If you think a payday loan is an answer to your cash shortage, get ready to pay up to 400% interest for your money.
Luckily, there are other ways to get cash now.
Fast Cash Choices
If you find yourself strapped for cash and need to get it quickly, there are a few options.
These are short term high-interest loans. You don’t need a credit check, but they prey on those who need help most. You can quickly end up underwater and owe thousands of dollars to repay a small loan.
Selling your item online isn’t an efficient way to get cash now. It takes more time than selling at a pawn shop or getting a payday loan. Online sites like eBay charge fees to sell your item.
If you’re going to sell your item, try selling at a pawn shop.
Getting a bank loan is an option to get cash, but it takes much longer than some of the others. The bank loan process requires extensive paperwork such as income verification and tax returns. Getting a bank loan means that you will be on the hook to repay it for several years.
Your interest rate for a bank loan will be very high unless you have a good credit score. If your credit is less than 600 you will also be very limited in how much money you can get. Trying to find a bank to approve a loan takes credit checks, and each credit check hurts your score.
Use a Pawn Shop to Get Cash Now
Pawn shops can loan you money while keeping your item as insurance that the money will be repaid. If you don’t return to pay for your item, they keep it and resell it. There is no hit to your credit score for a “default” if you can’t pay the loan back.
Pawning the item means that you can reclaim it within a certain amount of time. There is a nominal fee or interest added to the price of the item when you buy it back. Pawning is an excellent choice for quick cash without parting with a valuable item.
Pawn shops also buy items outright. You can sell nearly anything to a pawn shop for quick cash:
- Power tools
- Precious metals
If you need to get cash now, pawning or selling at a pawn shop is one of the best options you have. You can borrow against the value of an item without having to part with it, and you will get your money on the spot. There is no credit check or complicated paperwork.
Choosing the Right Pawn Shop
Not all pawn shops are created equal. You will want to do some research on your local pawn shops to make sure they treat customers fairly. Read the reviews for each of your local shops.
If you need to get cash now, check out these tips for choosing a reputable pawn shop.