When people have maxed out their credit cards and have no savings, their credit score is probably not high enough to get a bank loan. Pay-day loans have high interest rates and are limited by the person’s monthly income. Pawn shops are now one of the most popular places for people with bad credit to get a loan. Because the loan is secured by property, the pawn broker does not check the person’s credit score or income. If the person can’t repay the loan, the pawn shop doesn’t hassle them with phone calls, they just take the collateral and resell it. Gold jewelry is popular with pawn shops because most of them have a Gold Jewelry Shop on the premises. Regular customers know that they acquire unique pieces every day.
Pawn shops buy and sell all types of gold including necklaces, bracelets, pins, rings, lockets and charms. When a person walks into a pawn shop an employee will appraise the item immediately. He will first weight the gold using a very accurate jeweler’s scale. Some pawn shops give a bonus if the item contains more than 10 ounce of gold. He will then determine the whether it is 10k, 12k, 14k, 18k, 22k or 24k gold. The price that is paid reflects the daily price of gold on the scrap metal market. Because the pawn shop owner has to make money he will pay a percentage of that value. If he can’t sell the item in his Gold Jewelry Shop, then he can always make money on the gold scrap metal market.
Most pawn shop loans are 30-day loans. When a person take out a loan, he receives a piece of paper with the item that he pawned, the amount of the loan, the interest and any fees that are being charged. If the owner decides that he can’t repay the loan, the pawn shop owner takes the jewelry and sells it. He doesn’t report the non-payment to a credit bureau or attempt to collect the loan. Arizona EZ-Pawn is one of the pawn shops located in Sun City, AZ. People who have gold jewelry can bring it there to be appraised, sold or pawned. For more info visit us.
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