When you find yourself short on cash to pay a bill, it can be hard to know what to do to get the money that you need. If you cannot borrow the money from friends and family, you may want to consider taking out a loan against something of value from a pawn shop. Many people do not realize that pawn shops offer loans to customers, as well as purchasing items outright. The following guide walks you through a few things to know about getting a loan from a pawn shop.
The Pawn Shop Will Need to Have Possession of the Item
When you get a loan from a pawn shop, the owner will not give you the loan and allow you to maintain possession of the item that you are using as collateral for the loan. If you choose to pawn jewelry, for example, you will need to leave it at the pawn shop until you repay the loan.
The Loan Will Not Be For the Full Value of the Item
When you put an item down as collateral for a loan, the loan amount that you will be offered will be far less than the value of the item that you are putting down as collateral. This is so that the pawn shop can make their money back if you fail to pay the loan in time. This makes the loan less of a risk for them.
The Loan Must Be Fully Repaid
Before you are able to get your items returned to you, you must repay the loan in its entirety. Be sure to keep up with the loan slip that you got when you got the loan so that you can prove the amount that the loan was for. Keep all receipts of the payments that you have made, as well, so that if there are any questions later on down the road you can prove exactly how much you have paid toward the loan.
If you have any issues with repaying the loan, it is important to contact the pawn shop as soon as you possibly can to inform them of the situation. Many shop owners are willing to work with someone who is honest with them and gives them advance notice that they are not going to be able to make a payment on time. They may give you a few extra days to make the payments if you ask them nicely.
Reach out to a place like 7th St Pawn Shop Inc for more information.