The Pawn industry is a vital tool for someone in need of fast cash at a reasonable rate and term. Banks are not a small loan institution and payday loans simply are not a great alternative, yes they are fairly easy to get and no you don't have to part with your merchandise for a length of time. The flip side is that payday loan company's simply just make up the rate that you will pay for your loan. Take the time to research it for yourself. You will be shocked to see rates of 600% and higher not to mention hidden fees. The pawn loans here in Texas are heavily regulated by the state and loan rates are set by the Office of Consumer Credit. There are no hidden fees. Rest assured the rates are set so that the Pawn Industry will be a viable source for you as the consumer to obtain the funds that you need to handle the issue at hand. Pawn Rate Chart
How it Works
Customers pledge property as collateral, and in return, pawnbrokers lend them money. When customers pay back the loan, their merchandise is returned to them. Pawn loans are made on everything from jewelry to electronics. If the customer elects not to redeem his or her collateral, there is no credit consequence to the borrower and the items are sold at a value price to retail consumers.
Rates are set buy the state by the state of Texas through the Office of Consumer Credit Commissioner. Rate Chart (Click Here)
Regulations and Compliance
Pawnbrokers are governed by all of the major federal laws that apply to other entities designated as financial institutions, including:
USA Patriot Act
Truth-in-Lending Act
Bank Secrecy Act and IRS regulations requiring reporting of certain cash transactions
Trading with the Enemy Act and related Executive Orders and regulations
Privacy provisions of the Gramm-Leach-Bliley Financial Services Modernization Act
What is the deal?
Pawn stores offer collateral loans for surprisingly low interest rates with no credit check or hassle. They specialize in short-term small loans.
Pawn stores can offer this type of deal because the customer offers personally owned property as collateral, which significantly reduces the risk for the lender. When the customer pays the loan back, the property is returned. In the U.S., over 80% of all collateral property is re-claimed.
Pawnbrokers also lend larger amounts of money for more flexible periods of time at lower cost. If you take a secured short-term loan from a pawnbroker, you will only pay interest on the actual period for which you use the loan.
Secured short-term loans from pawnbrokers are highly regulated, and all the terms of business are clearly stated in a government-regulated contract.
So, if you are looking for a secured short-term loan and don’t qualify for a loan from your bank or credit union, check out what the Pawn industry has to offer!
What Do I Need?
You will need a valid state issued ID or Drivers License.
You will need to bring in the item that you want to pawn.
You must be 18 years old and have the legal right to pawn the item.
You must have a Texas license to pawn firearms.
“Bill money shortage? We can help!”
Examples of Items That We Loan On
Not Limited To
We will consider loaning on anything of value!
FIREARMS
SPORTING GOODS
JEWELRY-GOLD-COINS
WATCHES
COLLECTIBLES
MUSICAL INSTRUMENTS
ELECTRONICS
CAMERAS
CAR AUDIO
HOME & FASHION
GAMING
TOOLS
Items that we can't loan on or purchase
- Anything that has been defaced by with engravings like names, social#'s or DL #'s.
- Items that were purchased from a rental company that can't be confirmed that they have been paid off.
- Items that you do not have the right to loan or sell.
- Items that are mortgaged or financed with a balance.
- Items labeled state or government property. (Unless a receipt is provided)
FAQ
Frequently asked Questions
How does a pawn work?
A pawn is another term for a collateral loan. Pawnbrokers lend money on items of value ranging from gold and diamond jewelry, musical instruments, televisions, electronics, tools, household items, firearms, and more. Some pawn shops may specialize in certain items. Loans are based on the value of the collateral. When a customer pays back the loan, their merchandise is returned to them. A customer may also choose to surrender his or her collateral as payment in full. Pawn shops may offer extensions/renewals (where permitted by state law).
Why would someone go to a pawnbroker to get a loan?
Pawnbrokers offer the consumer a quick, convenient and confidential way to borrow money. A short-term cash need can be met with no credit check or legal consequences if the loan is not repaid. Pawnbroking imposes a discipline on the borrower that other lenders do not. Pawn loans do not cause people to overextend credit or go into bankruptcy.
What type of items bring the most for loan?
Typically guns and jewelry bring the highest amount on a loan although there are many items that can bring a max loan.
How much should I expect for a loan on my item?
Loan amounts vary according to the value of the item. There is no minimum dollar amount allowed on a pawn transaction but the maximum amount may be set by state pawn laws. Your loan amount will be determined according to other factors as well such as demand and condition of the item. Not all pawn stores are the same and price will vary.
How do you determine the value of the item?
Pawn shops base the value of the item on current appraised value, its current condition and the ability to sell the item. Pawnbrokers use research tools that they have at their disposal to determine an item’s value and get you the most money for the item. The appraisal process varies depending on the type of item—for example, jewelry is evaluated differently than a DVD player. All items that pawn shops buy or pawn are tested to ensure that they work properly.
How can I be sure the merchandise I purchase at a pawn store isn’t stolen?
Less than 1/10 of one percent of all pawned merchandise is identified as stolen goods. That’s because customers must provide positive identification and a complete description of the merchandise. This information is then regularly transmitted to law enforcement, which dramatically decreases the likelihood that a thief would bring stolen merchandise to a pawn store.
Are pawnshops regulated?
Yes, Pawnbrokers are governed by all of the major federal laws that apply to entities designed as financial institutions. The federal laws that regulate the pawn industry are Patriot Act, Truth in Lending Act, Equal Credit Opportunity Act, as well as Data Privacy and Safeguard of consumer information as part of the Federal Trade Commission (FTC) Rules. Pawn shops that deal in firearms are regulated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Pawn shops may also be Federal Firearms License holders. States have regulated the pawn industry for decades, and most pawnbrokers are licensed and regulated by local authorities as well.
Do pawn customers enjoy the same protections under federal law that customers of other financial institutions enjoy?
No. Pawn transactions are the only type of consumer credit that requires reporting to local law enforcement agencies. In many states this reporting is required daily, and must include extremely sensitive personal information about the consumer (i.e. ethnicity, gender, address). Much of this information qualifies as “non-public personal information” under federal privacy law and is entitled to protection as such.
Do most pawn customers lose their merchandise?
On average, about 80 percent of all pawn loans are repaid. Repeat customers make up a majority of the business, similar to any other lending or retail establishment. Pawnbrokers establish relationships with their customers because they often borrow against the same items repeatedly. Pawnbrokers offer non-recourse loans, looking only to the item being pledged to recover their investment if the borrower chooses not to repay the loan.
Are pawns rates excessive?
No. To provide their service, all lenders must charge rates commensurate with the size and duration of the loan, collateral, risk and recourse. Pawn transactions are small-dollar, short-term loans with no hidden charges.
What Is An Extension?
If you are unable to pay back your loan in full by the last day of grace, you may choose to get an extension on your loan. With an extension, you will be required to pay a portion of the interest owed then you may extend the length of your loan for as many days as allowed by state law. You may extend any loan you have with us as many times as you need to. We are fully insured for your protection.
What Is A Renewal?
If you are unable to pay back your loan in full on its due date, you may also choose another option to pay your interest called a renewal. With a renewal, you pay the interest that has accrued on your loan in full, and a new loan is written. The principal loan amount remains the same, as does the interest rate, but the due date is reset and provides you with the full 60 days before the interest comes due again.
Will I Lose My Merchandise?
Your loan/items are always safe as you keep your loan current. We will work with you any way we can to help you throughout the term of the loan.
If I Do Not Repay My Loan, Will My Credit Be Affected?
No, a pawn loan will ever reflect on your credit. If you can't repay or do not wish to repay your loan, it will be forfeited after the term. The item will be placed in inventory and sold at a discounted price. You may continue to bring in new merchandise for additional loans anytime you need it.
How Do You Determine The Value of An Item?
We base pawn loan amounts on the value of your item. Our employees have decades of experience in appraising the value, based on its current condition and market value. We use all the research tools we have at our disposal to determine an item's value and get you the most money we can.
Are My items safe while they are in Pawn?
While your item is in pawn, it still belongs to you. It is our responsibility to keep it safe. We are fully insured and secured. In most cases your item is safer with us than in your own home. We have a high end security system that is locally monitored 24 hours a day.
Are Pawn Shops Regulated?
Pawnbrokers are governed by all of the major federal laws that apply to other entities designated as financial institutions, including:
- USA Patriot Act
- Truth-in-Lending Act
- Bank Secrecy Act and IRS regulations requiring reporting of certain cash transactions
- Trading with the Enemy Act and related Executive Orders and regulations
- Privacy provisions of the Gramm-Leach-Bliley Financial Services Modernization Act
Are Pawn Shops Full Of Stolen Merchandise?
No! Less than 1 percent of items are identified as stolen goods. Pawnshops are actually the worst place to sell stolen merchandise, despite what you see on television or in the movies. Pawnshops are highly regulated, work very closely with local and federal law enforcement officials, and train their staff to be on the lookout for and identify stolen property.
I lost My Pawn Ticket, What Do I Do?
Unless you notify the pawnshop in writing that you’ve lost your ticket, anyone that can properly identify him/herself and present the correct pawn ticket may redeem your item. Written lost ticket notification will require the original pledgor to redeem the pledged item in person. This notification may be by mail, and each pawnshop has a form available to its customers for this.
I Missed My Due Date, What do I do?
You may redeem your item with associated interest up to 30 days after the due date. Give us a call, we want to help you maintain ownership of your items.
I came in to make a payment On My Last Day and you were closed, What do I do?
If our pawnshop is closed on the last day of grace, the time is extended to the close of business day of the next day we are open. We will work with you!
Burglary Items?
Inquiries should be made by giving the pawnbroker - within 30 days - a copy of a law enforcement agency offense report which adequately describes the stolen property. If there is evidence stolen property is or was in the pawnshop, the pawnbroker will notify the law enforcement office that originated the report withing roughly 2-3 days.
Fill out our Crime Assistance Form her:
Priceless Items?
If an item is truly irreplaceable, consideration of its loss should be made before pawning it. Sentimental value cannot be replaced.