Pawn loan or payday loan?

If you have an item worth more than the loan

A pawn loan is usually the safer bet. If you cannot repay, the shop keeps the item and the debt ends there. Ask how long they hold the item and what it costs to get it back.

If all you have is a paycheck

A payday loan is due in full on your next payday, and the lender usually takes it straight from your bank account. If the money is not there you pay bank fees too, and renewing the loan means paying the fee again. Ask for the total repayment in dollars and the exact due date.

Whichever you pick

• Ask for the total you will repay, in dollars, and the due date — in writing.
• Ask what happens if you pay late or cannot pay on the due date.
• Ask whether they will call your employer or your references.
• Never pay a fee before you receive the loan.