Pawn shops have grown in popularity thanks to a few interesting reality TV shows. They can be a great option when you want to sell something quickly or when you want to get an easy collateral loan, also referred to as pawning something. Whether your local is a pawn shop Jackson or elsewhere, here is some advice on how it works.
What is a pawn shop loan?
The process of leaving an item there for an agreed-upon amount of cash on the understanding if you do not repay the money plus interest they will take it and sell it, is a type of collateral or secured loan. They come with high interest rates so care needs to be taken but they are a handy thing when you need the money. Since they do not look at your credit history they are also an option anyone can take advantage of not just those with good credit scores.
Usually, the loan length is just 30 days though some will offer a little longer. Some will allow you to get an extension for extra costs, but not all. When you pay it back you get your item back. If you do not the pawn shop Brick or where you are will keep it and sell it.
How much can you get from a pawn shop loan?
First of all, you come in to have the item assessed. They do not accept everything, and some pawn shops have certain licenses or certain focuses. They will test it to see if it works, look at its condition and consider its value and marketability. Their valuation will be at the low end of its worth. Then the amount they offer as a loan is a percentage of that. So just because you walk in with a $500 watch does not mean you can get a $500 loan. It is more likely to be between $100 to $250.
What are the requirements?
One of the joys of the pawn shop Jackson loan is that there are fewer requirements for this option. You will need ID to prove you are an adult and you will need the item you intend to take a loan against. Some places may want proof of ownership with certain things. Some might need paperwork on certain things like firearms.
Popular items to bring in for a loan
There are a few common items that people typically choose to pawn for a cash loan. These are power tools, jewellery, antiques, coins, musical instruments, electronics such as modern gaming consoles, smartphones, laptops and gold.
A pawn shop Brick is a great opportunity for anyone to get some fast money when they need it. It should be used in just such situations since the interest rates are high. Never pawn something you would hate to lose either. Also, keep in mind they can be a great opportunity to find good deals as well. You could get a few gifts at Christmas all in one place!