A pawn shop is essentially a business that offers secured loans to people with personal property items known as collateral and is operated by a pawnbroker who oversees every activity in the shop. Collateral can be anything of value traded for cash. Whilst multiple commodities can be pawned, pawnbrokers typically accept musical instruments, electronics, watches, antiques, jewelry, power tools, cameras, gold, etc. Pawnshops have been around for the longest time with their fundamental intention of loaning people fast money. Ever since the beginning of time, there has been a great need for instant cash. In today’s society, the high demand for means to acquire money is startling. It has overseen the development of different varieties of lucrative businesses that will provide a cheap and fast source of money.
What do pawn shops offer?
Pawnshops are regulated by the state level in the United States, every state has its rules. Let’s take a look at how pawn shops me near work in the state of North Carolina.
If you haven’t been to a pawn shop, you are missing out on some great bargains. When you approach a pawnbroker, you’ll be able to:
- Buy new or used merchandise.
- Borrow money by putting up something you own.
- Sell used commodities.
For you to get money from the pawnshop by either pawning your item or selling it, there is a pawning process that the pawnbroker must follow. Once you bring your item to be pawned, there are laws that require the pawnbroker to establish the identification of the seller through photo identification such as a driver’s license. Afterward, the pawnbroker examines the item for marketability by testing for any damages. To assess the value of the item, guidebooks, catalogs, and search engines. The pawnbroker will typically lend you 25% to 60% of the item’s resale value.
Once you successfully pawn your item, you’ll in turn receive some money and a pawn ticket. The ticket will indicate the item you’ve pawned, the amount of money loaned, and the duration of getting your item back that is 30 days. Within the 30 days, you can return to the pawnshop to:
- Pay the full amount and retrieve your item.
- Pay the monthly fee to extend your loan for another 30 days.
If you can not meet the deadline for repayment again, the pawnbroker will keep your item for good.
As for the interest rate, the maximum interest a pawn shop in North Carolina can charge is 2% per month.
How pawn shops help.
You may be wondering what is so intriguing about a pawn shop. Why do people keep going back to a pawnshop for a loan when they could get it from a bank? Going to a pawnshop may not be as bad as you think, it could be a lifesaver when you’re in dire need. So how do pawn shops help people?
- Instant cash.
- Easy – the procedure of securing a loan is effortless.
- No credit check – if you have bad credit, pawnbrokers won’t deny you a loan.
- Low-interest rates.