Last Updated on February 16, 2024 by Saira Farman
If you’re ever in need of some quick cash because of an unexpected expense or a house payment but have a poor credit score, it may be challenging to get the loan you need. There isn’t ever a guarantee that you’ll be approved for a loan at a bank, so there are pawn shops. Even when your credit score is terrible, you can still get cash!
Pawnshops are designed to help you get out of sticky and urgent situations. They won’t judge your situation and deny you based on your precarious position. They are there to try and help you no matter what it takes. Your item might be worth $2 or $10,000; whatever it is, they will help you somehow.
Why a Pawnshop?
A pawnshop is a business that offers secured loans to people, with items of personal property used as collateral. Pawn Shops will buy, loan, and sell items. If you need that quick cash, visit a local pawn shop, and they will work with you to get you what you need.
What Do Pawn Shops Buy?
Make sure that what you bring in has been thoroughly tested and working because they won’t touch it if it isn’t working. Pawn Shops will loan or buy just about anything. They will buy jewelry, tools, electronics, guns, and ammo. You name it, they will take it!
What Do I Need To Get Cash?
You need to bring in your item and a valid I.D. Without an I.D., a pawnshop won’t take your item. It is required by law to have some sort of valid I.D. If you aren’t sure if a pawn shop will buy your item, call them ahead of time and see if it is something they would be interested in. You can even ask what a ballpark price might be to know if it is worth bringing the item into the store.
How Do I Get a Price on My Item?
One of the employees will ask you what amount you need, and they will look up your item and test it out, making sure everything functions properly. They will see what the item is going for, whether used or new. Then they will tell you their offer, and from there, you will have to see if that is a fair price to sell or get a loan on your item. If it is, you can agree on the price, follow-through, and get the amount you agreed upon. If not, you can walk out or look around and buy one of the many wondrous treasures in the store.
What Are Their Interest Rates?
Pawn shop’s interest rates typically range from 10%-15%, which is good. Because it’s not based on if you have a good credit score like the banks, bringing an oversized item in for a loan will cost you a little more, because pawn shops will charge a storage fee. Large items take up a lot of space.
How Long Is My Loan Good For?
Your loan is generally suitable for 30 days from the day you pawned it. If you can’t pay the original price that you got plus the 10%-15% interest rate on top of that after the month is over, then you can extend it for another 30 days. To extend it for another 30 days, all you have to do is pay the 10%-15% of the original price and that will save you for another 30 days. Not all pawn shops have the same rates though, so keep that in mind.
There are lots of different types of loans out there. They all come with different terms and interest rates. It’s essential to know those terms before you sign that contract. Make sure you understand everything about the agreement 100%. Please don’t be scared about asking questions because it will benefit both of you.