Latest update August 6th, 2019 2:42 PM
How Does the Process of Getting a Pawn Loan Work?
So perhaps you have watched the popular History channel television show, Pawn Stars, and got to thinking about things you may have in your home or in storage that could be of value. You need a loan for something and this seems like an interesting and logical way to proceed. But you have never been in a pawn shop and are not really sure how the process works. Is it anything like the television show? We provide pawn loans Long Island and throughout the greater New York area. The process is simple, but if you would like to know more about it before you come in, here is how it works.
Pawn Loans Explained
Simply put, a pawn loan involves customers bringing in property as their collateral and the pawnbroker lends them money based on the value of the property. The pawnbroker holds onto the property or item until the customer pays the loan back. Pawn loans can be on anything of value such as jewelry, electronics, collectibles, household items, musical instruments, firearms, and more. The customer also has an option not to collect the collateral that he or she put down. In this case, there is no penalty or credit consequence. The pawnbroker simply keeps the item and resells it in the pawn shop.
Loan amounts vary based on the value of the item. Typically, pawn brokers base the amount they are willing to lend for the item from its appraised value. There are other factors as well such as the condition of what you bring in. Pawnbrokers are regulated by the same federal laws that apply to other financial institutions such as the US Patriot Act, Truth-in-Lending Act, and IRS regulations.
Why Get a Pawn Loan?
There are several benefits for getting a pawn loan. First of all, they specialize in short-term small loans and can offer really low-interest rates. Our pawn loans Long Island are at some of the best rates in the greater New York area. They can also lend larger amounts of money for flexible time periods at a significantly lower cost. This is called a secured short-term loan. This type of loan is highly regulated by the government and all of the terms are clearly listed in the contract. With a secured short-term loan, you only pay interest on the time period for which you are using the loan. This loan provides a great solution for someone who needs money but is unable to get a bank loan. For the best available pawn loans Long Island, come see us today. We have 28 locations in and around the New York area and Long Island.
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