pawn shop nearby

Pawn shop nearby throws a lot of lemons at us. Sometimes, the best way to make ends meet is with a short-term cash loan like a payday, title or pawn shop loan. But it is important to educate yourself before you get a loan to ensure it is the right option for you.

Pawn shops lend money to customers by allowing them to bring in items they own, such as jewelry, get a loan from a pawn shop and collectibles, which the store will then sell or resell. The pawnbroker gives the customer a “pawn ticket” explaining the item’s value, how much they owe in total and what the terms of repayment are. The pawnshop may also charge fees such as insurance and storage costs.

The Benefits of Using Jewelry as Collateral

Once the repayment period, or pawn term, expires, you can redeem your item by paying the owed amount (plus interest) back to the pawnshop. However, if you do not pay the pawnbroker back within the pawn term, they will usually sell the item to recover the money that is owed.

Pawn loans come with high interest rates that are considerably higher than personal loans and credit card rates, plus a risk that you could lose your property. If you are considering a pawn loan, consider alternatives that will allow you to improve your financial situation with an affordable payment plan, such as a personal loan from MoneyLion. Every on-time payment is reported to the credit bureaus, helping you build a positive payment history and ultimately rebuild your credit score.