Cashbox Jewelry & Pawn | Tucson

Pawn Store in Tucson

How Pawn Loans Work

Pawnshops and pawnbroking have been around for thousands of years. The basic idea behind any pawnshop is to loan people money. It goes like this:
    1.    You bring in something you own and give it to the pawnbroker as collateral for a loan.
    2.    The pawnbroker loans you money against that collateral.
    3.    When you repay the loan plus the interest, you get your collateral back.
    4.    If you don't repay the loan, the pawnbroker keeps the collateral.

Best Pawn Tucson

Pawn Loans in Tucson...

America is witnessing one of the most challenging economic times in years and pawnbrokers continue providing a crucial financial lifeline for its citizens.

Licensed, regulated pawnbrokers offer consumer credit secured by possessory security interests in personal goods and provide safety-net loans to approximately 30 million Americans. Pawn loans are an advance of funds based on a collateral security and do not trap consumers in a debt cycle. Each day, pawnbrokers help families through challenging economic times by providing non-recourse, short-term loans that have no impact on a consumer’s credit history.

Pawn customers appreciate this unique form of credit and tend to borrow only what they need, as evidenced by the relatively low national average loan amount of $80. Furthermore, pawn customers repay their loans and redeem their collateral at a correspondingly high average national redemption rate of 80 percent. These parameters appear to be holding constant, despite the current downturn in the economy.