What is a pawn loan?
A pawn loan is another term for a collateral loan. We lend money on items of value ranging from high end watches, gold and diamond jewelry, silver, and firearms. Loans are based on the value of the collateral. When a customer pays back the loan, their merchandise is returned to them. You may extend the term of your pawn if you pay the interest fee.
How do I get a pawn loan?
It’s easy just bring in a qualifying item to get it appraised by our team of pawnbrokers then you can borrow up to that amount all you need is valid state identification.
How do you determine the value of an item?
We base pawn loan amounts on the value of your item. Our expert 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. The appraisal process varies depending on the type of items for example jewelry. Our brokers have access to the latest prices paid on precious metals and diamonds so we can get you the highest value on your item at any given moment. When jewelry is the collateral we test the precious metals and diamonds to determine their value. The diamond testing includes a visual inspection using a jeweler’s loupe, weighing the item, sizing (determining carat weight) any stones, and noting the cut/color/clarity of each. You may know this as the 4 Cs. In addition, we test the metal using a special digital gold tester that determines the karat of gold. This is done to ensure a clean test so there are no false readings on your item that may detract from what we can loan you. and unlike acid tests we don’t have to scratch off a piece of gold to test so you item remains in the condition you brought it in.
How long is the pawn term and what is the interest rate?
According to the Nevada revised statutes (NRS 646.050) A pawnbroker may charge and receive interest at the rate of 13 percent a month for money loaned on the security of personal property and all personal property must be held for redemption for at least 90 days after the date of pledge with any pawnbroker. Most other pawn shops charge the maximum interest rate possible but at John’s Loan and Jewelry we value our customers and their business so we only charge 8%. That’s almost half! and we also hold items for 4 months instead of the state mandatory of 3 so it’s cheaper for you and you have longer to get your items back.
What if at the due date I don’t have the money?
If you are unable to pay back your loan in full after 4 months on the due date, you may choose to renew your loan. 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 for the full loan term. This gives you another 4 months before you need to worry about losing your item.
If I do not repay my loan, will my credit be affected?
No your credit is never affected by a loan with us. If you can’t repay or do not wish to repay your loan, it will be forfeited after the term. If you forfeit your loan we will simply place your item for sale. Nothing is ever reported to any credit agencies. In fact you may continue to bring in new merchandise for additional loans anytime you need it.
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 our business. We establish relationships with our customers because they often borrow against the same items repeatedly. We offer non-recourse loans, looking only to the item being pledged to recover our investment if the borrower chooses not to repay the loan.
Are my items safe while they are in pawn?
While your item is in pawn, you still own them. It is our responsibility to keep it safe and in good condition while it’s in our care. In many cases your item is safer with us than in your own home. Your item goes into one of our many safes and is protected by 24 hour armed security. We are fully insured for full replacement value of the collateral we hold. If you item is ever lost or damaged you can feel confident that the item will be replaced with a like item.
Can anyone get information about my pawn?
Our customers are very important to us. We follow privacy laws set by the state and federal government. We do not release your information to anyone but you, except in the case of law enforcement as required by law.
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 try and get rid of 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. In addition, John’s Loan and Jewelry provides local law enforcement agencies with a copy of every loan transaction we do including the description and serial number of the item we have loaned on.