If you’re one of the many whose credit has suffered in the wake of the 2008 recession a bank loan is simply not an option for you. A pawn loan can provide you with the cash you need no matter what your credit looks like. Even if you’ve maintained perfect credit, you may not want to deal with the hassle of a bank when you just need a small short-term loan.

Whatever your situation or short-term credit needs, a pawn loan is a flexible option available to anyone with collateral. Banks require not only good credit, but also proof of income and other resources to ensure you will be able to pay your loan back. The process is long and involved with a lot of paperwork and waiting.

A pawn loan requires collateral and nothing more. If you have something of value you can part with for a short period of time, you are eligible for a pawn loan. Furthermore, if you are unable to pay your bank loan, or even if you are having difficulty making one or two payments on your loan, your credit is negatively affected.

If, however, you are unable to pay off your loan you can extend the life of the loan by paying the interest or simply lose your collateral and nothing will ever show up on your credit report. More and more people have discovered pawn shops as a viable solution to their cash flow problems. When you take out a collateral loan on gold or other valuable items, your credit history never comes into play. The pawnbroker assesses your valuable item to determine your loan amount. Pawnbrokers take a variety of valuables including watches, diamonds, power tools, musical instruments, collectibles, gold and fine art. Life being what it is, sometimes a loan is necessary. A bad credit rating doesn’t mean you don’t have options.