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?
Rent to own.