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Pawnbrokers lend money on items of value ranging from gold and diamond jewelry to household items, etc.

Generally, not all pawnbrokers are the same. Our process works as follows: Customers provide collateral, eliminating the need to distinguish high-risk from low-risk borrowers and providing a credit score. Typically, loans are small but can reach as high as several thousand dollars or more depending on the value of the collateral. Contracts vary from state to state, but the average loan period is 90 days. In NY it is four (4) months.

Interest rates will vary from state to state.

In New York, we are only allowed to charge 4 percent per month plus we charge (by law) a nominal service and insurance fee. Furthermore, this is the lowest interest rate of any state and is the main reason US Pawnbrokers are nationwide. The process is much the same as other lending institutions, with the primary difference being the size of the loan, the collateral, and the holding of the merchandise until the interest or the loan has been repaid.

Why would someone go
to a pawnshop to get a loan?

Pawnshops offer the consumer a quick, convenient and confidential way to borrow money. A customer receives a percentage of the value the broker believes the collateral would bring in a sale.

What is the foreclosure procedure?

If a customer defaults, the collateral becomes the property of the pawnshop after the loan is overdue by a specific amount of time (in NY the pawnbroker must mail you a notice of the defaulting pledge one month before the actual default date). You must redeem your item before or on the due date OR extend it by paying the interest owed and get another four months to pay your loan (5 months total since you receive a notice of default date warning one month before the default date.)

Do most pawning customers lose their merchandise? The national average is 70 to 80 percent of all loans are repaid - our average is 85 to 90 percent. Pawnbrokers offer non-recourse loans, looking only to the item pledged to recover their investment if the borrower chooses not to repay the loan. It is the choice of the customer to repay the loan.

Are pawnshop rates excessive?
NO – not in New York State.
The interest rate in New York is of the lowest of the 50 states in our nation.
What is the process of working with a Pawnbroker?

Most pawnbrokers deal in gold jewelry. Conversely, we exclusively accept gold, platinum, designer, status watches, and occasional estate jewelry. Loan consultants take their careful time and expertise to value your item and tell you how much they would be willing to lend. Many customers find the amount they receive is higher than they need. There are no credit checks, as your item is in our security. Pawn broking customers must be at least 18 and have valid identification. At the end, you receive cash and a pawn contract, reminding you that the item is legally yours for at least the next four months.

Are We Gem Pawnbrokers?

Some pawnbrokers deal in precious gems. We deal exclusively with gold, platinum, designer, status watches, and some estate jewelry. Indeed, pre-owned jewelry, or assets whose value appreciates over time. Gemstones like quartz or obsidian do not hold the same value as gold. With both gold and precious gems, loan consultants carefully value your item and tell you how much they would be willing to lend based on the value of the item. Furthermore, we focus on gold over gems because we value durable assets that maintain value over time. Our process is a relatively standard procedure for a pawn shop. Pawn broking customers must be at least 18 and have valid identification. At the end, you receive cash and a pawn contract, reminding you that the item is legally yours for at least the next four months.