People have been pawning their valuables for at least the last 2000 years and thanks to reality TV pawn shops have gained their own little spotlight in the public eye. That being said, there are still a lot of misconceptions about what pawning is and how these loans actually work. I own a pawn shop in San Diego called Diamonds Forever and we are a jewelry store but we also give out loans on all types of goods.
People have been pawning their valuables for at least the last 2000 years and thanks to reality TV pawn shops have gained their own little spotlight in the public eye. That being said, there are still a lot of misconceptions about what pawning is and how these loans actually work. I own a pawn shop in San Diego called Diamonds Forever and we are a jewelry store but we also give out loans on all types of goods.
FAQs
Do I have to make payments? For a standard 4 month pawn loan there is only one payment, when you redeem your item by paying off the loan and fees.
Why do I have to leave my items with you? We use the pawned items as collateral against the amount of money we loan out. Having the loan backed by property is an advantage because you
Can I get a smaller loan than what you’re offering? The short answer is yes. Pawn loans are often used to gain some breathing room until the next payday; and just like any other loan you should only borrow what you need. Getting the most money on a loan is not always a good thing, the redemption price and fees are going to grow with the amount you borrow.
What if the loan is due and I’m not ready to pay it off? This will vary from shop to shop, at Diamonds Forever we always allow our customers to pay the fees on their loan and start a new 4 month term. For example; let’s say a $2,100 loan might cost $2,200 for redemption at the end of 4 months and a client couldn’t make the full payment. They could just pay the interest, $100 and start another 4 month loan.
Will you sell my stuff when it’s in pawn? The answer is never, I can only speak for Diamonds Forever but all loan items are kept in a safe place where it won’t get accidentally sold, damaged,or lost. Once again Yelp and other review sights are great tools to find someone you can trust.
Once the loan amount is agreed upon and the customer is confident that their property will be safe I write up the loan document that protects myself and the borrower with a legally binding contract. The loan rates and fees are set up by the state of California so there is no gouging. I give my clients a copy of the loan and then I give them the cash!
