Pawn loans

By: Joseph Gilliam

Type of Credit

Pawn Shops loan based on the value of personal property.

information

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

Payday Loan

Tittle Loan

Rent To Own

Advantages

You can get money fast. They will not look at your credit.

Disadvantages

Get an extension as long as you pay your interest and fees.

If you don't pay they can take your property.