If you need some extra cash, how much can a pawn shop loan you?
As your local pawn shop with locations on Broadway Street and Oliver Street, A-OK Pawn and Jewelry can share more about how these loans work. Below, we reveal how to get the most from your pawn loans in Wichita, KS.
How Do Pawn Shop Loans Work?
Typically, pawn shop loans involve you offering something of value to the shop owner as collateral. In most cases, the owner fronts you a cash loan (of up to 60% of the item’s value).
You both agree on the time frame within which you will pay back the loan and retrieve your item. If you cannot pay the loan back by the agreed-upon date, the shop owner sells the item to recoup their loss. Other stipulations and terms may apply, but that’s the gist of it.
So, what determines how much cash you’ll receive from a pawn shop loan?
How Much Can a Pawn Shop Loan You?
The shop owner can place the pawn shop loan value wherever they like. However, when they loan you the money, their goal is to profit from the transaction.
They might loan you slightly less money than the value of pawned items you use as collateral to make up this difference. At other times, there’s an interest portion to pay once you return to claim your collateral. If you don’t return, the owner profits from selling your collateral at full or nearly full value.
Now, how much can a pawn shop loan you? That entirely depends on your collateral’s resale value and whether the shop owner can quickly and easily sell it. The average loan cashes in at about $150.
Does Your Credit Score Matter for Pawn Shop Loans?
Traditional loans will look at your employment history, income, and credit score before they cover you. Wondering whether the same applies to pawn shops is fair but unnecessary.
If the pawn shop already has something of value in its possession, this will cover your collateral loan estimate. Your credit score and other financial information don’t matter in the greater scheme of things.
What Should You Bring for Collateral to the Pawn Shop?
The pawn loan amount depends on the collateral value. Different shops loan varying value percentages. An online pawn loan calculator might help you gauge an estimated amount.
For a substantial loan amount, bring high-value items, such as:
- Precious metals like gold, silver, or platinum
- Expensive gemstones, like diamonds, rubies, or sapphires
- Rare or costly electronic devices
- Luxury fashion items
- Antiques
- Rare collectibles
The item appraisal for pawn loans calculates the value of your belongings collectively. You’ll receive details of the full loan amount, their reasoning behind that price, and the loan terms for you to consider.
Need Some Quick Cash? Visit A-OK Pawn and Jewelry at Either of Our Two Locations in Wichita, Kansas
How much can a pawn shop loan you? Call our Broadway store at 316-529-8901 or our Oliver location at 316-440-7445 to find out! Our knowledgeable, helpful staff look forward to helping you out!