Better Than Pawn Exchange
While online pawning is attractive for a number of reasons, the loans themselves are still non-traditional, and bring with them exorbitant interest rates. At Pawngo, for example, terms are for three to six months, at a maximum of 6 percent interest, but that interest is accrued every month. So, if you keep a $2,500 loan for three months, the interest due is $150 per month, totaling $450 in interest, with the annual percentage rates ranging from 48 to 84 percent, depending on the loan amount. (1, 2) Loan extensions make this figure jump even higher. The loans are still pawn shop quality, just without the social stigma of being spotted hocking the family jewels on the wrong side of town. However, with all things considered, online pawn shops can provide very comfortable loan options and positive pawn experiences for qualified borrowers who need cash fast without risking their credit score or their reputation.
New Online Pawn: