Posted on: 4 March 2015
If you are in need of fast cash to pay some bills and do not have the time to wait around for approval for a loan from a bank, you may want to consider visiting a pawn shop to get the money that you need. A pawn shop will give you a loan based on the value of a piece or multiple pieces of valuable items. Jewelry, musical instruments, tools, and even furniture can be put down as collateral for a loan.
Use the following guide to learn everything you need to know about getting a loan from a pawn shop:
You Need to Understand the Payment Schedule
When you get a large loan from a pawn shop, the shop will set up a payment schedule for you. The entire amount of the loan will need to be repaid by a specific date, but smaller payments will need to be made each month. This gives the pawn shop peace of mind that you are going to repay the loan.
There are often grace periods included in the loan agreement, but it is important for you to take the time to understand exactly what they are and abide by them.
You Lose Your Items if You Default on the Loan
If you do not pay back the loan in full by the established repayment date, the pawn shop will then own your items free and clear. They can sell them in the store the same day and there is nothing that you will be able to do about it. The paperwork that you sign when you get the loan will specify the exact date that the loan will need to be repaid.
The Amount of the Loan Can Vary
The amount of money you can get as a loan for an item will vary based on the value of the item and how easily the pawn shop will be able to sell it. It is important to remember that the pawn shop is a business before a lending agency. The shop needs to be able to recoup their money if you default on the loan. You will not be able to get a loan for the full value of the item because the pawn shop needs to be able to make a profit, if they have to sell the item. Plan on getting a loan for roughly half of what your item is worth, when you go to a pawn shop.
When you get a loan from the shop, you will have to leave the item there at the shop until you pay off the loan. If you get a large loan based on the value of a vehicle, you need to be sure that you plan for how you are going to get home because the vehicle will not be able to leave the lot.
To learn more, contact a company like Naperville Jewelry & Coin Exchange with any questions or concerns you have.Share