With TV shows like ‘Pawn Stars’ becoming popular in the mainstream media, pawn shops have started to seem like an easy way out of a financial rut. All you need to do is sell any old valuables you have at home, and within minutes the money will be in your hands.
Pawning, however, is a more complex process. When you pawn an item, you are taking a loan against that asset. Here, the pawnbroker is entitled to hold on to that item until you repay the entire loan.
For people who don’t want to sell their valuables, taking a loan from a pawn shop is a more viable option. Let’s have a closer look at how pawn loans work, and what are their benefits.
How Do Pawn Loans work?
Since taking a pawn loan does not require a lengthy application process, it is a preferred option by many to get some quick cash.
A pawn loan involves using something valuable you own as collateral for an amount of money you wish to borrow. They are typically small amounts (an average of $150 or less), which you have to pay back along with interest within a defined time period. The interest varies – from as low as 10 % to more than 200% – depending on the place you live.
Once the contract is drawn up and you’re given the cash, consider the loan becoming active. If you fail to pay back the amount in full as per the terms and conditions, the pawnbroker can keep your pawned items to sell in the future.
Step By Step Process Of Taking A Pawn Loan
● Choose any valuable item you have that is worth a few hundred dollars to use as collateral.
● Take the asset to the pawn shop and see what amount the pawnbroker is willing to offer you.
● You will probably get a loan for a percentage of the item’s value. This can fall anywhere between 25% to 50%, depending on how precious the item is.
● Sign the contract. The interest and period of payback can differ as per the state laws and your relations with the pawnbroker.
● Once you are done, you will have the money and the pawn ticket that you can use later to retrieve your pawned item.
Why Take A Loan From Loudoun Exchange & Jewelry?
At our pawn shop, we offer loans on a variety of items, including gold, jewelry, electronics, musical instruments, computers, tools, and more. You can easily get a loan by bringing your item of value along with a valid photo ID.
Here are a few benefits of choosing Loudoun Exchange & Jewelry for your next pawn loan:
● No Credit Check
We don’t care about your credit score or paycheck! We will provide you a pawn loan as long as you can offer a valuable as collateral.
● Lower Interest Rates
Pawn loans usually have low-interest rates as compared to payday and title loans (their APRs are an average of 300 % or higher).
● Extended Time To Repay
The typical term length of our pawn loan is about 4 months. In case you are unable to pay back in full by that time, we offer renewals to give you some extra time to pay back. You can also surrender your collateral to make your payment in full.
Useful Tips For Taking A Pawn Loan
● Check other pawn shops as well and see if they are offering more money for your items.
● Make sure to take a picture of the pawn ticket as a backup. You’ll need it to retrieve your item.
Looking to earn some quick cash? Pawn your assets at Loudoun Exchange & Jewelry and get fair prices on all your items. For more information, call us at 703-777-2520 today!