Which is better: pawn shop, lender or online loan?

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When an unforeseen event occurs and we need to borrow money, we rarely compare our options. Given the urgency of the situation, we usually make decisions without analyzing the advantages or disadvantages of requesting a loan by one means or another.

The reality is that, although we cannot anticipate emergencies, we can be informed and know the great differences between applying for a loan online or going to a pawn shop or with a lender.

Our team of advisors from Anna Karenina Mexico shares a brief comparison between pawn shops, lenders and loans online so you can choose the option that suits you.

 

Pawnshop

Pawn shop

Although they are commonly known as “pawn shops,” there are two types of institutions that offer loans with collateral: pawn shops (private companies) and Private Assistance Institutions (foundations and nonprofit associations).

Advantages

  • Money is delivered in cash.
  • You can receive a larger loan if you commit an object of great value.
  • You receive the money almost immediately.

Disadvantages

  • You must leave a pledge under warranty (for example, jewelry or electronic devices).
  • You have to travel with your guarantee or cash on the street.
  • You run the risk of losing your assets if you don’t pay on time.
  • You depend on the availability of branches in your area.

 

Lender

You can restructure your loan from the comfort of your home

Usually, they are managed independently and under their own rules, so if a conflict arises, there is no public institution that can intercede or ensure your rights.

Advantages

  • They do not check if you are in a credit bureau.
  • You can request higher amounts.
  • You make the deal directly with the lender.

Disadvantages

  • They are not regulated by law.
  • You must present a guarantee (usually the deeds of a property).
  • You run the risk of losing your assets if you don’t pay on time.

 

Online loan

Online loan

The financial institutions that give this type of loans are intended to offer an easy, fast and responsible financing alternative to cover unforeseen events.

Advantages

  • You do not need a guarantee or guarantee.
  • You can complete the procedure from your home without having to carry cash on the street.
  • You have an immediate response to your request.
  • Serious companies are regulated and offer the support of renowned financial institutions, such as Anna Karenina in Mexico.

Disadvantages

  • You need a bank account to receive your loan.
  • The amount of the first loan is less than other types of loans.

The next time you find yourself in an unforeseen event, take this information into account so you can get more out of your money. Don’t forget to compare the services from one company to another, since the benefits can change. For example, at Anna Karenina Mexico we offer our clients their first online loan with 0% interest.
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