{"id":9515,"date":"2020-02-17T12:54:06","date_gmt":"2020-02-17T20:54:06","guid":{"rendered":"https:\/\/financer.com\/us\/?p=9515"},"modified":"2024-05-03T11:48:36","modified_gmt":"2024-05-03T18:48:36","slug":"pawnshop-loans","status":"publish","type":"wiki","link":"https:\/\/financer.com\/us\/wiki\/pawnshop-loans\/","title":{"rendered":"Pawnshop Loans"},"content":{"rendered":"\n
Pawn shops have existed for thousands of years with their origins being in Ancient China. They currently thrive by helping Americans with short-term loans<\/strong>. <\/p>\n\n\n\n Yet many people still wonder how do pawn shop loans work?<\/p>\n\n\n Short answer: <\/strong>A pawn shop is a licensed and regulated broker that offers consumer credit (fast loans) secured by personal property. Pawn loans are instant and do not improve or impair credit scores.<\/p><\/div>\n\n\n The main selling point is that pawn shop loans may be obtained quickly without any credit checks, lengthy application processes, or waiting periods. <\/p>\n\n\n\n They give cash on-site based on the collateral you are willing to provide.<\/p>\n\n\n\n In the past, pawn shops have been portrayed as dark, dingy, and dogy places. <\/p>\n\n\n\n Movies and the media pushed the concept of pawn shops as dark, grimy unregulated local stores where shady things would happen. This is not the case.<\/p>\n\n\n\n These days the pawn industry in America has more oversight. There are numerous state and local laws they must adhere to, as well as 15 federal statutes and regulations.<\/p>\n\n\n\n They must supply local law enforcement with transactional data regularly. The transactional information data ensures they are not purchasing or pawning stolen goods.<\/p>\n\n\n\n The National Pawn Association<\/strong> (NPA) helps local owners keep up to date with regulatory requirements and provides other business support.<\/p>\n\n\n\n All NPA members are committed to operating their business in a way that promotes a positive and professional image of the industry.<\/p>\n\n\n\n With over 10,000 establishments across the country, the pawnshop industry is a thriving and welcoming place to do business.<\/p>\n\n\n Note<\/strong>: According to NPA statistics<\/a>, 85% are family-owned independent small businesses.<\/p><\/div>\n\n\n The industry is legitimate and helps hundreds of thousands of people with jobs and loans.<\/p>\n\n\n\n If you need a small amount of money in a hurry, you may be able to take one of your possessions with intrinsic value to a nearby pawn shop.<\/p>\n\n\n\n They prefer items that many people value such as jewelry, coins, and firearms.<\/p>\n\n\n\n The local pawn shop will lend you money based on your item as the collateral. Of course there is a catch. <\/p>\n\n\n Note: <\/strong>Pawnbrokers don’t give you what the item is worth but rather a fraction of the value.<\/p><\/div>\n\n\n The pawnbroker keeps the item that you \u201cpawned\u201d until you return to pay the pawn loan back. On top of the pawn loan repayment, they will add fees and interest associated with using the service.<\/p>\n\n\n\n Interest usually accumulates over a standard 30-day period. <\/p>\n\n\n\n Rates differ depending on the value of the pawn shop loan. There are also transaction fees associated with the agreement.<\/p>\n\n\n\n If you need a more substantial loan amount, consider an online loan<\/a>.<\/p>\n\n\nRules and Regulations<\/h2>\n\n\n\n
How Do Pawnshop Loans Work?<\/h2>\n\n\n\n