Why pawn cash loans are better payday loans  

Pawn cash loans and payday loans are both popular options if you are in need of quick cash. However, pawn cash loans have the edge over payday loans due to their faster processing time.

Here are other reasons why you should go for pawn cash loans;

1. No risk of bounced checks
   When you take a payday loan, you give the lender a postdated check. The check indicates the loan amount plus any other fees and is usually dated the date of your next paycheck. If you don’t have funds in your account, the bank may accept the charge and subsequently charge an overdraft fee. These additional fees may throw you off balance financially for a long time. With a pawnshop, however, the item you present serves as collateral, and there is no need to provide a postdated check.
2. The potential for larger loans
   Payday loans are essentially based on your income. As such, you are limited to the amount of money you can borrow over time. If you are facing a financial emergency that and you need more money, a pawnshop is your best bet. The amount of money you get at a pawnshop entirely depends on the value of your item.
3. Longer Repayment Term
   With payday loans, you only have until your next paycheck to repay your loan. Roughly that’s about two to three weeks depending on when you took the loan. At Gem Pawn Brokers, we can negotiate a longer repayment period for yourNew York cash loans affording you some peace of mind as you handle your financial emergency.
4. No Credit Impact
   Payday lenders don’t check your credit report while reviewing your applications but if you default on the loan, your credit score is significantly affected. Ideally, when payday lenders don’t receive payments, they contact a collection agency. The collection agency then sends notifications to credit reporting bureaus, which then put a negative mark on your credit report.
   With a pawnbroker, however, there is no chance of this happening and ruining your credit report. The pawnshop holds your item as collateral, and if you can’t pay the loan, you can inform them to keep the item.
5. Less Likely to be hooked in a vicious debt cycle
   Payday loans are known to have high fees, and when consumers can’t meet their payment obligations, they often take another loan to clear the first one. In this case, you may end up paying hundreds of dollars in fees, which sometimes exceed the principal amount. Pawnshops, however, have lower interest rates, which means it’s easier to pay back their loans.

Gem Pawn Brokers have been offering New York cash loans services for over 7 decades now. Visit us in any of our shops in Manhattan, Brooklyn, Bronx, Westchester, Queens, and Long Island for instant cash loans with competitive interest rates.