For most loans, borrowers have to provide evidence they can repay the loan as the contract requires. Even businesses offering vehicle title loans commonly insist on seeing proof of income, since these lenders really do not want the hassle and expense of repossessing vehicles. The main exception to the proof-of-income rule is with pawn shops providing Quick Loans in Chicago and elsewhere across the nation.
Some individuals use pawn loans as a way to get out of a financial crisis. They will have the money they need with their next paycheck, but that might not arrive for another week or so. In the meantime, it may be imperative for them to get their only vehicle repaired so they can continue going to work.
No Proof of Income Required
The reason pawn shops do not require proof of income is because they simply keep the collateral if the customer defaults. They do not have to find and repossess a vehicle, and they do not need to begin collections activity. A customer who defaults on a loan is welcome to come back and do business again in the future. The process of acquiring and paying off these Quick Loans in Chicago is straightforward and understandable.
Interest Rates
Borrowers must understand that interest rates for these short-term loans are relatively high, as is the case with most loans intended to be paid back quickly. A pawn loan ideally should be paid back within 30 days, but it can be renewed by paying the interest due. The faster the money is paid back, the less interest charges the customers will have to deal with.
Acceptable Collateral
Jewelry is one of the most frequent types of collateral accepted by pawnbrokers. Most of these shops also offer loans for laptop computers and other electronics, musical instruments and power tools. They may accept other consumer goods like small appliances in good working order and bicycles, depending on how much space is available in the store. Essentially, they look for items they could resell if the customer does not pay the loan back. Contact Clark Pawners & Jewelers for information on this particular shop.
