When you need some cash right away and have no one to borrow it from, you might turn to a pawn shop. Pawn shops offer loans to people who need money, and these loans are easy to get and do not take long for approval. How much, though, can you borrow through a pawn shop loan? If you are wondering about this, it is helpful to learn the factors that pawn shops consider when offering loans.
Your Current Loan Status
The first thing a pawn shop looks at is your current loan status. Do you have an outstanding loan with the pawn shop? If so, what is your status on it? If you already have a loan with the shop, they might not give you another one. If they agree to give you another loan, they might decrease the amount they offer due to your current loan status.
The Value of Your Item
The second factor a pawn shop considers is the value of the item you are willing to pawn. When you pawn an item for a loan, you are not selling it. You are loaning it to the shop as collateral in exchange for cash now. You receive the cash now, but you must repay it if you want your item back. When you apply for a loan, you must bring something that is valuable. The shop will appraise your item to determine its value, and they will offer a loan based on its value.
The Pawn Shop's Rules
You cannot receive 100% of the item's value through a pawn loan. Instead, you receive a percentage of its value, and the percentage varies from shop to shop. Every pawn shop has rules about this. They might offer 25% of the item's value or more. If you bring in something worth $500, they might agree to give you a loan for $125. If they use 50% as the percentage, you might receive as much as $250 for the loan.
Get a Loan Today
According to the National Pawnbrokers Association, the average amount of a pawn loan is $150. While they might agree to give you more than this, they might also give you less. It depends on the factors listed here. You can learn more about getting a loan by visiting a pawn shop of your choice today. Look for one that is close to home like Wimpey's Pawn Shop.Share