Pawnbrokers lend money on items of value ranging from gold and diamond jewelry to musical instruments, televisions, tools, household items, and more. These items maintain their value over a reasonable period of time and are easy to store, especially jewelry. All customers provide collateral, eliminating the need to distinguish high risk from low risk borrowers. There is no need to consider a customers ability to repay the loan because the value of the collateral should be sufficient for the pawnbroker to recoup the investment. And there is never any credit checking or reporting to any credit agency if a loan goes to default.
Typically loans are small averaging between $50 and $500, although they can be as small as $5 or as high as several thousand dollars depending on the value of the collateral. Contracts vary from state to state, but the average loan period is 30 days. Generally, interest rates and fees will also vary from state to state, and may vary with the amount of the loan. Pawn service fees and interest rates are regulated by the individual states' pawn law.
Simplifying the Process Pawn loans are based on collateral. This means that pawn shops loan money on an item of value like gold, jewelry, musical instruments, electronics, etc. While pawn shops offer other services such as buying and selling items, loaning money on an item of value constitutes the majority of a pawn shops business.
The main reason customers turn to pawn shops is that banks and other lenders simply don’t provide small dollar loans that help Americans meet unexpected financial needs. According to the National Pawnbrokers Association, the national average loan amount is $150, which demonstrates that now more than ever, Americans are in need of quick cash solutions. Unlike other forms of borrowing, pawn loans can never affect your credit. Pawnbrokers do not check your credit, nor do they report to any credit agency, ever!
If you’re thinking of getting a loan from us, here’s what you can expect:
You should determine ahead of time the amount of money that you need to borrow. Experienced pawn customers only borrow what they need.
Bring in an item of value such as gold, jewelry, electronics, musical instruments, etc.
Our expertly trained staff will appraise your item quickly and efficiently.
The value of your item is determined by the appraised value, as well as the current condition and our estimated ability to sell the item in case you default on the loan. The amount offered is based on the wholesale or resale/secondhand value and not the new price.
Based on your needs and the value of your item, we will make a loan offer.
If you are comfortable with the offered amount and would like to borrow the money, you will need to present a government issued ID. State law requires us to gather customer information and report all items taken in to law enforcement.
You will receive a loan ticket listing the terms of your loan. The ticket will include: maturity date, brief description of the item, amount of loan, interest rate, etc. The details will be explained to you by a member of our team. We encourage our customers to ask as many questions as possible to ensure that they fully understand the details of their pawn loan.
The loan period in Florida is 30 days. This means that you have this amount of time to return to our shop, pay the principal and all pawn fees and interest on the loan, and collect your item.
If the maturity date for the loan is approaching and you cannot pay the loan, you may extend the loan with your pawn ticket and simply pay the pawn fees and interest. A pawn ticket is then printed for another 30 day period containing the extended dates and terms. The principal remains the same. There is not a limit to the number of times you may pay for 30 day extensions.
When you are ready to pick up your item, just stop in with your pawn ticket, pay the principal and pawn fees and interest on the loan.
If you cannot pay the loan, do not worry. Defaulting on a pawn loan can never affect your credit. After the 30 day period, we hold your item for a 30 day grace period. After the grace period we are able to sell your item to recover our costs.
It's Up To You...
Do you get your pawned item back or let go of it forever?
You are not obligated to redeem your pawn. You can continue to use our services even if you choose not to redeem any item, remember, that is your choice. And we never report to any credit agency, so the default will never ding your credit.
Click here for information to sell your items outright