Have you ever experienced one unfortunate event after another? The refrigerator stops running, the car’s engine fails, and just when you think that things can’t get any worse—a family member gets sick.
Life as an adult is tough, especially when it throws lemon after lemon at you. Fortunately, there are ways to make money during difficult times. The solution? A pawn loan in Phoenix, Arizona.
How do pawn shop loans work?
The first step in acquiring a pawn loan is having collateral. Collaterals are valuables you pledge as security for repayment of a loan. Jewelry, designer goods, musical instruments, antiques, and high-end electronics are some examples of items you can use as collateral for a loan.
What should you know before getting a pawn loan?
Before you accept any money and skip happily out the pawn shop’s doors, it’s important to read and understand the loan agreement terms, which should highlight the following:
- The amount of money you are receiving for the item
- The interest rate you must pay
- The date in which you must repay the loan
You will get your item back as long as you pay off the loan in full along with any necessary fees. Keep in mind, however, that in the event that you can’t pay back the money you owe, then the pawn shop gets ownership of your asset.
Does credit matter?
Generally, pawn shops do not conduct credit checks, which makes pawn loans ideal for people with less-than-perfect credit. As long as you have collateral, then the chances are high that you are eligible for a pawn loan.
Are pawn shops regulated?
Federal laws that apply to entities designed as financial institutions govern pawnbrokers. To be specific, the federal laws that regulate the pawn industry include the Equal Credit Opportunity Act, Truth in Lending Act, Patriot Act, as well as the Data Privacy and Safeguard of consumer information as part of the Federal Trade Commission (FTC) Rules. States have regulated the pawn industry for several decades, and most pawnbrokers are regulated and licensed by local authorities.
A five-step guide on how to pawn in Scottsdale, AZ
The process of getting a pawn loan is so quick and simple that at Biltmore Loan and Jewelry, we can grant collateral loans in one day.
Here are the five basic steps you need to take to get money fast:
- Determine which of your possessions are valuable enough for pawning
This step requires you to channel your inner Marie Kondo. Declutter your home and determine which of your non-joy-sparking valuables could be offered as collateral.
From your great grandparents’ antique furniture to hidden fortunes in attics, as long as it’s worth some money, we buy or loan on most anything you own.
- Maximize your asset’s value
To receive the highest amount of money from a pawn shop, make sure that the item you will be offering as collateral looks as good as possible. For example, if your item is dirty, then go ahead and wipe it clean. If it’s looking a little dull, then shine it up.
Please read 3 Steps to Maximizing the Resale Value of a Designer Bag if you are looking to use your Louis Vuitton Speedy, Chanel Classic Double Flap Bag, or other luxury purses as collateral for a loan.
- Bring the item to a local pawnshop to get an appraisal
Set an appointment online or via phone call before bringing your item to our office in Scottsdale or Chandler, where we will appraise your asset and offer an instant quote for cash.
The amount of money you receive will vary depending on the value of your item. There is no minimum dollar amount on a pawn transaction, although state pawn laws may set the maximum amount. Pawnbrokers will also determine your loan amount according to other factors, including the demand and condition of the item. Not all pawn shops are the same and price will vary.
- Accept the money and leave your item in the pawn shop’s care
Once you receive a quote from our appraisal specialists, you must make an important decision: Are you willing to trade your item for a cash loan and accept the possibility of losing it for good? Remember, you risk losing ownership of your item if you fail to pay back your loan on time and in full.
If you decide to go accept our cash offer, then you will need to sign some papers before walking out the door with money in your pocket.
- Pay off your balance to reclaim your item
Sometime after accepting the cash offer, you must return to the pawnshop within the required amount of time to pay off your balance. As mentioned, paying on time and in full eliminates the possibility of losing legal ownership of the property.
The majority of pawn loans last for three to four months, although yours might be different. Your paperwork will disclose the date you need to return by, and it is your sole responsibility to adhere to the agreement terms if you want your asset back.
The Bottom Line
Ideally, you never want to be in a position where you have to pawn your prized possessions. However, if you find yourself in a financial pickle and need cash fast, then a pawn shop loan is one of the best options available. Plus, unlike bank loans, there is no credit consequence if you decide not to redeem your collateral.
Are you ready to take the next step? Contact us today
Now that you understand how pawn loans work, you might be ready to take advantage of one.
If you need cash and have an attic or basement full of high-value items, then you may consider a pawn loan from Biltmore Loan and Jewelry. Complete our online form now to request a free market appraisal. Our institution is one of the most reputable providers of upscale collateral lending services in Phoenix, AZ. We look forward to welcoming you as a customer.