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How does a pawn work?

A pawn is another term for a collateral loan. We lend money on items of value ranging from gold and diamond jewelry, musical instruments, televisions, electronics, tools, household items, firearms, ATV's, and more. Loans are based on the value of the collateral. We appraise the collateral in a number of ways, the resale value being the main way.  When a customer pays back the loan, their merchandise is returned to them. A customer may also choose to surrender his or her collateral as payment in full. We also offer extensions/renewals on all pawn loans to give you more time to redeem your item.

Why would someone go to a pawnbroker to get a loan?

Ease, convenience and flexibillity! We offer the consumer a quick, convenient and confidential way to borrow money. A short-term cash need can be met with no credit check or legal consequences if the loan is not repaid. Our loans do not cause people to overextend credit or go into bankruptcy.

How much should I expect for a loan on my item?

How much should I expect for a loan on my item?

Loan amounts vary according to the value of the item. We have no minimum or maximum dollar amount allowed on a pawn transaction. Your loan amount will be determined according to other factors as well such as demand and condition of the item.

How do you determine the value of the item?

We base the value of the item on current appraised value, its condition and the ability to sell the item. We use many research tools that we have at our disposal to determine an item’s value and get you the most money for the item. All of our employees are also extensively trained on how to appraise your items  The appraisal process varies depending on the type of item—for example, jewelry is evaluated differently than a DVD player. All items that we buy or pawn are tested to ensure that they work properly.

How can I be sure the merchandise I purchase at a pawn store isn’t stolen?

Great question and one that is often stereotyped incorrectly.  Less than 1/10 of one percent of all pawned merchandise is identified as stolen goods. That’s because customers must provide a valid state identification and a complete description of the merchandise. This information is then regularly transmitted to local law enforcement, which dramatically decreases the likelihood that anyone would bring stolen merchandise to a pawn shop.

Are pawnshops regulated?

Yes, Pawnbrokers are governed by all of the major federal laws that apply to entities designed as financial institutions. The federal laws that regulate the pawn industry are Patriot Act, Truth in Lending Act, Equal Credit Opportunity Act, as well as Data Privacy and Safeguard of consumer information as part of the Federal Trade Commission (FTC) Rules. Pawnshops that deal in firearms are regulated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). All of our stores are Federal Firearms License holders.

Do most pawn customers lose their merchandise?

No, in fact a good percentage of our business is based on repeat customers getting loans against the same items they have redeemed in the past.  On average, about 80 percent of all pawn loans are repaid. In that way, repeat customers make up a majority of our business, similar to any other lending or retail establishment. We specialize in establishing relationships with our customers because they often borrow against the same items repeatedly.

Are pawns rates excessive?

No. To provide their service, all lenders must charge rates commensurate with the size and duration of the loan, collateral, risk and recourse. We can give you an instant cash loan for as little as 10% interest!

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