Pawn loans are the predecessors of personal loans and were the only sources for borrowing money without much formalities and hassles during the good old days. The loans available from the formal sectors like banks, credit unions, and other financial institutions do not serve the purpose of people who need quick money to meet some financial difficulties.
Such requirements are usually not very high, and the formal lending companies do not find it feasible for their business model that focuses on high lending. In the pre-credit card days, pawn loans were the only source for emergency funding of any amount ranging from $100 upwards without any limit. The collateral used for pawn loans determines the loan amount based on the item’s value appraised by experts of the USApawnshops or companies.
Walk-in with an item and walk out with your money
The main attraction of pawn loans is that the lending process is so simple that you would feel like walking into the shop with an item; pick the cash left on the table and leave without looking back. Carry along with you the item you want to pledge as collateral and get it appraised by the experts of the pawnshop to ascertain its value. Suppose the guitar’s value is $600, and the pawn shop is ready to offer your $150 straight away. Yes, it is easy because the pawnshop keeps the guitar in its custody in exchange for cash. Now, it is up to you whether you want to get the guitar back by paying the loan on time or want to give it up for good and pocket the cash. Yes, pawnshops buy used items to run another channel of business that provides an additional revenue stream by selling the items.
Buy used items online
Although the term pawn mainly relates to lending and borrowing, the pawnshops you see today are online platforms for buying and selling. Besides acquiring items as described above, the pawnshops keep selling all used items in their inventory. Although the pawnshops sell used items, there is no reason to suspect the quality, which is as good as you can expect for any standard used item. On browsing the website of the pawn company, you can view all items that are up for sale and choose the one that you need.
Buy with confidence
From cars to bicycles to musical gear and electronics and smartphones and smart TVs, many more items are available from the pawn stores. Being used items, the products do not have the guarantee or warranty cover of the manufacturers. Instead, the pawn store assures the quality of the product by offering 6 month product protection plan, which is as good as a guarantee as you can replace the product within 6 months of purchase.
The store is ready to offer a replacement for the product during that time, provided you return the item in the same condition as when you purchased it.