Pawn Shops in Villa Park Lend Money Using Gold Jewelry or Work Tools for Collateral

by | Jun 23, 2015 | Jewelry

Unexpected expenses such as expensive medical prescriptions and car repairs can happen at any time. If a person doesn’t have the cash on hand to pay them, they have to find someone to lend them the money. Often friends and family don’t have the extra cash, and banks won’t lend a small amount of money. As a result, people often turn to Pawn shops in Villa Park for these kinds of loans. They are preferable to payday loans. Because a person puts up collateral for the loan, they never have to worry about out-of-control interest rates dogging them for years.

Pawn shops in Villa Park prefer small items that maintain their value over time. Gold and silver jewelry are perfect to pawn. Work tools and musical instruments are also desirable items. Pawn loans are based on the value of the item and not on the person’s credit rating or income. When a person walks into a pawn shop for a loan, a member of the staff will appraise the item immediately. He will then explain the terms of the loan. Pawn shops charge interest to make money. The amount of the interest is determined by the size of the loan. Most pawn loans are for 30 days. While the interest rate may seem high, it is often lower than the late fee charged by a utility or credit card company.

A pawn loan will also be kept confidential. It will never show up on a person’s credit report. This is true even if the person fails to repay the loan. After a specified period, the pawn shop owns the item and is able to sell it. That is the end of the process. The borrower does not have to worry about bill collectors hounding them for payment. He will not watch the amount of money he owes skyrocket as the interest compounds every day. Even people who have access to bank loans or credit cards may prefer to do business with a pawn shop. They may not want other creditors to know that they are borrowing money. The RJ Jewelry and Loan Company is one of the pawn shops in the Villa Park Area. Visit the website to learn more about their services.

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