Pickering Auto Pawn Loans vs. Pawning Valuables - Instant Loans Canada

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Pickering Auto Pawn Loans vs. Pawning Valuables

Jan 31, 2014

Whenever you are in an emergency financial situation, you will be forced to resort to ways and means you have not thought about before. For instance, you might think about resorting to Pickering auto pawn loans or pawning some of your valuables in order to generate cash. Although there are so many other strategies available to generate quick cash, unfortunately these are the only two methods available for those having bad credit ratings. And if you do have a poor credit, you need to consider which between these two is best for you.

Pros and Cons of Auto Pawn Loans

Pros

  • Quick cash solution. In most cases, applications to auto pawn loans are granted in less than 30 minutes or on the same day of application. So if you really need urgent cash, Pickering auto pawn loans can be a great solution.
  • No credit check and income evaluation. Unlike other financial aids which require borrowers to submit an employment status record and credit rating report, auto pawn loans don’t. This is the reason why they are very appealing to bad credit borrowers.
  • Large loan amount. Auto pawn loans are dependent on the value of the vehicles used as collateral. Hence it is possible to be able to borrow cash as much as $25,000 as long as this is the equity value of your car.
  • You get to use your collateral during the loan term. Lenders will only keep the car’s title not the car itself.

Cons

  • The biggest flaw when it comes to auto pawn loans is repossession. It is very crucial for every borrower of auto pawn loans to pay their monthly obligations on time because in cases of constant late payments and over dues, the lender can just automatically take your car and resell it to recover the money they loaned to you. 

Pros and Cons of Pawning Valuables

Pros

  • Quick cash. Just like Pickering auto pawn loans, you can generate quick cash when you pawn your valuables.
  • You can pawn different valuables. Unlike auto pawn loans, you can pawn not only your car but other valuables like you jewelry, smartphones and pricey possessions.
  • No credit check. Since pawning valuables is a secured form of financial solution, you can expect that you won’t be required to submit a credit report.

Cons

  • You may lose your valuable in case you default. The moment you fail to pay your dues, the pawnshop can automatically resell your valuable so that they can recover the amount loaned to you.
  • Lenders will hold the valuable. Whatever valuable you pawn, expect that you have to part with it until you completely repay your loan.