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Pawnbrokers once acted as the only means of support for the helpless or poor people during hard times. However, with years, more and more people recognised the benefits and convenience of the services offered by high street pawnbrokers. And today, individuals from different walks of life turn to pawnbrokers to raise some fast cash during short-term monetary needs.
High street pawnbrokers are not the relics of days past. They continue to serve as a reliable lifeline for many borrowers, especially those who cannot access mainstream credit lending.
Today, more people are turning to pawnbrokers because it is more straightforward to get a pawn loan than other traditional loans. If you want to secure a pawn loan from a pawnbroker, you only have to give any valuable item as collateral to your pawnbroker. However, the collateral or pledged asset can be anything of value. But most people commonly opt for a loan against watches, diamond and gold jewellery.
Now your pawnbroker will evaluate your pledge’s value and offer you a cash loan based on the value over an agreed time. The maximum tenure of a pawn loan is usually six to seven months. However, one of the most significant benefits of pawnbroking is that –
You can retrieve the loan any time within the contract tenure and redeem your pledge item.
What if you fail to repay your loan by the deadline? Your pawnbroker can either help you to renew your contract or sell the pledge. Unlike payday loans, pawnbrokers allow settling their loans quickly without building up impossible debt levels for customers.
Borrowing credit from a pawnbroker is undoubtedly fast and convenient. Moreover, in terms of interest rates, pawnbrokers provide a much better rate compared to payday lenders. Another significant advantage of pawnbroking is that pawnbrokers do not carry out any credit check before approving a loan. This is because they lend money based on items.
However, the Financial Conduct Authority (FCA) regulates the pawnbroking business in the UK. Every pawnbroker has to meet and maintain stringent rules of conduct and solvency. Moreover, customers who have not received fair treatment are left only after a remedy.
Customers entering into a pawn loan agreement are entitled to a 14days cooling off period. This enables you to change your mind and deny the contract with no penalty up to 14 days from signing the agreement.
Interestingly, according to FCA rules, every authorised lender providing unsecured access to money has to carry out a creditworthiness assessment of the consumer. But pawnbrokers do not need to conduct this as their credit depends on a valuable asset.
So if you are looking to raise some fast cash and own anything of value, you can make the best decision by getting in touch with any trusted pawnbrokers in London or any other big city. No matter if you have an emotional attachment to the item you use as collateral, you can get it back once you pay off the loan.
© 2022 The Luxury Hut is a trading name of Golden Cash Limited. Authorised and regulated by The Financial Conduct Authority for pawnbroking. Registered in England as Golden Cash Limited. Registered Number is 07309335. Registered office address: Treviot House, 186-192 High Road, IIford, Essex, IG1 1LR.
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