Top 5 Misconceptions About Pawn Shops
Posted: Aug 22, 2017
Pawn shops are the most ancient manifestation of customer credit banking. Pawn shops have been in existence for over hundreds of years. However, due to the negative representation of the media, people have various preconceived notions and myths about the pawn industry. The Top 5 delusions about pawn shops are given here,
Pawn shops charge higher interest
In truth, the pawn shops cannot charge you interest on their own. This might have been true in the earlier centuries. But currently, every country has established a set of rules for pawnbroking. And in the United States, there are special regulations for the pawn shops on charging their interest. The interest rate of the Pawn shops in Kansas City is determined by the state too.
Pawn shops take stolen goods
It is not easy to pledge stolen merchandise in Pawn shops at Kansas City. When you pawn gold jewelry, you are required to produce your government issued identifications and your items would be monitored for their authenticity. Also, they check the descriptions and the serial numbers of the items with stolen property tracking system to make sure that they were not stolen. They work closely with the law enforcement officers and help them recover if there are any stolen goods and prosecute the thieves.
Pawn shops get things from you below the market value
Before approaching an establishment that offers cash for gold in Kansas City, keep in mind that they might not take your item for what you have paid in the retail. They generally rate your jewelry based on the scarp value of the gold. Also, Gold rate changes at each moment and the amount you receive depends on its market value at that time. You can always ask how they calculated the offer and if you are not satisfied with the result, find another pawn shop.
People often lose their jewelry to the pawn shop
On the contrary, at least 80% of the loans are repaid by the customers. Just like any other lending businesses, Pawn shops thrive on repetitive customers. Pawn brokers provide non-recourse loans, which means if you fail to repay the loan then they can seize only the pledged items and cannot ask for any additional compensation.
Pawn shops are for poor people
Pawn shop is the most convenient way to borrow money quickly and confidently. And because of this, they attract people from all economic groups, not just the poor.
This clearly shows that by taking pawn loans you can attain short-term money without any obligation.
The Author is an accountant and has written various articles on housing loans, financing plans and pawn shops in Kansas City. To know more, visit http://solskc.com
Sol's Jewelry and Pawn is Kansas City's premiere pawn shop that specializes in jewelry pawns only. We offer immediate cash loans for your everyday needs.