5 Pawnbroking Facts You Probably Didn't Know
The last few decades have been kind to the pawnbroking industry. The title of pawnbroker once carried a less than idyllic connotation. Pawnbrokers were viewed as useful, yet somewhat seedy loan providers for those who were down on their luck. This has never represented the true role of the pawnbroker but the reputation persisted nonetheless.
There are lots of modern television programmes that have propelled pawnbroking into the mainstream. If you are new to the pawnbroker experience here are 5 pawnbroking facts you may not know.
#1. Pawnbroking Has Ancient Roots
The act of using one's valuable possessions to secure money or necessary goods has roots in ancient history. There is reliable evidence documenting the use of personal collateral to gain money, or goods in Ancient Greece, Mediaeval Europe, Mediaeval China, and other historic civilizations.
#2. Pawnbrokers Help To Protect Your Credit Rating
Many short-term loan providers charge exorbitant interest for the privilege of securing immediate funding. What is worse, both short and long-term traditional loan providers are recourse lenders. This means that the beneficiary of the loan is legally obligated to pay back the original loan, as well as any interest or fees. If the loan and fees are not paid in full, there are severe repercussions including negative credit reports, legal action, and accruing penalty fees.
When you obtain a loan from a pawnbroker, you are under no legal obligation to repay the loan or any attached fees. The pawnbroker loans you money based solely on the value of your items. This means that there are no invasive credit checks required to secure your loan, and if you do not repay the loan, there will be no negative hit to your credit rating.
#3. Pawnbrokers Are Legitimate Small Business Owners
The majority of pawnbrokers are private business owners who live and work in the communities they serve. Pawnbrokers care about the well-being and safety of their neighbours and work closely with local public safety agencies to ensure that they are not receiving or selling stolen goods.
#4. Pawnbrokers Want You To Keep Your Treasured Items
Pawnbrokers may liquidate pawned valuables when a client chooses to forfeit the items rather than repay the loan. That being said, pawnbrokers prefer to act as short-term loan providers.
Most pawnbrokers will go out of their way to work with their clients to help them meet their obligations so that they can retrieve their items. Pawned items are generally held for an extended period of time after the loan payment deadline has passed to allow the client time to repay and collect their valuables.
#5. The Wealthy Use Pawnbrokers Too
Wealthy people often pawn their valuable items to secure funding, not just those without. The amount of the loan is often much higher, and the valuables used to secure these loans may include luxury items like Rolex watches, fine art, and even luxury watercraft and vehicles.
Cuttings Jeweller & Pawnbroker is proud to provide pawnbroking services to our local community. We are able to offer both small and large loans secured by a variety of items. Our expert team specialises in appraising and loaning on fine jewellery and other luxury items. Contact our jewellery and pawn experts today to learn how we can help you get the funding you need.