As people find it increasingly difficult to pay their bills in the current economic climate, many more people have turned to pawn shops for loans. Pawn shops have become a go-to way of getting a fast loan easily but not all people view pawn shop loans favorably as they don’t appreciate the rules that they are governed by.
Like any other loan provider, pawn shops have to adhere to stringent rules and regulations under the law to give out loans. If you aren’t aware of how a pawn shop loan works read on to find out more.
How do rules and regulations apply to pawn shops?
The first rule that applies when you pawn an item to a pawn shop is that you have to prove that you are old enough to take out a loan. This requires you to show a government-issued photo ID card when you bring an item to pawn.
Some rules apply to what pawn shops can accept as collateral for a loan. Generally, most pawn shops accept a broad range of items as long as they hold enough value to be used as collateral in a loan. Some of the most popular items used as collateral are jewelry, watches, silverware and designer goods.
When you bring your item in as collateral for a loan, it will be appraised to determine its value and based on this a loan offer will be made. The loan is made up of two parts, the loan amount and the interest fee. Both amounts need to be repaid in full for you to receive the item back. During the loan term, the item is stored by the pawn shop.
The value of the loan will vary depending on the item and the offer made which could be anywhere from 25% to 60% of the item’s value. The loan length can be any length up to 120 days but you can repay the loan at any time without a penalty.
During the loan term, the pawn shop has ownership of your item and they are responsible for keeping it safe. They can not sell it during the loan period and can only sell it if you breach the loan terms or haven’t repaid the loan. In Florida, you have 60 days to return for the item before the pawn shop can sell it. There may also be a grace period in some states if you miss a loan payment of 30 days.
Pawn shops in Florida
If you want to find a pawn shop in Florida then you should visit one of our stores in Hollywood or Margate that are open six days a week and open until 7pm on weekdays. Florida Pawn has a great customer service reputation and comes highly recommended by our customers.
We offer fast and efficient collateral loans that can be completed in 15 minutes. We offer fair and competitive loan agreements that are transparent, and our friendly staff will walk you through the process. So call in and see what loan we can offer you.