Las Vegas Pawn Shop Loans: Need Quick Cash with No Credit Checks?

The need for a quick cash advance loan is strong throughout America, but Las Vegas pawn shops have been recording record levels of business. EZCORP (EZPW) reported a 73% growth in revenue to $25.7 million in the fourth quarter of 2009. Also, the profits of First Cash Financial Services (FCFS) rose by 26% in the year ending 31 December 2009. The demand for pawn shops in Las Vegas has always been greater than the rest of the country due to the massive influx of visitors who wish to play at the casinos.

How Do Pawn Shops in Las Vegas Work?

A loan from a pawnbroker is a form of secured loan. In order to borrow money, the customer will need to provide a bad credit lender with an item of value. The most common forms of collateral include gold, silver, jewellery, art, antiques, electrical goods and car titles. An expert will assess the value and will then provide the customer with a no credit check loan for 30% to 50% of the items value. The money will typically be provided in less than 10 minutes along with a receipt so the collateral can be redeemed at the end of the borrowing term. This is usually 30-days from now, but could be as long as 6-months.

Cost of a Guaranteed Cash Loan with No Credit Checks

The high level of default means that fast cash pawnbrokers charge a usury rate of interest to their customers. For example, a loan from a Las Vegas pawn shop for $500 will typically accrue $125 of interest in a single month. If money is tight now, does borrowing money at a high rate make it any easier the month after? Customers who need fast cash must have a way to meet the shortfall in future months. If this isn’t the case, it may be better to get financial guidance from a credit counseling service.

Consequences of Defaulting on a Las Vegas Pawn Shop Loan

In order to retain the collateral, the customer must redeem the item at the end of the term by repaying the principal and any interest that has accrued. If this doesn’t happen, the pawnbroker is legally entitled to sell the item to recover their money. This is why lenders rarely lend more than 50% of the items value. Other than the loss of the item, there are no other consequences to default. There is no further debt to pay off and the matter won’t be reported to credit reference agencies.

Borrowing Money from Las Vegas Pawn Shops to Gamble

Gambling at the casino is a high risk activity and many visitors to this amazing city have left without a penny to their name. The house edge, such as the double zero on the roulette wheel, combined with the table limit mean that it is not possible to win money over the long term. Losing money creates a feeling of panic so a fast cash loan from a pawn shop in Las Vegas is likely to lead to that person chasing their losses. Customers should only take out a quick cash advance loan for an urgent financial need.

How to Find an Affordable Mortgage Loan: Choosing Alternative Home Loans and Mortgage Lenders

Homeowners looking for affordable mortgage loans need to have realistic expectations before they approach a mortgage lender. Online home ownership and mortgage calculators can give homeowners a rough idea of how much they can afford to spend on a home. As many homeowners have learned, it is a good idea to stay within a reasonable budget when taking out a home loan.

Mortgage Information for Homeowners

Traditional mortgages require monthly payments on both principal and interest, while alternative mortgages such as interest-only and payment-option adjustable rate mortgages allow for lower payments initially. While the low monthly payments of some alternative mortgages can be beneficial for some homeowners, they may also tempt a home buyer into choosing a larger home loan than necessary. The Federal Reserve Board advises against doing this. The entire home loan needs to be paid back eventually, and a homeowner unable to make payments on a large mortgage may face foreclosure.

On the other hand, traditional mortgages can be too expensive for some homeowners. What should a potential homebuyer do? The Federal Reserve Board recommends homeowners consider either a fixed rate mortgage or a fully amortized adjustable rate mortgage and negotiate to get the best terms possible. “Shop around for terms and features that fit your needs and your budget,” they advise in their report “Are They For You? Interest-Only Mortgage Payments and Payment-Option ARMs”.

Mortgage Lenders – Credit Unions, Community Banks and Insured Home Loans

If the big banks aren’t able to provide an affordable mortgage loan, a homeowner has more options. Most credit unions and community banks have not been damaged in the housing crisis the way major banks and investors have, and may be willing to negotiate on home loans.

The US Dept. of Housing and Urban Development has a network of certified mortgage lenders that offer qualified homeowners insured, fixed-rate loans. “FHA-insured loans are low risk and have traditionally been an inroad for first-time buyers and others for whom home ownership might not otherwise have been an option,” writes Joe Mahon of the Minneapolis Reserve Bank in his article “Home to Roost”.

More Tips on Affordable Mortgage Loans

According to the FRB, homeowners can also do their part to ensure getting the best home loan possible by doing the following:

  • Saving up for the largest down payment possible, to cut down on the size of the loan needed.
  • Looking for the least expensive home possible. Once equity is built up, a homeowner can sell and buy a more expensive home.

Looking for community housing programs that offer lower interest rates or reduced fees for first-time homebuyers.