Are payday Loans and pawn loans the same? The answer is no, they are not! Here at Westbury Gold Buyers, we only offer Pawn Loans, and we will explain to you why that is, plus the advantage of pawn loans over payday loans.

WHAT IS A PAYDAY LOAN?
Payday loans are loans given specifically based on your perceived ability to repay and earning capacity. They are generally high-interest loans to be paid back within a short period of time, normally against the borrower’s next pay check. Credit score is checked prior to the loan being sanctioned. Failure to pay your debt on time will result in having your debt lodged with a debt collection agency.

WHAT IS A PAWN LOAN?
Pawn loans are collateral loans given against items, such as electronics, jewellery, watches, gaming, cars and much more. The item must remain at the pawn shop throughout the duration of the loan.

The amount of cash given for a pawn loan depends on how much you need to borrow and the value of the item. You have to agree for an amount of time to repay the loan, and once the loan is paid back, your item is returned back to you. If you do not repay the loan on time, the item will be auctioned for selling to recover costs.

WHY SELECT A PAWN LOAN OVER A PAYDAY LOAN?
Pawn loans are given based on the value of the item you own. The item value determines your credibility to borrow. Pawn loans do not have any hidden fees or charges. You are simply charged as per set rate a month. Pawn loans give you the ability to pay principal payments, part payments or interest payments at any stage during the loan without any extra charge.

Pawn shops are discreet, private and will not follow you up if an item is not collected after paying in full or if payments are missed. The pawn shop will sell your item (if not collected) at the end of loan period to recover costs. The main benefit of this lending is that you can loan as many times as you want with multiple pawn loans without affecting your credit score.

Payday loans are based on your credit score. To put it simply, your credit score will determine your ability to borrow. Payday loans are also based on your income, therefore a low income will affect your ability to borrow a small amount that you need or even affect your ability to borrow an amount.

If you default on the loan, you may incur overdraft fees and bank costs. If your payday loan is not paid fully, it will result in bad credit rating, affecting your ability to borrow from other financial organizations. Not only that, you will get caught with debt recovery companies chasing you and asking for payment through letters, phone calls, and even turning up at your work or home. Returning to the business for which you borrowed debt from will be impossible.