As you may or may not know, anyone can walk into a pawn shop with their valuable belongings and use them to secure a pawn loan. Pawn shops have been around for a long time, and they’ve lasted as an industry for so long for a good reason: the way they do business. A highly rated, reputable pawn shop is a good place to sell your items for cash, or you can pawn them instead. While a pawn shop loan is still a quick way to get cash, getting a loan is different from straight up selling.
Pawn shops will accept valuables, like computers, musician instruments and jewelry, for both sales and pawn loans, but a pawn loan keeps your item as collateral until you pay back the loan. Here’s how to use your valuable possessions to get a pawn loan in Barberton, OH for fast cash.
About pawn loans
Anyone who has secured a pawn loan will tell you that this type of loan can be expensive. However, most shops don’t require a background or credit check. Basically, a pawn loan calls for putting up a valuable item as collateral to borrow money. The majority of pawn loans are for small amounts of cash—usually $150 or less, although some offer more for certain items—and there are interest fees in addition to paying back the principal. The interest varies from 10 percent to 100 or even 200 percent or more, depending on where you live.
As long as the loan is active, the pawn shop won’t sell your item. However, fail to repay or never return to collect it and the shop will get to keep your item or put it up for sale. Be sure you understand the payment due date and make payments on time.
How a pawn loan works
Getting a pawn loan is not too difficult. Below are the basic steps to follow:
- Bring in your item: Remember that a pawn loan requires you to leave an item with the pawn shop as collateral. The more valuable the item is, the more cash the shop may be willing to loan. For instance, something worth a few hundred dollars is more likely to be considered for collateral over something worth $50.
- Shop around for loan offers: The loan you’ll get is for a percentage of your item’s value, generally between 25 and 60 percent of its resale value. Unless you need cash immediately, it’s a good idea to shop around for the best available pawn loan offer.
- Loan terms: Know the terms of the loan. The payback time can vary between 30 days and a few months, and the interest you pay depends on state laws and your relationship with the shop.
- Leave with cash and a pawn ticket: You’ll leave the shop with cash as well as a pawn ticket in hand, which you’ll need in order to reclaim your item upon repayment.
- Pay it back: Repay your pawn loan in Barberton, OH and you’ll get your item back; fail to repay and the shop keeps your item.
Visit Sydmor’s Jewelry and Pawn Shop today to learn more about pawn loans and get some fast cash!
Categorised in: Pawn Loan
This post was written by Writer