A pawn loan is a short-term, secure loan through your local pawn shop. Simply put, you can get quick cash in return for collateral. What you use for collateral is up to you and the pawn shop broker based on the needs of the shop or how valuable your item is. The most important thing is that you pay back the loan on time and with interest per the agreement with the pawnbroker. Keep reading to learn everything you need to know about pawn loans.
Are Pawn Loans Legitimate?
The short answer is yes! As long as you are working with a reputable pawn shop in your area, loans are very regulated. There are 15 federal laws applicable to pawn loans to ensure you are protected. Additionally, the state and local laws manage details of these transactions including interest rates, loan durations and record keeping.
How Much is a Pawn Shop Loan?
In some cases, pawnbrokers will provide a percentage of your collateral’s value as a loan. Some pawn shops will give you the full value of the item depending on its worth. The average pawn shop loan is $150, though you can get loans for considerably more than this if you have adequate collateral.
What Can I Use as Collateral for a Pawn Loan?
Pawnbrokers will provide loans on items of value ranging from gold and diamond jewelry, musical instruments, televisions, electronics, firearms, and more. Some pawn shops may specialize in certain items, like antiques. If you are not sure if you have valuable collateral, call your local pawn shop to see if your item will qualify for an adequate loan.
How Can I Get a Pawn Loan?
Once the pawnbroker puts a value on your collateral, you can choose to accept it as your loan amount. They may require proof of ownership of the item to ensure it’s not stolen before agreeing to a loan. This may be in a form of receipt of purchase for the item, or some other sort of proof the item belongs to you.
After you accept the loan amount, the shop keeps your item and gives you cash on the spot. These loans do not require a credit check because you left a valuable item with the pawnbroker who can sell it if you fail to pay back the loan. You will need to show ID and be eighteen years or older to obtain a pawn shop loan. You then agree to pay off the loan in a specific time frame, usually between 30 to 60 days, as well as any fees and interest.
Loan extensions may be available if you cannot pay back the loan in full on the due date. A typical pawn loan has a term length of 30 days, which can include a 30-day grace period. If you cannot pay back your pawn loan in full, ask your local pawn shop if they can offer an additional extension. You should expect to pay a small fee to receive an additional extension.
Pros & Cons of Pawn Loans
If you’re unable to qualify for a conventional bank loan, a pawn shop loan is a good option to provide quick cash. Plus, there’s no legal requirement that you have to repay the loan, so your credit score won’t suffer and the loan won’t go to collections.
However, you may experience higher interest rates than a traditional loan, or if you fail to pay off the loan, you will be surrendering your collateral.
Need some quick cash? Remember the Alamo, on Transmitter Road! We provide quick confidential loans on just about anything of value. Ask about our VIP loans for small businesses, or individuals with high net worth in need of a quick cash loan! Special rates apply to VIP loans.
At Alamo Pawn Shop in Panama City, Florida, pawn loans are a quick and easy way to borrow money without a credit check or hassle. Loans are based on the value of your collateral, not your credit rating or pay schedule. A typical pawn loan has a term length of 30 days, plus a 30-day grace period. If you cannot pay back your pawn loan in full, including any applicable grace period, we offer extensions to give you extra time. You may also choose to surrender your collateral as payment in full.