At some point in life, we need some financial help, even people who are well off hit a couple of speed bumps. Not everyone has family and friends who will be willing to help or have the cash right at that moment. This is when you should search for other avenues where you can get cash. No one ever wants to find themselves in a situation where they have to ask for money but life happens. Fortunately, you have options you can choose from, others are easier and less complicated. The biggest considerations you need to make when taking out a loan is whether you meet the lender’s requirements or whether you take the traditional route or you approach Melbourne pawnbrokers.
So, what are these options that you have?
Banks traditionally give loans and they are stable and trustworthy. The biggest issue with banks is the credit checking that they do as well as requiring that you prove you have an actual income stream. Before a bank can issue a loan, they have to check a lot of things and when it comes to credit checks, each time there is a credit history enquiry, this registers on your credit history report. So, if you know that you might have issues with FICO scores and you might be turned down, make sure that checks should be made when it is absolutely necessary.
The internet has made accessing things much easy, even short-term loans. Several online lenders offer quick cash loans. However, there are a couple of problems online applications pose. It might sound convenient but do you know who you are dealing with? Is your personal and financial information safe? They may be selling their personal information to third parties which puts you at risk of identity theft. Besides being sketchy, a few people have dealt with online loan providers making unauthorized withdrawals from their bank accounts.
Collateral loans and pawn loans at physical pawn shops
Brick and mortar Melbourne pawnbrokers are usually known in the communities they work in. You can find a lot of people who have dealt with such a pawnshop in the past who will be able to give you an idea of how trustworthy an establishment is. Pawnshops do not conduct credit checks. They don’t require proof of income or access to your bank account. The payment is made when you bring something of value like gold jewellery as collateral. For your cash loan, you will have to pay the loan back in full, plus interest and other additional fees. You get your valuable items back when you pay the loan off. All payments are made at the store itself.
You won’t have to deal with harassing phone calls reminding you of your debt. If you don’t pay the loan back, you forfeit your items. It’s a simple system that ensures that both parties are happy with the outcome, whatever it may be.