Pawn shops provide consumers with short-term loans secured by property. Getting money is very simple. Bring a valuable item-get money.


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Rates last updated October 25th, 2020



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What is a pawn shop?

A pawnshop is a shop or business that lends money to people who bring in valuables  to leave as a collateral in exchange of money. For example, it can be jewelry, watches, gold, cameras, musical instruments, televisions or computers.

Man can return his possessionsas soon as he returns the entire amount of moneyborrowed plus interest rate. Interest rate is considered a payment for using someone else's money for a certain period of time. If the person who borrowed money from the Pawnshop does not repay the loan and interest within the stipulated time, the Pawnbroker may sell the valuable thing to another customer to return the money he loaned.

Pawnshop Loans – how they work?

Pawn shops offer collateral-based loans. This means that the loan is backed by something valuable. You offer what belongs to you, and if the moneylender is interested, he will provide you a loan. Then the pawnshop keeps your item until you repay the money.

The loan amount, most often, is a part of the goods’ cost. Of course, you can sell your thing directly, but pawnshops do not really approve of these transactions, only because the loans bring much more profit to the store.

As you’ve taken the cash from a pawnshop, you get a pawn ticket. Don't lose it! This is not only a receipt for your goods, but also a brief description of the terms of your loan.

Pawn shops near me

I’'s possible to apply for a pawnshop loan online, but all the same you’ll need to drive to the office to complete the deal. Borrowing from a store has a number of advantages:

  • First of all, there you will quickly get answers to all your questions.
  • Secondly, you choose a convenient pawnshop for you, either near your home or near your place of work.
  • No paperwork
  • No credit check (After all you leave some item as a collateral)

Online pawn shops

If suddenly you can not go to one of the pawnshops, rest assured, you can apply online. You send a photo of your valuable item, confirm your identity, and soon you will receive the exact amount of credit that you can get. But most often this amount is not final. If you agree to all the conditions, your e-mail will receive further instructions on how to pack and where to send your thing. Don’r worry, 100% safety is guaranteed.

How does a pawn shop work?

 Here are all the necessary details on how the pawnshop system works:

  1.  A borrower offers a valuable thing and the pawn shop employee calculates the amount of credit that he can get (most often this amount is not the full value of the goods). Of course, there is an opportunity to just sell the thing, but it is not profitable for the pawnshop, so they refuse such deals.
  2. You get the money and a pawn ticket, you shouldn’t lose it, there is all the information about your stuff, and also information about the amount of money and interest that you have to pay.

Then there are two different variants of the process:

  •  If you have paid the loan amount+interest, you come to the pawnshop and take your thing back.
  •  If you suddenly failed to pay everything, pawnbroker has the right to sell your thing. Be careful

Pawn shops vs Payday loans

Pawn shops Payday loans
Up to 90 days 14-30 days
Collateral No collateral
Low interest rates Interest rates are higher than in Pawn shops
No credit check Soft credit check
Available for Bad credit Available for Bad credit

Read more: The difference between Payday Loans and Pawn Shops.

Why consider Pawn shop loans?

The loan is issued for up to 90 days, depending on the loan amount.

The most important advantages of a pawnshop loan are:

  • No paper work
  • No credit check
  • Lower interest rateInstant funding
  • Available to all people regardless their credit score
  • As a collateral, you can leave not only jewelry, but also equipment, anything up to ancient coins

Pawn shop hours.

In different pawnshops, the working time varies significantly. You can find pawnshops that work 24\7. But most often their working hours are from 10:00 a.m. to 7:00 p.m., at the weekends 10 00 a.m. – 5:00 p.m.  Pawn shop hours may vary 2 hours earlier or later.

Thus, in conclusion, we can say that Pawnshop loans should not be feared. The whole scheme is transparent and simple. You give your thing away in exchange for money. Pay back the money-get back your belongings.


Loans for ANY NEEDS
APR from 4.99%

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