Pawn Loan Benefits
Benefits Of Our Pawn Loans
There are times in life when you need quick cash for any number of reasons, but mostly it is because you need to catch up with some bills. You never know when an unexpected emergency will pop up, and that usually causes you to make tough decisions on what to pay for first.
If you have never been to a pawn shop before the concept is quite simple. They make loans on items that you provide as collateral. You can either sell the item outright to them for cash or you can pawn the item which is a loan. They pawn is usually for 30 days but can be extended for much longer as long as you pay a fee.
You get a loan based on the value of the items you bring in to pawn. Say you bring in a laptop computer, the pawn shop will assess the value of the laptop and based off of that they will loan you money. Now keep in mind if the laptop has a value of $500 you are not going to get anywhere near that in a loan. You may only get $150, but in order to get the laptop back after 30 days you will have to pay a fee on top of that which is usually 10% of the loan. You would have to pay back $165 dollars in 30 days or something close to that depending on the pawn shop and the laws in your state.
You can extend the loan past 30 days but then you are going to have to pay a much higher fee which is interest for each day that the item is held in pawn. However, there are many pawn loan benefits and if you are concerned about not being able to pay back the money to get the item, then that is a different concern of yours that you must figure out beforehand.
Pawn loan benefits can really help anyone in a money pinch since you can get quick cash on almost anything of value. You may be surprised to learn what items pawn shops will buy until you go into the store. They will buy household items, clothes, electronics, furniture, and even unused portion of gift cards. Depending on what state you are in, guns are big business in the pawn shops. You can get a nice loan for a well made gun if you truly are in need of more than a few dollars.
Keep in mind that pawn loan benefits should be considered short term only and not something you want as a long term financial solution. Although you can make a career out of scouting for items then selling them at a pawn shop, so that is an option too.
If you aren’t concerned with the appraisal value being low and all you need is a few dollars to get your through the next week or two, then a pawn loans provide many benefits to you. But in now way should you rely on pawn shops as a way to make income each week because they simply do not pay enough. There are a lot of other buyers out there where you can get top dollar for items if you plan on making a career out of buying and selling used goods.
There are usually many pawn shops located within the same geographically area, so it is in your best interests to see if you can get a better deal at another shop if you think they are lowballing you. Although it can be frustrating because you know your item is worth a lot more than what they are offering, but you need to look at it from the pawn shops point of view. If you don’t come back for the item they are now out the money they loaned you, plus they need to sell the item in pawn. Sometimes it can take a very long time for these items to sell, and if the pawn shop misjudged the market they can easily lose money on a deal.
With pawn shops being showcased on reality television now more and more people see them as a viable alternative to getting a loan. Sometimes you just have stuff lying around your house that you want to get rid of, a pawn shop can easily take this off your hands. You may have no interest in getting top dollar for it or placing it for sale in classified ads, then meeting the people. All of that can be dangerous. A pawn shop is safe and a good way for you to divest yourself of some clutter and also get a few dollars in the process.