Guide to Cash Converters Loan Options

Understanding Cash Converters Loan Options

Cash Converters operates a large network of retail outlets in the UK and internationally, offering various ways to access instant cash. While best known for buying and selling second-hand goods, it has carved out a unique space with loan products that empower customers to unlock the value in their possessions or vehicles, often without the need for a traditional credit check.

Main Types of Loans at Cash Converters

• Pawnbroking Loans: Secure a short-term loan by leaving a valuable item as collateral. Receive cash immediately and reclaim your item by repaying the loan and interest within 1-3 months.
• Buyback Scheme: Sell your item for instant cash with an option to repurchase it within 28 days for the original price plus a fee.
• Logbook/Car Owner Loans: Use your vehicle as security for a larger loan (between £1,000 and £10,000). This is brokered through a third party and involves a credit check.

“For many, these options provide a vital bridge during pressing financial needs without risking credit scores.”

Snapshot: Cash Converters Loan Types

Who Are Cash Converters Loans For?

• Those needing cash quickly with valuables to use as security
• Individuals with bad credit (no credit check on pawnbroking/buyback)
• Customers preferring transparent in-store transactions

Cash Converters does not currently offer online unsecured payday loans in the UK. All loans are secured and require a store visit.

Key Features and Eligibility

• No credit check for pawnbroking and buyback: Get cash using assets, not your credit score.
• Wide range of accepted items: Jewellery, electronics, smartphones, musical instruments, power tools, and in some cases, vehicles.
• Age & ID: Must be 18+ with two forms of ID (proof of identity and address).
• Instant cash: Walk out with money in your pocket, often within an hour.
• No penalty for early repayment.

Highlight: Losing your item for non-repayment does not affect your credit score, but you will forfeit the security you deposited.

How Does Pawnbroking Work?

1. Bring your item to a local store for valuation.
2. Receive a cash loan offer based on the item’s worth.
3. Leave your item as collateral and take the cash.
4. Repay the loan plus interest within the agreed term to reclaim your item.

Requirements:

• 18+ years old
• Government-issued photo ID
• Proof of address (recent bill, letter)

Advantages

• Fast access to funds
• No impact on credit score for defaults
• Ideal for customers with poor or limited credit

Risks

• Must hand over a valuable item to secure the loan
• High cost relative to conventional bank loans
• Failure to repay means losing your item

Borrow responsibly: Use secured loans for short-term needs—not ongoing financial struggles.

Buyback Scheme: An Alternative to Traditional Loans

Buyback works differently from pawnbroking:

1. Bring in your item to sell for instant cash.
2. Have the option to buy it back within 28 days for the sale price plus an administration fee.
3. If not repurchased, the item goes up for resale.

No repayments, no interest—just an admin fee when buying back. No credit checks involved.

Car Owner & Logbook Loans

For larger amounts, you can use your car as collateral (logbook or car owner loan):

• Borrow from £1,000 to £10,000, depending on your car's value
• Loan term and rates vary; a credit check applies
• You keep driving the car, but it is secured against the loan

Important: If you default on a logbook loan, you risk losing your vehicle.

Responsible Lending & Regulation

• All pawnbroking and loan activities are regulated by the Financial Conduct Authority (FCA).
• Cash Converters emphasizes clear terms and consumer welfare.
• The company acts as a broker for some products (e.g., logbook loans), not as a direct lender.

“If in doubt about borrowing, seek free advice before committing.”

Frequently Asked Questions (FAQs)

Q: Can I get a Cash Converters loan with bad credit?

• Yes, for pawnbroking/buyback. These are asset-backed and require no credit check. Logbook loans and personal loans involve checks.

Q: How much cash can I get?

• Depends on the value of your item(s) or vehicle.

Q: Is my item safe while in store?

• Yes, all items are securely stored for the entire contract.

Q: What if I can’t repay?

• For pawnbroking and buyback, you forfeit the item but avoid credit harm or debt collectors.

Q: Do I need to visit a store?

• Yes, for pawnbroking, buyback, and logbook loans in the UK.

Comparing Alternatives

Call to Action:

Before using your valuable items as security, consider all options. Reflect on what you can afford to repay and if a short-term loan fits your needs. For persistent money issues, seek guidance from free debt advice charities.

Quick Takeaways

• Cash Converters offers secured in-store loans, ideal for those with bad credit and valuable goods.
• The process is fast and discreet but means risking your items if you cannot repay.
• Products are best for short-term emergencies, not long-term financial solutions.
• Always use reputable lenders and understand all terms before committing.

Get Support

For impartial debt or borrowing advice, visit MoneyHelper before entering any loan agreement.