In the 1950s, pawn shops were the biggest lender to the middle class. As credit cards became popular, pawn shops became less popular. Now with banks tightening their lending policies, many Americans have no place to turn. Pawn shops have once again become popular. The popularity of several reality television shows based in pawn shops has also made a new generation comfortable using them. Gold and silver watches are popular gifts at important life moments. They are often given as graduation, birthday, anniversary and retirement gifts. When people need emergency cash, they often decide to use the Watch Pawn Shop to pawn these gifts.
Watch pawn shops are really interested in the scrap value of the watch. If a person does not repay the loan, they know that they are guaranteed to get the scrap metal value. Because the Watch Pawn Shop has to make a profit, they only pay a percentage of the scrap metal value. If the watch owner agrees to the pawn loan, he signs a simple form that includes his name, the pawned item, the amount of the loan, the interest rate and the fee. It also includes the due date of the loan. Pawn loans are normally 30-day loans. The person can buy back their item at any time during the 30 days. If he doesn’t have the money, there is no hassle. The pawn shop keeps the item and the transaction is over.
People with assets prefer pawn loans to pay-day loans, because it ends at 30 days with a simple solution. If they default on the loan, they don’t have a loan that will continue to increase. The amount of the loan is only limited by the value of the asset. Pay-day loans limit the amount based upon the person’s monthly income. Pawn loans are also confidential loans. Even people who could get a bank loan, sometimes prefer to borrow money in private. No record of the loan will show up in a bank database or on their credit report. Arizona EZ-Pawn is one of the pawn shops in the Phoenix metropolitan area. People who have watches to pawn can visit them. Or click here.
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