When times are tough and your finances are getting the best of you, there is a way to help make ends meet. Pawning has been used since the 15th century as a way to get a cash loan against an item of greater value. This system allows for financial stability without high risks or consequences. Today, the pawn industry is regulated almost as much as financial institutions but is more streamlined and accomodating in comparison. This article is to inform people about the pawn process and how to get a collateral loan.
Pawnshops rely on items of value for collateral to obtaining a cash loan. Acceptable items include but are not limited to jewelry, gold, silver, platinum, Rolex watches, modern electronics, tools, sporting goods, game systems, automobiles, watercraft, etc. Whether or not your item has any value will depend on the particular pawnshop. There are many shops that specialize in certain items and not all are the same. Once you know your item has value, take it to your local pawnshop so it can be properly evaluated as far as functionability and condition. When a value is agreed upon, there will be a pawn form filled out requiring personal identifying information and descriptions of the items being pawned with monetary amounts. This form is a legally binding contract between the pledgor (person pawning) and the lender for the collateral loan and all amounts discussed. Be sure to notate the active dates of the pawn because there is a certain amount of time that the contract is valid. As long as the pledged goods are in pawn, there is a service fee. In order to renew the contract for another month, the service fee must be paid and a new contract signed. When the pawn is ready to be picked up, the principal and interest is paid to the lender. These are just the basics but you can find additional information as far as laws and regulations by visiting the National Pawnbrokers Association website at www.nationalpawnbrokers.org.
Check Us Out!