What You Should Know About Collateral Loans in Cocoa, FL
For people that call the Cocoa, Florida area home, life situations often arise that require money to take care of. Many times it’s an unexpected car repair bill or a medical bill, but the need for emergency cash can be much more varied than simply repairing a car or paying for a trip to the emergency room. Regardless of why a person needs emergency cash, often times, in order to get the money needed, people will look for Loans in Cocoa FL. While there are many ways to secure a loan, perhaps the best type of loan, especially for people that have valuable possessions, is a collateral loan.
These types of loans are often provided by pawnshops, and for many people, this may seem to be a bit suspect. However, it’s important to understand that most pawnshops that offer collateral loans are regulated by local, state and federal agencies as well.
A collateral loan is quite simple, and it avoids some of the waiting and the excessive paperwork that a person may have to do to get a loan at a lending institution. Basically, what happens is a person will bring in a valuable item and the pawn shop will offer a loan for a certain percentage of the items value. The pawn shop will then hold onto the possession until the loan is repaid, including all interest and fees. In the event the loan isn’t repaid at an agreed-upon time, the pawn shop will retain the item and typically sell it in order to recuperate their losses.
It’s also important to understand how affordable these types of loans are. On average, the interest rate for one of these loans is usually about 20%, which is far better than most people receive when doing a title loan or payday loan. In addition, these loans are short-term loans, usually repayable in a months time. This means that $100 loan will cost a person $20 in interest, which makes these short-term loans extremely affordable.
If you need money quickly, but you don’t have time to go to a bank, or you aren’t sure if the bank will approve you for a loan, collateral Loans in Cocoa FL may be the best option. If you have valuable possessions that you can use as collateral, a place like Gold Mine Brevard can be extremely helpful to you.