Pawning an item simply means receiving a collateral loan on any valuable piece of merchandise. A pawn transaction is a perfect solution to acquiring quick and easy cash, that is completely private, with no credit needed.
Pawn customers represent the working families of America who periodically experience an unexpected need for short-term funds.
Pawn loans keep the electricity on, the rent paid, and cars running with full tanks of gas by providing a safety-net to over 30 million unbanked or underbanked Americans. Close to one in four U.S. households are labeled as “unbanked or underbanked,” according to a survey by the Federal Deposit Insurance Corp., or FDIC. For these consumers, pawn shops are their mainstay “lending institution,” with every loan based on collateral items. Nothing else.
The loan is valid for 30 days, with a 30 day grace period, and can be extended as many times as needed. A pawn transaction is a perfect solution to acquiring quick cash with no credit needed.
Contrary to public perception, the pawn shop industry is heavily regulated, covered by 15 federal statutes and regulations. State-issued identification and thumbprints are required for every loan or purchase.
Pawn shops are required by law to report everything acquired for each day. Jewelry stores, coin shops, flea markets, and Craigslist, for example, are not required to do that. At least if something is taken from you and it ends up in a pawn shop, you have an opportunity to get it back.
The pawnbroker (company lending money) examines an item of value from a customer and both the customer and pawnbroker agree on an amount to lend the customer (pledgor). Each State determines the amount of time the pawned goods are to be held by the pawnbroker. On or before the due date of the loan, the pledgor may return to pick up his / her merchandise. The pledgor must repay the loan amount in full plus interest (interest amounts are determined by the state).
At the due date of the loan, if you cannot repay the loan in full, you may pay to the pawnbroker the interest amount due without paying the full amount. This will extend your loan an additional time unit (as determined by the state). If you cannot make any payments on your loan, the pawnbroker has legal rights to foreclose on the merchandise and sell it as his / her own.
Pawnshops can offer huge discounts on all items sold. Each pawnbroker may offer different discounts, so shopping around at different pawnshops is common for many people. In every pawnshop you will find neat and interesting items that you would seldom see at any other retail store.