By: Joseph Gilliam
Pawn Shops loan based on the value of personal property . The personal property is held until the borrower repays the loan including any fees.
The average APR and/or fees paid.
In most states the interest rates are regulated to fairly low levels (between 1-5% per month). In some states, they are regulated a much higher levels (25%+) or not at all.
The interest rate varies depending on what the pawn shop agrees too, however the total interest with fees can not be higher than 20%.
Three alternatives consumers
Rent To Own
If you don't pay they can take your property.