A Basic Primer on Pawn Shops?

Answer 1

If you have never visited a pawn shop, the words may have a negative connotation. You will be pleasantly surprised to learn that a pawn shop serves multiple purposes and does not cater to criminals as you may have previously heard. Pawn shops give people the opportunity to sell possessions they no longer need to earn some extra money. Popular items sold to pawn shops include diamond rings, Musical Instruments and hunting rifles. Although these are more expensive items, you can also find such things as a $2.00 DVD at a pawn shop.

In most cases, you receive a check for your items on the spot. You may receive cash if you are selling only a small amount of merchandise. If selling firearms, you need to wait for a background check to come back before receiving your funds.

Pawn Shop Loans

Pawn shops also provide short-term loans to people whose bad credit may disqualify them from getting a loan elsewhere. A car title loan is a typical loan that you may be able to receive from a pawn shop. To apply for a car title loan, you must own the car and not still be making payments on it to a bank or a private party. You need to locate the original title of your vehicle and present it to a pawn shop employee. He or she will then look up the value of your car in the current Kelley Blue Book and assign you a loan limit based on its resale value. Since you are placing your car as collateral, you need to insure that you have the funds to repay the loan when it is due. Car title loans are typically written for less than one month.

Payday Loan Lenders

Many people have the mistaken assumption that they can apply for a payday loan at a pawn shop. While payday loan centers are frequently attached to pawn shops, the latter does not actually provide this type of short-term loan. If they do not have a payday lender on site, a pawn shop employee may be able to refer you to one.