Pawn Loans San Fransisco Guide

The Ultimate Guide To Pawn Loans

If you’re interested in learning about pawn loans – including what they are, how they work, and the benefits of getting one – then you’ve come to the right place. In this guide, were going to take an in-depth look at how pawn stores work, and why the concept of pawn loans has steadily grown in popularity over recent years. By the time you’ve finished reading, you’re going to be far more knowledgeable about every aspect of the pawn store trade – and you’ll also know a whole lot about pawn loans, too.

Firstly, let’s take a look at how a pawn store operates – because this is key to understanding the pros and cons of a pawn loan. In general, it’s best to understand a pawn store as a collateral loan business. By holding something of value that you’ve provided to them as collateral, the store will be able to loan you real cash.

Of course, the store also acts a retail outlet, and it’s possible to simply purchase items as well. But a key element of the business is how you can approach your pawnbroker to sell your unwanted items and use them to secure a pawn loan.

So what exactly is a pawn loan? Well, when you decide to visit your pawn store and hand over your possessions, the pawnbroker will give you a validation of the items, and based on that number, you will be able to receive the pawn loan. In general, the amount of cash you’ll receive will be a percentage of the item’s value – and it’ll usually be on the lower side.

The most common items used as collateral for these loan transactions tend to be expensive, yet small items – such as jewelry, or perhaps technology – such as an expensive camera or laptop. It’s also worth knowing that the percentage you receive will be lower if the item has a higher value. For example, if you have diamond earrings worth $8000 – you’ll receive a smaller percentage of that price. But if you have a digital camera worth $500, you can expect to receive a higher percentage.

Fortunately, pawn stores are very well regulated these days – so you can rest assured that the transaction will be safe, secure, and reliable. These stores have to be regulated at both the state and local level, and most states do a fantastic job of ensuring these places are safe and reliable to do business in, so you won’t get scammed at all. What’s more, the pawn broker should be fully insured in the case of theft or fire.

The amount of money you will receive when you take one of these pawn loans can vary dramatically, based on the value of the item you’ve exchanged. As previously mentioned, the money you will receive is only going to be a smaller percentage of the items true value, but this is because the pawnbroker isn’t technically buying the item from you – they’re simply storing it as collateral until you can pay the loan back.

This is often used for short term, low cost loans that rarely exceed $200 in value. In fact, most pawn loans are lower than this small amount.

So by now, you may be wondering how the pawnbroker makes any profit out of this arrangement? Like most systems of loaning, there is an interest rate involved – which can be quite expensive. Generally, these short term pawn loans wonít run for any longer than 30 days, and the interest rate will be anywhere from 10% to 20%. So if you take out a $100 pawn loan for 30 days, you may be expected to pay $120 back – at which point – you’ll also receive your collateral item back, too.

The interest rate you face may work a little differently compared to a conventional banking system. Often, the repayment will be set to a specific financial charge that you’ll be asked to pay at the end of the loan – so rather than having a variable interest rate – you’ll simply be given a specific dollar amount to pay back on the due date.
This is very efficient and convenient for many people, and it gives you a simple number to aim for. Based on our previous example, this would mean paying back $120 in 30 days time if you took out a $100 loan.

However, if you fail to pay back your loan by the agreed date, you won’t be able to receive the item back just yet. In most cases, this simply means the pawnbroker will hold onto your item until you have the money to back the loan back – but itís always important to check the terms and conditions about pawn loans before you agree to it, so you don’t wind up losing one of your most prized possessions due to a missed repayment.


In general, the pawnbroker trade is very strong right now, given the difficult financial situations many people find themselves in during a struggling economy. But despite the bad reputation that pawn brokering may have, itís actually a valuable lifeline for many people who need to get some fast cash to make ends meet.

What’s more, the system doesn’t touch your credit rating at all – so it’s a perfect option for anyone who has a bad credit record. The safety net provided by the pawnbroker is vital for many struggling families, and the system often works out best for everyone involved – especially when it comes to small loans under the $100 mark.

So now that you’ve finished this guide, you should have a much better idea about pawn loans and how they work.