Pawn Loans

Pawn Loans Definition

A loan based on the value of a property

How are interests rates and fees calculated?

Using the age- old technique of calling the main shops.

What is the average APR and/or fees paid?

Typically storage fees

What are the sources of this type of credit

The source of credit would any pawn shop such as midwest

When might a consumer seek this type of credit?

a consumer would use this type of loan if they do not have good credit and can't get a loan.

What are two advantages of this credit?

No credit checks

Even if the loan can't be repaid you aren't turned into a collection agency.

What are two disadvantages of this credit?

Loan is limited to the value of the property.

The loan is usually set no higher than 50%

What are three advantages consumers should consider before using this credit?

Payday loan

Title Loan

Rent to own.

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