In urgent situations when you're looking for quick cash two main options come to mind - Pawnshop Loans and short-term Payday Loans. To dispell doubts and make the right decision you need to fully understand the difference between these two types of cash advance which seem quite similar at first sight. Find out their rates, terms, application and repayment details, compare the offers and apply for the suitable loan.
Instant Cash Pawnshop Loans or Payday Loans?
Pawn loans are cash loans given against a collateral item, like jewelry, electronics, instruments, bicycles, and more. The amount of cash given for a pawn loan depends on the store. Once you repay the loan, your item is returned to you.
Payday loans are loans given against a specific amount of money, depending on your typical earnings. They are high-interest loans to be repaid within 14 - 30 days, with your next paycheck.
Read more: Payday Loans.
What is the difference between Pawnshop Loans and Payday cash advance?
Compare the most important loan criteria of these two types of cash advance with the help of the data from the table below:
|
Criteria |
Pawn loans |
Payday cash advance |
|
Amounts |
$75 - $150 |
$100 - $1000 |
|
Terms |
30 days – a few months |
14 – 30 days |
|
Turnaround Time |
A few minutes |
1 – 2 business days |
|
Collateral or Guarantor |
Collateral, usually items like jewelry or electronics. |
None, unsecured |
|
Interest rates |
On average the APR is 5% - 25%, reaching 200% |
On average the APR is 400%, reaching over 1000% |
|
Application process |
In person |
Online and in-store |
|
Eligibility criteria |
|
|
|
Minimal credit score requirements |
None, any credit is welcome |
None, any credit is welcome |
|
Credit check of credit history |
Soft credit check, multiple applications may affect the history |
No credit check, no affect on the credit history |
|
Repayment |
On a due date a borrower comes to the shop to give back the loan plus interest and fees and takes back the collateral. |
The money is automatically withdrawn from a borrower’s bank account on a due date |
Pros & Cons of Pawnshop Loans and Payday Loans.
- Pawnshop Loans
-
Pros Cons - Quick and easy application process. You just bring in a valuable item to a pawn shop and apply for a loan.
- No credit check. As your loan is backed by a collateral you shouldn't worry about your credit score and history.
- No fear of loan default, penalty fees and more debt. If you can't pay back the loan you can just surrender your collateral.
- You risk to lose your collateral if you don't pay back the loan on time.
- Your property can be evaluated at a lower price than it really costs.
- You can be charged additional fees for insurance, storage and more.
- Payday Loans
-
Pros Cons - Fast application and processing.
- Easy and convenient: no driving, no paperwork, no waiting in lines;
- Applying is free and doesn’t affect your credit history;
- Funds go directly to your bank account, you don’t have to get cash, deposit it into your account or leave a postdated check;
- High availability for both good and bad credit borrowers.
- Available online and in-store.
- There can be some scams, who want just to get your private information. So be careful, before applying check whether the lender is authorized and legal.
- Rather high interest rates.
- Penalty fees for loan default, late payment fees, NSF fees which may lead to more debt.
Alternatives to Pawn loans and Payday loans.
If you don't find either Pawnshop or Payday Loans useful, you may also consider Personal Installment Loans. They are offered in higher amounts up to $5000 or even $35000 for a longer period of time and repaid in fixed equal installments. Check out the offers from our top direct lenders.
Check Into Cash offers Payday Loans, Title Loans, Personal Installment Loans and other money products at affordable rates with convenient repayment.
- MIN Loan Amount: $50
- MAX Loan Amount: $3000
- Terms: Vary by state.
- Rates and fees: 261% to 782% APR
- Turnaround Time: 1 business day
|
|
|
- Active checking account open for 90+ days
- US citizen or permanent resident
- Personal and work phone number
- Valid email address
- 21+ years old (19+ in Alabama)
- Social Security number (for Indiana residents only)
- Pros
-
- You can get even as low as $50.
- Quick funding on the next business day.
- Money can be used for any personal needs.
- Cons
-
- Not available in every state.
- APR can be more than 153.73% depending on your state.
- High late payment fees.
Jora Credit offers Installment Loans and Lines of Credit.
- MIN Loan Amount: $500
- MAX Loan Amount: $2600
- Terms: 24 months
- Rates and fees: 170% - 349% APR
- Turnaround Time: 1 business day
- Installment Loans
- Line of Credit
- You reside in a state we currently serve.
- You are at least 18 years old (19 if residing in AL).
- You have a job or other proven source of income.
- You have a valid e-mail address.
- You have an active and valid checking account.
- Pros
-
- Simple - it’s easy to apply right from your phone, laptop or tablet – anywhere, anytime.
- Secure - сomplete the secure online application, find out how much you can be approved for.
- Fast - accept your loan by 10:30am Central time and you can get your funds on the same day.
- Helpful - with Jora, you’ll have helpful tools to increase your earnings and maximize your career.
- Cons
-
- Not available in all US states.
- At 349%, highest rate of APR is not too dissimilar to a Payday loan.
LendYou will help you get the cash you need when you need it. You can apply for Payday Loans, Installment Loans or Personal Loans, etc. Compare the lenders and get matched with the best one.
- MIN Loan Amount: $100
- MAX Loan Amount: $35000
- Terms: Varied
- Rates and fees: Starting at 4.99% APR
- Turnaround Time: 1 business day
- $100 - $1000 Payday Loans
- $1000 - $5000 Installment Loans
- $5000 - $35000 Personal Loans
- 18 years of age or older
- U.S. citizenship
- Valid checking or savings account with direct deposit
- Minimum regular income of $1,000 per month
- Not be a regular or reserve member of the Air Force, Army, Coast Guard, Marine Corps or Navy (or be a dependent of someone who is,) serving on active duty under a call or order that does not specify a period of 30 days or fewer.
- Pros
-
- High up to $15,000 loan amounts.
- Minimal restrictions on how you can use your loan.
- No collateral or guarantor.
- Bad credit is OK.
- Cons
-
- It's not a direct lender, so you'll need to clarify rates and terms with the company you are matched with.
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