Pawn Shop Loan Options

A pawnshop loan is a short-term option for a buyer to get cash quickly by offering an item as collateral. A pawnbroker will appraise the item (such as jewelry or electronics) for its quality and market value in his region and store. He may also consider the item’s sentimental value. Once a buyer and seller agree on an appraisal, the shop will typically offer you a loan amount of 25%-60% of the item’s resale value. The pawn shop will keep the item until you return to pay back the loan plus interest within 30 days. Alternatively, you can renew or extend your loan for a fee. If you fail to repay your loan, the pawnshop will sell the item to recoup costs and profit. More info maxpawn.com

Jewelry Pawn Shop Guide: How to Get the Best Value for Gold and Diamonds

It’s important to compare the cost of a pawn shop loan with alternatives to avoid getting ripped off. Some pawn shops advertise their monthly interest rates, which can sound manageable, but Annual Percentage Rates, or APR, provide a clearer picture of the long-term cost. APR takes into account both interest charges and any additional fees a pawn shop may impose, such as storage or late penalties. APR lets you easily compare pawn loans on equal footing and can help you spot hidden fees.