Quick Loans in Chicago – As Easy As A Trip To The Pawn Shop

The modern pawn shop is nothing like the way they’ve been depicted in movies and television over the years. Pawnbrokers are professionals who conform to a rigid code of ethics and a plethora of state and federal laws regulating their industry. And they are dependable dealers of resold merchandise and quick loans.

When a person brings in a valuable item to a pawn shop to secure a quick loan by “hocking” that item, he or she is making a “collateral loan”. That means that, unlike with payday loan operations, the loan is based upon the value of the item brought to the shop. Intended to be a short-term loan, the pawnbroker will assess the item for its likely resale price in the open market, which sets the limit upon the loan. There will be interest charges for the duration of the loan term. But if the loan goes unredeemed, the interest is terminated at the end of the loan period and the collateral item is then claimed outright by the broker and put up for sale to recover the loan amount. And no sort of credit report is filed with any agency, so losing a “hocked” item will not reflect badly upon a credit score.

Fortunately, most customers for Quick Loans in Chicago are able to pay back the loan and recover their item. And they never have to worry about the item being sold out from under them. Ethical pawnbrokers honor their agreements partly from their own code of ethics and partly from the value of having a good reputation in both the industry and the community. The item which has been left for collateral is as secure as if it were in a bank vault. And upon payment of the interest charge and principle, it’s returned with no additional charge or dispute. Dealing with a pawn shop can actually be far easier than other outlets for Quick Loans in Chicago because of far less red tape involved. After all, the very item in one’s hands is the security for the loan. Nothing else is needed other than proof of ownership and proper ID to qualify, and no background credit check is necessary.

Visit us here and see for yourself what advantages a pawn shop has to offer for securing a small loan on a valuable item which otherwise is collecting dust or going to waste. After all, you’ve got nothing else to lose.

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