Understanding Pawn Shop Loans

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Understanding Pawn Shop Loans

You may need a quick infusion of cash to pay a bill or deal with an emergency, and are considering pawn shop loans in Westchester. The good news is that pawn shops are a great solution for people who need money right away and want to avoid paying costly fees for check overdrafts or other charges. Pawn Shops follow more than a dozen federal laws and regulations, and they also follow additional state laws. Consumers who can’t get help elsewhere can get help at a pawn shop without background checks or complicated paperwork.

The Transaction

To get a loan from a pawnshop, take in something you own that is of value. If the pawnbroker is interested, they will offer you a loan and keep your property, or collateral, until repayment. The pawnbroker will give you a ticket for your transaction, and you must be sure not to lose this as you’ll need it to reclaim your property. It also contains the terms and conditions of your loan.

Repayment

The terms of your pawn shop loan include a date by which you must pay, including all added fees. This time varies between one and four months, and you can pay all at once. You do have the option of simply leaving your item at the pawnshop and not repaying the loan. In this case, it becomes the pawnbroker’s property and you cannot reclaim it later. You can also ask if the pawnbroker is willing to extend your loan period, though you will likely have to pay additional fees. Most pawnbrokers are more than happy to help their customers.

Fees

It is easier to think of the fees you pay at pawn shops as finance charges rather than interest rates. States have their own laws regarding how high these fees can be, though they usually range between 5 percent and 25 percent per month. When compared to the cost of a bounced check or a car repossession, getting loans from pawnshops end up saving consumers’ money.

What Should You Pawn?

Keep in mind that a pawnbroker must consider his ability to resell your item if you don’t come back and repay the loan. Something that may be of great value to you might not mean much to someone else, so it is best to try and get pawn shop loans Westchester for items such as jewelry, coins, musical instruments, and high-end tools.

If you need help right away, bring an item of value to a pawn shop. The pawn broker can offer you a loan to get you through a difficult time with no hassle.

http://www.bankrate.com/finance/personal-finance/pawnshop-101-what-you-need-to-know-1.aspx

Della Mullins

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