In life, the unexpected is bound to happen. Sick pets, car troubles, and other unplanned emergencies are often unavoidable. Additionally, they can take a toll on your bank account. This is especially true if you don’t have an emergency fund to cover unforeseen expenses.
In today’s modern digital landscape, you have an endless stream of online loan options available right at your fingertips. While most people assume it’s convenient and easy to apply for and obtain an online loan from the comfort of their own homes, it can also be quite dangerous.
Here are the surprising dangers of online loans and why getting a collateral loan from a pawn shop, like Maxferd, might be a better option for you.
The Potential Dangers of Online Loans
While online loans might seem like fast and simple solutions to your short-term financial problems, they can also come with significant risks. Some of the top dangers of online loans include:
- Sky-high interest rates: The biggest danger of an online loan is the astronomical interest rate it comes with. While each loan product will be different, the interest rate is determined by the lender. It is also heavily based on your credit score. Additionally, the annual percentage rate (ARP) can be deceiving.
- Identify theft: There are millions of cybercriminals lurking on the internet every day. Identity theft is among the leading cybercrimes out there, with the US Federal Trade Commission (FTC) receiving 5.88 million reports in 2021. When you apply for a loan online, you have no idea who is looking into your sensitive financial information. If you don’t do thorough homework on the lender, you could be putting yourself at risk.
- High upfront fees: When it comes to most online loans, you will be slammed with high upfront fees. It’s important to always read the fine print before signing an agreement.
- Prepayment penalties: Believe it or not, you could be penalized for paying off your loan early. Before you get a loan, ensure there are no penalties for paying your debt off early.
As you can see, online loans aren’t as easy or safe as they appear to be.
A Better Alternative: Collateral Loans from a Pawn Shop
Are you hesitant about getting an online loan but still need fast cash? A collateral loan from a pawn shop could be the right solution for you. Unlike an online loan or a traditional loan from a bank, a collateral loan from a pawn shop allows you to borrow money for items you already own. Best of all, it does not impact your credit score in any way.
Some of the biggest benefits of getting a collateral loan from a pawn shop include:
- No credit check required
- It does not affect your credit score
- Instant, upfront cash for emergencies and unforeseen expenses
A collateral loan from a pawn shop is an easy solution to your short-term financial troubles.
Get a Collateral Loan from Maxferd
If you’re in a bind and need fast cash, stop by Maxferd today. With five convenient locations across California, we’ve been providing collateral loans since we first opened our doors way back in 1884.
At Maxferd, you can obtain a loan that matches or exceeds the value of your jewelry, electronics, precious metals, luxury handbags, musical instruments, and more.
With extremely low-interest rates and no credit check required, you can walk into our store and walk out with cash in hand, no questions asked.
To learn more, contact us today by calling (800) 888-PAWN (7296). We look forward to hearing from you soon!