Pawn shops have become part of the fabric of communities around the globe. They offer non-recourse loans to people who would not have been granted loans because of their credit score. Pawn loans in turn do not affect the credit score of a customer if he fails to pay the loan back because the Pawnbroker can sell the valuable items pledged as collateral to recoup his loan and to make a profit.
Instead of taking out a loan, you can also sell items you have no use for to a Pawn shop. It is important to keep in mind that Pawnshops make their money from loans and not so much on goods they buy and resell. This means that Brisbane pawnbrokers may be amenable to extending a loan period but you at least have to be able to pay the interest that is due.
Who uses pawn shops?
Anyone can get a loan from a pawnshop. The institution of Pawnbroking might have began as a way to help working class and poor people get loans in times of financial crisis, it has also become important for wealthy people who need a small cash injection to get through a bad month.
The fact that you don’t need to have a great credit score and the fact that failure to pay the loan back will not affect your credit score make pawn shop loans more appealing.
During this time of the year, people have to dig deep in their pockets to buy Christmas presents for their loved ones. The current global pandemic we are living in has affected many businesses and cut into most people’s incomes and livelihoods. Many people need financial help and there is no simpler and better way to get the cash you need than getting a pawn loan. The average amount of money that Pawnshops lend is $150, but it can go higher depending on the value of the items being pledged, their condition as well as the demand for them.
There are other ways of raising a loan but most lenders make it difficult for the average guy. They will have you jumping hoops to convince them that you are good for it. If you have a poor credit history, you can forget it. And then there is the issue of the interest rate.
The interest rate charged by most pawnbrokers can reach 30% a month, depending on the Pawnbroker. Some pawnshop tack other fees on the interest rate like service and security fees.
What can you pawn?
The most popular items with Brisbane pawnbrokers is gold jewellery and electronics. This is mainly because there is always a need for them which makes them easier to sell. Pawning rare, vintage goods can be a bit of a challenge. A one of a kind piece of jewellery that has been in your family for generations may be priceless to you and may even be worth hundreds of thousands of dollars to a collector but to a Pawnbroker, the amount of gold making up the jewellery and maybe the quality of diamonds and other gems are all that matter.
If you have jewellery that is priceless and has some immesurable sentimental value, pawning it for cash might be good because you can take your jewellery piece back.
How much can you expect to get?
Before pawning your jewellery you should try to find out what it’s worth. A Pawnbroker will not offer you the retail value or anything close to the retail value. Usually, Brisbane pawnbrokers offer 70 to 80% the retail value of the item as a loan. They might increase the value of the loan to about 80 or 90 percent if you have an item of great value and an item that is in great demand.