Pawn Shop FAQs Everyone Should Read
When you need to get cash quickly for a financial emergency, you can use any items you own that have value as collateral to get a loan from a pawn shop. Cash pawn loans are a little different from regular loans you would get from a bank or credit union. Before heading over to your nearest pawn shop location, we highly recommend reviewing the following pawn shop FAQs.
How Do Pawn Loans Work?
Pawn loans are collateral loans where you exchange an item of value for cash. In order to receive your cash, you must leave your item with the pawn shop until you pay back your loan. Your item is kept in a secure vault while it is held.
How Quickly Can I Get a Loan from a Pawn Shop?
In most cases, you can get a pawn loan right away and walk out with your cash in hand. All you need to do is bring the item of value, a driver license, or another government-issued ID. You must also be at least 18 years old, as you are required to sign a loan contract.
How Is the Value of My Item Determined?
The value of your item is determined using fair market rates. What this means is that the condition, age, and overall resale value of your item are taken into account. If the item is in great shape and high demand, then you often get more for it. However, do not expect to get full retail value for your item.
At GEM Pawnbrokers, we use various software applications and research tools to determine a fair value for your items. We do our best to offer you the most cash for your items as possible.
How Is the Value of Jewelry and Precious Metals Determined?
For jewelry and precious metals, like gold and silver, we have Gemological Institute of American (GIA) and Jewelers of America (JA) certified staff on hand at all of our locations. Our certified staff is knowledgeable about the current market rates and how to appraise jewelry, diamonds, gemstones, and valuable metals.
Just like other items of value, we attempt to offer you the most money possible, based on current market rates, resale values, and overall conditions of the jewelry, gemstones, or precious metals.
How Do I Get My Item Back?
To get your items returned to you, you simply pay off your pawn loan. Your loan contract will clearly specify the principal amount—the original amount of cash you received—plus any interest and fees you must pay back. The loan contract will also show you how long you have to pay off your loan.
How Much Are the Interest/Fees on a Pawn Loan?
At GEM Pawnbrokers, we offer the lowest loan interest rates in New York and the United States at just 4% PER MONTH! For instance, if you got a $100 cash loan, you would need to pay back a total of $4 in interest for the month, along with the original $100.
Do keep in mind, this is just a basic example and may not reflect the actual interest you owe or other fees. If there are any additional loan fees, these will be explained to you at the time you apply for your loan.
What if I No Longer Want the Item I Used to Get a Pawn Loan?
If you no longer want the item you used to get your loan, just let us know, and you will owe us nothing. We will take the item and resell it in our stores instead.
Can I Re-Pawn an Item to Get a New Loan at the Same Pawn Shop?
You can use the same item to get a new pawn loan at the same pawn shop as many times as you want. You will need to pay off your existing loan prior to being able to use the same item as collateral for a new loan. The amount of the new loan will be re-valued based on the current resale demand and overall condition of the item.
Are Pawn Loans Better than a Payday Loans?
Pawn loans can be a better solution when you need cash quickly, compared to payday loans. With a payday loan, you normally have until the next pay period to pay back your loan. Not to mention, the interest rate on payday advance loans can be significantly higher than a pawn loan.
Unlike payday advance loans, we will work with you to help you get affordable payments that fit easily into your budget. Our goal is to enable you to be able to get your items back if you still want them.
Will a Pawn Shop Let Me Use My Vehicle to Get a Pawn Loan?
At GEM Pawnbrokers, we do accept vehicles as collateral for pawn loans. We are one of the few pawn shops in New York where you can pawn a vehicle. Your vehicle will be appraised to determine its value. Our vehicle loan specialists take into account the make, model, year, mileage, and other factors when making a cash loan offer.
Do I Get to Keep My Car if I Get a Car Pawn Loan?
If you accept our car pawn loan offer, you must surrender your vehicle to us. We will store it in our secure storage facility until your loan is paid back. Many of our car pawn loan customers get a loan from us before the holidays and take advantage of our climate-controlled storage for their cars, trucks, and motorcycles during the winter months.
Am I Obligated to Get a Pawn Loan After Getting My Item Appraised?
No, you are not obligated to get a pawn loan after your items are valued. We understand how important your items are to you, and you may not always be willing to part with them. If you ever change your mind, stop by one of our locations, and we can continue the pawn loan process.
What Are the Loan Approval Rates for Pawn Loans with Bad Credit?
Your loan approval for a pawn loan is based on the value of your items, NOT your credit. So, it doesn’t matter whether you have good credit or bad credit. You can walk out with cash in your hand the same day!
Will a Pawn Shop Pull My Credit Report?
We don’t pull a copy of your credit report since your loan approval is based on the value of your items, NOT your credit history. Anyone can qualify for a pawn loan as long as they have items of value they want to use as collateral.
Can I Renew My Pawn Loan or Get an Extension?
At GEM Pawnbrokers, we offer extension options if you are not able to pay off your loan by the end of the repayment period. If you are interested in extending your loan, just pay the interest due for the current payment period, and your loan will be extended.
Can I Get a New Pawn Loan if I Have An Existing Loan?
It is possible to get a new pawn loan if you already have an existing loan with us. You will need to use other items of value as collateral for the new loan. Just keep in mind, each loan will have its own loan repayment contract.
Can I Buy Items People Did Not Want from a Pawn Shop?
Any items that were used to secure a pawn loan, where the person did not want them back, are resold at our pawn shop locations. Many items are sold at affordable prices, including electronics, video games, HD TVs, jewelry, watches, and more!
If you have further questions not answered by these FAQs or need a fast cash loan, please feel free to stop by your nearest GEM Pawnbrokers location or contact us at 718-596-5626 today! We have 24 convenient locations in the New York City Area. With over 70 years in business, we offer the highest prices on your items for pawn loans, friendly expert staff, and exceptional customer service.