How does a pawnbroker's business work?

Response: Pawnbrokers lend money on items of value ranging from gold and diamond jewelry to musical instruments, televisions, tools, household items, etc. Since the customer is providing collateral, there is no need to do a credit check. A typical loan is small, averaging $75 to $100. The interest rate charged by a pawnbroker is controlled by the state and varies widely across the nation. The pawnbroker is also required to hold the merchandise for a specific period of time, giving the borrower time to repay the loan. This hold period also varies widely but is typically in the 60-90 day time frame.

Response: Pawnbrokers lend money on items of value ranging from gold and diamond jewelry to musical instruments, televisions, tools, household items, etc. Since the customer is providing collateral, there is no need to do a credit check. A typical pawn is small, averaging $75 to $100. The interest rate charged by a pawnbroker is controlled by the state and varies widely across the nation. The pawnbroker is also required to hold the merchandise for a specific period of time, giving the borrower time to repay the pawn. This hold period also varies widely but is typically in the 60-90 day time frame. Question: Why would someone go to a pawnbroker to get a pawn? Response: Pawnbrokers offer the consumer a quick, convenient and confidential way to borrow money. A short-term cash need can be met with no credit check or legal consequences if the pawn is not repaid.  more