What is the difference between Pawn Loans and Payday loans?

Are Pawn Loans and Payday loans the same?

The answer is no, they are not! And here at DollarDealers we only offer Pawn Loans, and we want to explain to you why that is, plus the benefit of pawn loans over payday loans.


Pawn loans are cash loans given against a collateral item, such as electronics, watches, jewellery, gaming, cars and much more. The item must stay at the pawnshop throughout the duration of the loan.

The amount of cash given for a pawn loan depends on the value of the item and how much you need to borrow.You have an agreed amount of time to repay the loan, and once the loan is repaid, your item is returned to you. If you do not repay the loan the item will be sold by us to recover costs.


Payday loans are loans given specifically based on your income and perceived ability to repay. They are typically high-interest loans to be repaid within a short amount of time, normally against the borrower’s next paycheck.

Credit checks are carried out prior to the loan being administered. Failure to pay your debt I time can mean having your debt lodged with a debt collection agency.


Pawn loans are created based on the value of the item(s) you own. The value of your item(s) determines your ability to borrow.

Pawn loans have NO hidden fees or charges. You are simply charged a set rate per month.

Pawn loans give you the ability to pay part payments, interest payments or principal payments at any stage during the loan without charge.

Pawnshops are private, discreet and will not follow you up if payments are missed or item(s) are not collected and paid in full. The pawnshop will simply sell your item at the end of the loan period (if not collected) to recover costs. The main benefit to this type of lending is you have the ability to loan as many times as you like with multiple pawn loans without affecting your credit rating.

On the other-hand, payday loans are based on your credit rating. Simply put, your credit rating will affect your ability to borrow. Pay day loans are also based on your earning capacity, therefore a low income will affect your ability to borrow the amount of money that you need or even affect your ability to borrow a small amount. If you default on the loan, you may incur bank costs and overdraft fees. If your payday loan is not paid in full, this will result in bad credit, affecting your ability to borrow from other financial institutions, including the bank! Not only that, you will have debt recovery companies chasing you and asking for payment through phone calls, letters, turning up at your home or work. Returning to the business in which you borrowed an unpaid debt from will be impossible.

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Here at DollarDealers we do not offer payday loans. We loan responsibly and offer New Zealand’s best Pawn loans.

Our pawn loans come with:

  • No credit checks
  • No fees
  • No contact to your employer to check your wages
  • No risk of a debt collector obtaining your debt
  • Easy to understand contracts
  • Discretion
  • Customer service, we take time and care to explain our loan services

Pawnshops provide cash on the spot immediately after a deal is agreed, and here at DollarDealers we lend the most!

Come visit one of our highly skilled professionals at store levels and unlock the value in your item(s) today for quick cash now!

With 9 stores in Auckland, find your nearest store here: store locations.


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