What Is A Pawnshop – The Truth About Pawnshops
Pawn Shops are one of the oldest professions dating back to early civilization. A Pawnshop is a place of business where a person who is in need of cash can take their personal property and receive a cash loan. Pawnshop laws and regulations vary from State to State, City To City. Typically the Pawnbroker allows the person pawning the item (Pawnee) a time frame, usually 90 days (some states allow up to four months) to redeem his or her property. Within this time period the Pawnbroker is not allowed to sell the item in pawn but must hold on to the property for a period stated in loan contract. It is the responsibility of the Pawnee to redeem his or her property within the loan period. Once the loan date has expired, if the Pawnee did not redeem his property, the Pawnbroker is now free to sell the property and recuperate his money.
When receiving a cash loan at a pawnshop the Pawnee can expect to repay back the loan amount plus interest and fee’s. Interest and Fee’s vary, and largely depend on the actual loan amount. For example if you receive a $100 loan for your property, it will cost you $123.00 to redeem your property. You pay back the original loan amount, $100 plus $23 dollars of fee’s and interest.
Wait There’s More
Let’s say you are the Pawnee and your loan is about to expire, and you do not want to lose your property, what can you do? Typically if the Pawnee comes on or before the due date and does not have all the cash to redeem their property, the Pawnee can pay the interest fee’s and that will extend his loan for another 90 days. Here is an example I borrowed $100 for my item of value, my interest is $23, so my total cost to redeem my property is $123.00. My loan date is about to expire and I do not have $123 to redeem my item, all I have to do is pay $23 (interest and fee’s) and that will extend my loan for another 90 days.
Using A Pawnshop As Storage For Valuables
Pawnshops only deal with items of value. Therefore you can expect your valuables to be locked up in a vault or safe, especially if your pawning jewelry. Because the pawn loan is a period of 3 – 4 months depending on your state, many people use a pawn shop to store their jewelry. It is unlikely that a pawnshop will get robbed, some people feel their jewelry is safer at a pawnshop, locked in a safe rather than in their home, in a jewelry box.
Now that you know what is a pawnshop and how they operate, we invite you to visit us. We are opened 7 days a week!