Almost anybody can have financial emergency at some time or the other. Suddenly, you may have an unforeseen expense like medical treatment, payment of school fees or paying installment for the mortgage. You will need money at a very short notice and your bankers can’t provide you the much needed cash at short notices. Under such circumstances, you may find it worthwhile to approach a few pawn shops in salt lake city and borrow money to tide over your immediate financial crisis.
In case you have not had experience of dealing with pawn shops or pawnbrokers, you would do well to familiarize with the working of this business before approaching one for borrowing funds.
What’s meant by pawn shop?
It’s a business wherein the pawn shop owner provides loans for short term against some security. Some such shops also allow you to buy or sell used or new items.
What’s the difference between a loan offered by pawn shop and payday loan?
Payday loan is a short term loan and available only to those with a proof of regular job and hence pay. If you fail to return the loan availed by a pawn shop, you simply lose claim of your item. There is no additional fee charged.
What’s the system of operating a pawn shop?
It is very simple. You call upon a pawn shop with some item which you can offer as collateral to the pawn shop owner, who assesses its value and offers loans you cash. Generally, you get about fifty percent of the assessed worth of the offered collateral as loan. Usually, the period of loan is ninety days, though it can be extended on paying additional fees. After you return the borrowed amount and pay the chargeable fees, your collateral is given back to you. On receiving a loan, you are given a pawn ticket which has the terms of loan in writing. The information to be provided on the ticket is defined by state or local laws.
What’s the maximum amount of money offered as loan?
This varies with the slc pawn shop you may opt to patronize and what you are offering as collateral. The loan can be as small as less than a hundred dollars and may go up to thousands of dollars. It largely varies with what you offer as collateral and the deal you negotiate.
What if I fail to return the loan?
In such an eventuality, the pawn shop simply retains your collateral.
What items can one offer as collateral for availing loan from a pawn shop?
You can procure loan against almost any item. Just remember that the pawn shop owner should be able to sell it in the event of your failing to return the borrowed amount. Of course, pawn shop owners use their discretion. Usually, they prefer small and costly items. Some examples would be coins, household electronic gadgets, cell phones, weapons and jewelry. Some may accept bigger items such as cars, motorcycles and boats.
Are pawn shops legal?
Yes, this is a legal business. However different states have different rules regards their operation and the type of services they provide to general public. It will be in your own interest as a consumer to deal only with licensed pawn shops.
There are quite a few federal rules and regulations applicable to pawn shops in salt lake city owners, pawn shop brokers and also consumers. The basic purpose of framing such laws is to check money laundering and restrict the rates of interest and fees chargeable from military personnel and to know the terms of credit.