Pawn Loans - The Secure Choice
Pawn shops and brokers have literally been around for centuries. They offer a badly needed service to society and let all people from all walks of life get a badly needed loan for their particular situation. Basically if you have anything of value, you can pawn it. This is a form of a secured loan.
Pawn brokers as stated have been around for many years, but they have not always had the better reputation as they do today. All towns small and large have these and most are heavily regulated by local and state governments.
Here is how they work.
You walk into the shop with your valuable item called collateral. This can be jewelry, stereo equipment, exercise equipment or even furniture. Anything of value can be used. The broker evaluates your collateral and you are offered an amount at some portion of the percentage of value of your collateral. Typically you could send about a 50% loan. This means if you have a diamond ring that is worth a thousand dollars, then they will let you borrow about $500. It may seem like a ripoff but that is how pawn shops stay in business.
After rates and fees you could see an effective interest rate of about 25% or so.
The length of this type of loan will generally be about a month or so and they are heavily regulate by local officials.
Collateral is the key and the great equalizer for the broker. It doesn't matter who you are, a lawyer, construction worker or even a doctor. Your credit could be bad or you may have no credit at all. The loan is based on the value of your item, not your credit worthiness. That is why this type of borrowing has been around for thousands of years.
See more information About Me here.
Pawn brokers as stated have been around for many years, but they have not always had the better reputation as they do today. All towns small and large have these and most are heavily regulated by local and state governments.
Here is how they work.
You walk into the shop with your valuable item called collateral. This can be jewelry, stereo equipment, exercise equipment or even furniture. Anything of value can be used. The broker evaluates your collateral and you are offered an amount at some portion of the percentage of value of your collateral. Typically you could send about a 50% loan. This means if you have a diamond ring that is worth a thousand dollars, then they will let you borrow about $500. It may seem like a ripoff but that is how pawn shops stay in business.
After rates and fees you could see an effective interest rate of about 25% or so.
The length of this type of loan will generally be about a month or so and they are heavily regulate by local officials.
Collateral is the key and the great equalizer for the broker. It doesn't matter who you are, a lawyer, construction worker or even a doctor. Your credit could be bad or you may have no credit at all. The loan is based on the value of your item, not your credit worthiness. That is why this type of borrowing has been around for thousands of years.
See more information About Me here.