Your rent payment is due in just a few days, you are some dollars short, and the bank is not willing to give you such a small loan. So what do you do then? While searching for options, pawn loans can give families the small financial push they need to keep their house in order.
So, how does a pawn shop provide you with a loan? You bring in something of value, which maybe jewelry, electronic devices, or any other item of value. The broker inspects the item and gives you cash equal to a fraction of what it would sell for as a loan for a short period. The shop holds the item for that period of time and you have to pay the amount with interest in that time to get your item back. Otherwise, the pawn shop can sell it. You may also increase the time of the loan if you are not able to pay at the end of the period.
Pawn shops offer their customers a quick, convenient and reliable way to borrow money. Short-term cash flow problems need not upset your life too dramatically. As the opportunities for the short term, cash has ended, more and more people are relying on pawn shops to get short-term loans to fulfill their needs. People take small loans from these pawn shops to pay their tuition fees, car payment, rent and many other reasons as the bank is not providing them any loan and they have tighten things up due to the economic condition. Typically, pawn loans are small, ranging from $50 to $200, but they can even get higher depending upon the item you provide.
Your item is then safely stored until you pay back your loan, and then it is returned to you. If you are not able to pay the loan back or you have not enough money to pay the loan fully, then you can always give that money to the broker and ask for an extension. Then again, if you are not able to pay the loan then the broker sells your item.
You can also directly sell items to pawn shops for cash. We work closely with the police, too, to ensure nothing we bring in is stolen property.
If you have questions about how pawn loans work, give us a call or stop by Eureka Trading Company at the corner of 4th and D streets in Old Town Eureka.