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For No Credit Check Loans, Look No Further Than Your Local Pawnbroker

by Jim ONeil on January 19, 2012

in pawnbrokers

Whether buying or selling, people have dealt with pawnbrokers for hundreds of years. For the past 50 of them, pawnbroking in Britain has not been very popular. It is now becoming more so, spanning from high-class to high street. Everyone seems to be visiting pawnbrokers for no credit check loans to consolidate debt, pay household expenses, or simply finance a vacation.

Whatever their wants or needs, British pawnbrokers are ready to help consumers realize them.

Deals are the same whether they involve a few pounds, a few thousand, or much more. These loans are fully secured by the property submitted by the borrower. In addition to no credit check, there is no negative credit affect for defaulting on the loan.

British pawnbrokers lend up to 40 percent of the market value of the item. After an agreed-upon period of one to six months, the customer can repurchase the item for the loan amount plus interest. If the loan is not extended or repaid, the pawnbroker sells the property to recoup the money.

Nearly any item of value can be pawned, from broken precious metal jewelry to fine artwork. An increasing number of Brits are finding things to pawn and heading to a local shop. From this heightened demand, new pawn shops are born. While these establishments proudly reveal themselves in working class areas, they are harder to spot in more upscale sections of the city.

There, many of them look like art galleries or private banks.

Pawnbrokers like Harvey and Thompson, which operates 160 stores, are experiencing commendable year-over-year double-digit growth. This year, Albemarle and Bond hopes to increase its number of stores by 25. These situations were unheard of two decades ago, when the pawnbroking industry seemed to be going the way of the dinosaur.

What a difference 20 years and a recession make.

In reality, the industry was already starting to resurrect itself before the recent recession. National Pawnbrokers Association (NPA) chief executive Des Milligan reported that growth has been “steady” since the 1980s when major chains moved into good areas.

The association executive commented that even when economic conditions were positive, some consumers had difficulty obtaining loans bank provided and other credit.

The average customer was traditionally a female under 40 who earned a low income or was working part-time. During the past nine months, the customer base has shifted, from a demographic perspective. Now, affluent members of the middle class are crossing the threshold after being rejected by banks.

Even small businesses are using this quick financing to pay for wages or inventory until they receive customer payments.

Once considered a shady industry, pawnbrokers have done much to change the perspective of their trade. An NPA commissioned study in 2010 revealed that 80 percent of items offered to British pawnbrokers were redeemed. Pawnbrokers are happy about this because, like payday lenders, they rely on the interest.

The average pawnshop loans APR is over 90 percent but since loans are offered for less than one year, monthly interest rate is a better measure.

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