Pawning 101: How does a pawn work?
Updated: Jun 12, 2018
Are you curious how pawning works or why pawning is a good choice? It's an easy simple way to get money fast without a credit check.
How does a pawn work?
A pawn is another term for a collateral loan. Pawnbrokers lend money on items of value ranging from gold and diamond jewelry, musical instruments, televisions, electronics, tools, household items, firearms and much more. Loans are based on the value of the collateral. When a customer pays back the loan, their merchandise is returned to them. A customer may also choose to surrender their collateral as payment in full.
What are the benefits of getting a pawn loan?
It offers a quick, convenient and confidential way to borrow money. A short-term cash need can be met with no credit check or legal consequences if the loan is not repaid. Pawnbroking imposes a discipline on the borrower that other lenders do not. Pawn loans do not cause people to overextend credit or go into bankruptcy.
How much should I expect for a loan on my item?
Loan amounts vary according to the value of the item. There is no minimum dollar amount allowed on a pawn transaction, but the maximum amount may be set by state pawn laws. Your loan amount will be determined according to other factors as well such as demand and condition of the item. Not all pawn stores are the same and price will vary.
How is the value of the item determined?
Pawn shops base the value of the item on current appraised value, its current condition and the ability to sell the item. Pawnbrokers use research tools that they have at their disposal to determine an item's value and get you the most money for the item. The appraisal process varies depending on the type of item. All items that pawn shops buy or pawn are tested to ensure that it works properly.
If you have any questions about pawning or if you want to know the value of an item, we would be happy to help you. Visit A Pawn USA in Clermont FL or call us at 352-242-2240.