How Do Pawn Shop Loans Work?
If you’ve ever needed money in a hurry, you may have wondered: “How does a pawn shop loan work?”
Pawn shop loans, also known as pawnbroker loans or collateral loans, are a useful way to get a few hundred dollars quickly. But before you get a pawn shop loan, you need to know how these loans work. Mo Money Pawn Shop is proud to be the top provider of pawn shop loans in Phoenix and the East Valley.
At Mo Money Pawn Shop, we understand that unexpected expenses can arise and strive to make the loan process as quick and stress-free as possible. We pride ourselves on being transparent and fair with our loan process, and our team is always available to answer any questions or concerns our customers may have.
What Is a Pawn Shop Loan?
A pawn shop loan is a short-term secured loan available at pawn shops. It allows someone to borrow money against an item of value. The amount borrowed depends on the market value of the collateral item, as well as its condition and potential for resell. Although this type of loan can be helpful in times of fiscal hardship, it does come with risks. If you cannot repay the loan within the agreed-upon period, then the pawn shop can keep your item and resell it in the store, essentially losing that item forever.
How Do Pawn Shop Loans Work?
When you bring your item to us, you’ll show your identification, and you may have to provide proof that you own the item. Our appraisers will then evaluate the item and offer you a percentage of its value. This amount can vary based on the item, but it’s usually between 25% and 60% of the selling price. If you agree to the pawn shop loan requirements, we’ll keep the item for a set period of time (usually one to four months). You can repay that loan amount, plus the agreed-upon interest and fees, at any time. It’s important to hold onto the claim ticket given to you; this is how you’ll get your item back.
The Pros and Cons of Pawn Shop Loans
Pawn shop loans have a lot of benefits, but there are a few other elements you should consider before getting one. Some of these include:
- No credit requirements. Your pawn shop loan amount depends entirely on the value of the item you bring in.
- No damage to your credit. If you can’t repay a pawn shop loan, it won’t be reported to the credit bureaus: we’ll sell the item to recoup the money.
- Fast money. There’s no lengthy application process, so most people leave our pawn shop with cash in hand.
Contact Us Today and Learn More About Our Pawn Shop Services
Since 1988, we’ve been proud to be the Phoenix area’s premier pawn shop. In addition to pawn shop loans, we buy and sell a wide variety of items. From jewelry and coins to firearms, electronics, power tools, and musical instruments, our massive showroom at 1152 E. Indian School Road, Phoenix, AZ 85014, is open for business between 10 AM and 7 PM daily. Our drive-up express window has even longer hours for greater convenience.
If you have any questions, you can contact us or call us at 602-279-4417.
Image Source: Miriam Doerr Martin Frommherz / Shutterstock