Payday Advance Vs Going to a Pawn Store

09 Aug, 2018 / By

Emergencies pop up from time-to-time and money isn’t always available to take care of those emergencies. It is important to know that you have options to help you get the funds you need. Payday loans and visiting a pawn store are two of the most commonly used options to help you deal with those emergencies. Each has benefits and drawbacks, which are discussed below.

Advantages of Obtaining a Payday Advance

Payday loans are quite convenient. The amount that you are qualified to borrow is based upon your income in comparison to other necessary bills. As long as you have decent, steady income, you can get a payday advance. The loan company will only let you borrow what they determine can be repaid. You can apply for a payday advance either in-person or online. It is important that you read the guidelines of the online options as these interest rates are likely to be different than a local branch.


Several drawbacks are noted with payday advances. The first disadvantage is that you have to have a valid checking account. Not everyone has a traditional checking account, and for those that do, not everyone actually uses checks anymore. This is inconvenient.

Another drawback is the high interest rates. What often happens after consumers take a payday advance is that it becomes a cycle that is hard to get out of. Once the advance is paid off, another is taken immediately to put the funds back into the account.

Continuing with drawbacks is the fact that payday loan companies are not always available on weekends. Most are only open during the week, and some are available on Saturdays but rarely will you see an institution open on a Sunday.

Benefits to Visiting a Pawn Store

Most pawn stores take anything of value, but some will list specifically what items they are giving loans on. You have the option to pawn or obtain a loan on an item or you can sell it to the store. The terms with a pawn store are far more lenient than with a payday loan because you have 90 to 120 days to retrieve your items. This gives you the opportunity to put a little money aside each week to pay the loan off.

Of course, you can opt to make small payments each week on your items so that you are not tempted to spend the money. Pawn stores are generally open 7 days a week, with some being open later in the evenings. Money is always accessible when you have something of value that can be resold.


The main disadvantage to visiting a pawn store is that if you are unable to repay the loan in the specified time period, your items are lost. If you have pawned items of sentimental value that cannot be replaced, they are gone unless you purchase them at the retail price listed when the items go on display.

You may not get all of the money needed with a pawn store. These stores can only give a loan for a percentage of what the retail value of the item is in its current condition. While this may not seem fair, the pawn store is taking a risk on loaning you money on an item that may never get picked up.

There are more benefits than disadvantages to obtaining emergency funds with a pawn store than with a payday advance. The idea is to weigh the options and choose the best option for your needs and means of repayment. Defaulting on a payday loan is far more serious than defaulting on a pawn store loan.

Jennifer Hamilton

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