What is a pawnshop?
A pawnshop is a business that is licensed to give you cash using your merchandise as collateral to secure the loan.
How does a pawnshop work?
Pawnbrokers lend money on items of value. These can range from gold and diamond jewelry to musical instruments, televisions, tools, etc.. These items maintain their value over a reasonable period of time and are easy to store, especially jewelry. Typically, loans are small averaging between $60 and $100, although they can be as small as $10 or as high as several thousand dollars depending on the value of the collateral.
What are the requirements to obtain a loan?
• You must be 18 years old.
• Have picture identification (Driver's License, State ID, Passport, FOID)
• Additional piece of identification with your name (piece of mail, SS card, credit card, etc.)
• Merchandise to use as collateral for the loan.
What kind of items can I use for collateral?
We accept gold, silver, platinum, jewelry, broken jewelry, coins, bars. We also accept musical instruments, TVs, laptops, game systems, DVDs, tools, and more.
How is my collateral evaluated?
• General Merchandise: We will research your merchandise to determine an average selling price on the used market. Age and condition are also taken into consideration while evaluating the merchandise. We generally loan 50% to 75% of the determined value. This will vary depending on the condition of the merchandise, your pawning history with us, and the type of merchandise it is.
• Precious Metals (Gold, Silver, Platinum): The value is based on the current market spot prices.
What are the terms of the loan?
It is a 30-day loan agreement which can be renewed by paying the monthly finance charge.
What is the default procedure?
If the loan is not renewed or redeemed after the additional 30-day holding period, the pawnbroker assumes title and ownership of the merchandise and may sell or dispose of it in any manner he deems fit.
Can anyone pick up my pawn?
You are the only one that we will release your merchandise to unless you designate someone else at the time the pawn is made. Picture Identification is required to pick up merchandise.
Can I get a quote over the phone?
All calls are welcomed and we can try to give you an idea; however, we cannot guarantee you a price over the phone. The more information (brand, model #, year made, etc.) you have on the item in question will help us in giving you a better idea of what we may be able to do for you.
Do you have layaway?
Yes, we require a 20% down payment with balance due in 30 days for general merchandise and 60 days on jewelry items.
What methods of payment are accepted?
We accept cash only on pawn transactions (picking up or renewing your loan). Credit and Debit cards are accepted for purchases.
Are pawnshops regulated?
Yes, pawnshops are regulated by federal, state, local municipality and/or county in which they operate.
In Illinois, the Department of Financial and Professional Regulation, Division of Banking, Pawnbroker Regulation Section oversees the licensing of pawnshops.
At the end of each business day, pawnshops are required by law to send to their local police department a copy of all the pawn and purchase transactions made.
How can I be sure the merchandise I purchase isn't stolen?
Less than one half of one percent of all loans is identified as stolen goods. Thieves and robbers are a pawnbroker's worst enemy. Pawnbrokers work closely with local law enforcement to catch and prosecute these criminals. A customer must provide positive identification at the time of the pawn transaction. This information is then presented to the police department, therefore decreasing the likelihood that a thief would bring stolen merchandise to a pawnshop. Pawnbrokers are trained to look for signs of stolen property to avoid these costly mistakes. It is not in the interests of the pawnbroker to accept potentially stolen merchandise because the police can seize the merchandise and the pawnshop owner loses the collateral and the loaned money.
Do most pawning customers redeem thier merchandise?
On average, 80 - 85 percent of all loans are repaid. Repeat customers make up most of our business. Pawnbrokers know the vast majority of their customers because they often borrow against the same items over and over again. 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. Unlike other types of loans, if a customer decides not to redeem the item in pawn, the item becomes the property of the pawnbroker.