quick loans in Chicago area.
When a person enters a pawn shop, a pawnbroker will appraise their item immediately. Pawn brokers have to store the item, so they prefer smaller items. Since they hold the item for up to 120 days and then may have to sell it, they also prefer that items used to secure quick loans in Chicago have a stable value. Jewelry, small electronics, and tools fit these criteria. Once the pawnbroker and person agree to the value, the pawnbroker fills out a simple form. It includes the person’s name and address, the item, the amount of the loan, the interest rate and any fees. The person signs it and gets their money.
Even people who can qualify for bank loan may opt for Quick Loans from pawn shops. Taking out loans can affect their credit rating, and there is a paper trail that can be easily followed. Pawn loans are confidential and never show up in a credit report. Applying for a bank loan is time-consuming and complicated. Even a person with stellar credit may have to wait weeks for a full review and approval. They appreciate the speed with which pawnbrokers are able to give them cash. If a person is unable to pay back the pawn loan, the pawnbroker takes possession of the collateral and closes the loan. The borrower does not have to face unpleasant calls from a collection agency. They also do not have to worry about skyrocketing interest rates and penalties that they will never be able to pay off.
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