As more people live paycheck to paycheck, it’s no surprise that secure pawn loan options in Tampa are seeing record business. But pawning isn’t a quick fix. It’s not for everyone, and there are alternative ways to raise money, like garage sales or online marketplaces. If you do choose to pawn an item, remember that you’re leaving it with the shop as collateral. Failure to repay a pawnshop loan will lead to losing the item. And, unlike a payday or car title loan, there’s no legal requirement that the shop report you to credit bureaus or sue you for defaulting on a payment.

How Secure Are Pawn Loans? What Every Borrower Should Know

The best way to compare pawnshop loans is in terms of annual percentage rate, or APR. Although pawnshops might list fees rather than interest per month, calculating APR provides the most apples-to-apples comparison of loan costs across different types of loans and even credit cards.

Pawnshops carry everything from jewelry, tools and electronic devices to furniture, kitchen appliances and off-road vehicles. They’re also a good option for those with bad credit who may not qualify for a traditional bank loan. However, if you’re thinking of taking out a pawnshop loan in Tampa, make sure to weigh the pros and cons with other alternatives. And, remember that an APR calculation includes the loan’s fees and insurance charges. A simple online calculator will help you calculate an estimated APR. Then, you’ll have a clear understanding of the value and cost of a pawnshop loan.