We understand there can be many questions as to how loans work in a Pawn Shop. Questions such as:
How long is the life a loan? Will they take my item? How much can I borrow? Etc.
In this article, we will answer all the above questions and try to answer any other ones you might have in regards to the loan process.
Is there a credit check?
Our loans are collateral based, that means: there is no credit check. You just need to bring a valuable item (or items) to our store that we can appraise and use as collateral for the loan amount you need.
What items can I use as collateral?
A list of wanted and unwanted items can be found here. This is, however, not a fully comprehensive list. If the item or items you have are not found in the list, either on the accepted or unwanted sections, then feel free to submit an inquiry in either one of three ways:
1. By Text
You can send us the information via text to (760) 849-5083.
2. By Email
You can start an email conversation by using the form on the "Contact Us" page. We will reply to you from the email address you can send the information to. Sadly, we can't publish our email address. This is to avoid spam filling our inbox.
3. In Person
Feel free to come to our store during normal business hours. We are open Monday through Saturday from 10 AM to 6 PM, closed from 2 PM to 3 PM for lunch.
What information should I submit with my text / email inquiry?
Make sure to include pictures (by email it will be after you get a reply from us), brands, models, year of manufacture (if it applies), etc. Also, please make sure to include the amount you are trying to borrow. The more information you can provide, the better chances we give you an educated response.
Please note that we don't do jewelry-based appraisals over the phone, text or email. Jewelry must be appraised in person in store.
How does appraisal work? (non-jewerly)
We do our research based on current, proven resale value. We evaluate item's condition, specifcations and age. After determining the average price of the collateral, we make an offer that ranges from 20 to 40% of the estimated value.
It feels like a low offer ...
We undestand that sometimes, you might not get the loan amount you might expect. There are a lot of factors that we will go into to explain the process in a more comprehensive way:
Pawn Shops are a quick money option, sadly, it's not the best money. The best money can be achieve by selling your item on your own, but that means you have to get rid of your property. While we do buy items, our main business are loans, so there is the convenience of still owning your property, not just flash-sell it for much less than what it's worth.
At the same time, our loans must make sense in 2 different ways:
Make sense to you
We offer a loan amount that can help you in case of an emergency. Perhaps an unexpected bill, family emergency, or any other situation that may arise. At the same time, it's an amount that you will not want to lose your item for, making sense on your end.
Make sense to our store
The loan amount we provide must cover all unexpected scenarios, both ideal and not ideal.
In an ideal scenario, you redeem your item at the specified time-frame provided by the loan contract. You get your property back, we make a profit that takes care of all the expenses involved in the loan process.
In a not ideal scenario, we foreclose upon your item. Which means we must put resources into trying to sell the item, which might take days, weeks, months or even years. These resources include employee time, possible repairs, ecommerce or marketplaces fees, and depreciation, which is specially high with electronics.
How does the loan work?
We know there are a lot of caveats involved in the process and we needed to touch base on some of them, but once everything looks good, you will walk out of our store with cash in a matter of minutes, not hours.
Once a loan amount is agreed and we have some collateral we can work with. We proceed with the writing the contract.
We only need a recent ID. We take different kinds of identification documents, such as: Driver's License, State Issued ID, Passport, and Matricula Consular. It must be a physical ID form, no pictures or copies will be accepted.
The life of a loan is 120 days (roughly, but not exactly 4 months). You have this time frame to redeem your item or renew your contract. Please keep reading for details.
How to redeem your property
Only the person who made the loan can redeem their property, with some exceptions explained below.
Put it simply, to redeem your property, you must be present at the shop with your loan ticket, pay the principal loan amount plus the interest and storage fees, and that's it.
If you need someone else to redeem
If by any reason you are not able to redeem your item personally, the only way to redeem it is through a notarized authorization letter. You can request this letter, have it notarized and whoever you appoint to redeem will be legally able to do so.
In the unfortunate event of redeeming items from a loved one that passed, please contact us so we can help you better.
Another option can be to extend your loan, explained next.
How to extend (renew) your loan
In case you can't pay the full loan amount, you have the option to start anew and protect your property from foreclosure.
You need only to pay the interest and storage fees associated with the loan, and the contract starts for yet another 120 days.
A key difference bertween redeeming and renewing is that anyone can pay the renewal fee for the contract, not just the contract holder.
Fees associated with loans
Fees vary depending a few factors, here's an explanation:
Small loans interest
These loans are loans $1,500 and under, and are subject to a fixed rate interest fee. By state law, you enjoy a discount on interest if paid within the first 90 days from the beginning of the loan. The discount depends on the loan amount.
Large loans interest & fees
All loans $2,500 and over are considered large gloans. Contrary to small loans, the interest on these loans can range from 5 to 10% of the loan amount and it accrues monthly. While this loans are more conviniently to the borrower to pay sooner rather than later, they are still subject to the same 120 days loan life and need to be redeemed or renewed accordingly.
Big loans also have a contract writing fee that is added to the first month's interest.
Storage fees
Storage fees apply to all loans. Storage fee value is determined by the size of the item you are using as collateral.
Lost ticket fees
We recommend keeping your loan tickets in a safe, easy to retrieve place, like a wallet or glove compartment. Renewing or redeeming your property without a ticket will result in a fee of up to $10.
Is there a grace period?
Protected by the State of California, you are granted a 10 days grace period at the end of your contract, in which you still own your property for an accumulated fee. This extra fee comes due to the fact that you have entered a 5th month in your loan, which falls out of the scope of the contract's original time frame.
For small loans, the fee depents on the amount borrowed. For large loans, the amount is one more month's interest added to the current balance.
If we don't hear from you or come to an arrangement, after the 10 day grace period, your items will be foreclosed upon.
It's not our interest to keep anyone's property and put it out for sale, our interest is providing loans that help you in extreme situations, and earning your business should another need arise.
Reloans / Repawns
Reloans may happen due to a number of circumstances, the reloan process is easy and streamlined.
Just keep in mind that electronics depreciate more than any other item in the market. Which is why their value will be reassessed every 6 months from the day of the loan if necessary.
Contrary to electronis, gold gains value over time, so depending on the time of your last loan, you might get more when doing a reloan.
What happens next?
If you have any further questions, please don't hesitate to contact us at your earliest convenience.
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