Article provided by: Carroll Collins Pawn II
Pawning off valuable belongings is an excellent way of obtaining a short-term loan without affecting your credit score. Carol Collins Pawn II is our family-owned pawn shop in Stuart, FL, and we accept various valuable items such as firearms and jewelry for pawning. If you have any questions, feel free to visit our store.
How do pawn loans work?
A pawn loan is a common type of short-term loan, where you put up valuable items as collateral to borrow money. How much you can borrow will depend on the value of the items you pledge to the pawnbroker. If the borrowers pay back the loan amount, the pawnbroker returns the items to them.
Typically pawn shops will accept all kinds of valuable items ranging from electronics to jewelry. At our shop, we accept items such as guns or precious jewelry. So, effectively, pawn loans are a form of collateral loan because the pawnbroker will sell the items you pledge if you default on the loan.
To determine the value of your items, and hence the amount you can borrow, a pawnbroker will research a variety of sources. They will consider the condition your items are in and the ability to sell the item, in the case of you defaulting on the loan.
What are the benefits of getting a pawn loan?
Pawn loans are one of the most convenient methods of obtaining a short-term loan. You don’t have the burdensome paperwork you get with a regular bank loan. Anyone who owns items of value can obtain a pawn loan in times of financial trouble. This makes it a more accessible type of loan compared to other types that require extensive credit checks.
Because there is less paperwork, you can get your money more quickly with a pawn loan (usually, within the same day). Due to their accessibility, pawn loans are also one of the best options for people with a poorer credit rating. Pawn loans don’t affect your credit rating, so if you cannot pay back the loan, your credit rating won’t suffer.
With pawning, you can redeem your valuables whenever you want, while only paying interest for the time you borrowed money. If you live in Florida and searching for a pawn shop in Stuart, Fl, contact us or visit our store.
What happens if you default on the loan
If you cannot repay the loan within the deadline in the pawn agreement, you could ask them if they can extend the deadline. However, not all pawnshops will agree to this.
If there’s no deadline extension, your pawnbroker will automatically get ownership of your items. If your broker decides to sell it, depending on the value of your items, they will notify you in advance to give you a chance to repurchase them.
If you need funds quickly and searching for a pawn shop in Stuart, FL, visit our Carol Collins Pawn II. You can pawn firearms and jewelry at our store.