There are many occasions where people need a loan, but they may not have the ability to go to the bank and apply for the type of loan they’re looking for. This may simply be because their credit score is so bad that banks won’t even entertain the possibility of approving such a loan. However, for people that have items that they can either sell or use for collateral, Quick Loans in Chicago, typically offered by a pawn shop, may be an excellent option.
Putting Up Collateral
The process of securing this type of loan is rather simple. A person may have to document the ownership of a particular item, but in essence, it is simply about bringing in a valuable item, having the item appraised. The lender will then provide a loan at about 60% of the value of the item brought in.
No Credit Check
The benefit is that if a person’s credit score is in the dumps, credit scores will not be a requirement for securing this type of collateral loan. Rather than a person’s credit score vouching for their ability to repay the finances that are borrowed, the item is used as collateral. This means no credit check, but it also means a person will need to repay the loan in order to retain ownership of the collateral.
Completing the Loan Repayment
When a person defaults on one of these quick loans, the item used as collateral will then become the property of the pawnshop. Because the pawnshop only offered a percentage of the value of the collateral item for a loan, the pawnshop is able to recuperate their costs and turn a profit. If a person repays the loan along with interest and fees, the collateral item will then be returned to them.
For people that need emergency cash for unforeseen circumstances, quick loans in Chicago are an excellent way to navigate around a credit score that simply would exclude them from receiving a conventional loan from a bank or another lending institution. If you’re in this particular situation and you don’t have good credit, but you do have things of value to use as collateral, you may want to check out a website like clarkpawners.com to get more information on the quick loan process.
