Frequently Asked Questions
What is a Pawn Loan & how does it work?
A pawn loan is a cash loan that a customer gets for exchange of personal property. The item is stored with the pawnbroker until the customer redeems it according to the terms agreed upon, or the pawn contract defaults.
Once a pawn loan is processed, the consumer has 120 days (from the date of pawn) to pick the item with the payment of the principle amount and the final charge. If you can’t redeem your item, you also have the option of paying the interest to extend the loan another 4 months. If the loan is not repaid on time, including the interest, the pawn broker can legally sell the item.
One thing to be noted here is that during the loan period, the item is not up for sale. Thus items that are not redeemed become bargains for the other customers. And instead of pawning, items can also be sold directly to the Pawn Shop.
Therefore a Pawn Shop is run by pawn brokers who lend cash loans against various items that range from Gold, Silver, Diamonds, Jewelry, Musical Instruments, Electronics, Tools, and Collectibles etc.
What all items can one pawn?
One can pawn anything that has a resale value like Gold, Silver and Diamond Jewelry; Watches; Electronics like TV, Music Systems, Mobile Phones, Play Stations, Cameras, Laptops etc; Vehicles; Paintings & Art Works; Sports Equipment etc.
Can I pawn broken jewelry?
Yes. Precious metals are still worth something depending upon the prevailing market rates.
How is the valuation of an item done?
The value of jewelry etc is determined through the current precious metal or diamond wholesale market prices. The valuation of other items is done by their average online sale price and in-store salability.
What is the duration of the pawn loan?
We offer pawn loans of 4 months, all loans include a 10 day grace period.
What if I am unable to pay and redeem my item?
You can just pay the interest charges and renew your loan for another term. Visit us for more information about renewals.
What happens if I don’t repay my loan in time?
We at Gold & Silver Trading Co. do our best to inform our customers about the expiry of their loans & so you always have the option of renewing your loan. But if you don’t want to make a payment and redeem your item, you are not required to do anything else in which case our pawn shop will take the legal possession of the item at the end of the 10-day grace period.
Will my item be placed for sale when I Pawn it?
No, the title and ownership of your item remains with you until the loan defaults. Items are sold only when you fail to redeem the item or renew the loan at the end of the contract period.
Do I need to have a good credit history for being able to get a cash loan?
No, as pawn loans are backed by the collateral you bring and not your credit history.
Can I use a debit or credit card to pay for my loan?
Only debit cards can be used to pay pawn loans, however both credit/debit cards can be used for purchases from our store.
Will I be notified when my loan is about to expire?
Yes, we will send a text or mail notice when the contract has expired and you are in your grace period.
Is there a limit on how much I can borrow?
No as loans are based on a percentage of the collateral you bring. However some restrictions may apply, please visit our store for more details.
Are pawn transactions confidential?
A Yes, every transaction is safe and confidential. Moreover Pawn Shops are regulated on a local, state and federal level.
What is the interest that needs to be paid ?
Pawn shops are regulated by the Department of Justice and the local law enforcement which caps the interest on pawn loans at 9% over a 4 month period. An additional storage & writing fees may apply. Depending upon the amount you borrow & the tenure you choose, the interest rate could be lower. Pawn loan interest rates are usually lower than payday loans, personal loans, bank overdraft fee, & late credit card fee. We always strive to keep the interest rates low and competitive in order to make pawning with us a smart and affordable option when you are in need of quick cash.
How is buying at a pawnshop better than buying at a retail store?
The best part of buying from a pawn shop is that here you get merchandise at about 1/3rd or even half the prices as compared to the retail stores.
Why should one get a loan at a pawn shop?
Pawning is the best way to meet short term financial needs with no legal proceedings involved. The customer is given a pawn ticket which carries all the information regarding the pawn deal including customer’s personal information, date of the deal and description of the item, amount of the loan and the rate of interest. Therefore procuring a pawn loan is easy and a confidential way to meet your monetary requirements and get fast cash.
What is the loan procedure?
- Bring us your collateral and tell us how much you want to borrow.
- One of our pawn brokers will evaluate your item & discuss the allowable loan amount with you which is a percentage of the value that we believe the collateral would bring in a sale.
- Present a valid government issued photo ID.
- Sign the required documents & collect your cash.
Do Pawn Shops Sell Stolen Merchandise?
No, less than 1% items are identified as stolen goods. Pawn Shops are highly regulated and work very closely with the local and federal enforcement officials and have trained staff who are always on the lookout for and identify stolen property, therefore Pawn Shops are the worst places to get rid of stolen goods.
So if you don’t know what to do with your broken gold jewelry or unwanted items, perhaps it’s time to pay a visit to a Pawn Shop & turn them into quick cash!