The History of the Pawn Shop
The art of pawnbroking has been around for centuries. Ancient Chinese followed by the ancient Greeks and the Romans were some of the first cultures to have access to pawn shops.
These early pawn shops were started to give the less wealthy the ability to get short-term credit in some way or another. Ancient pawn shops operated much like pawn shops do today. Are you curious to know exactly how a pawn shop works? Check out this article HERE.
Pawn Shops Today
Pawn shops have changed over the centuries, but the services offered are ultimately the same. Pawnbrokers today still offer their customers access to short-term lending without the need of credit checks, credit cards, or even bank accounts. One’s assets act as collateral in which the pawnbroker uses to make the loan. To see what assets are most commonly accepted, see What Do Pawn Shops Buy?
According to the National Association of Pawnbrokers, the nationwide average of pawn repayments is over 75%! This means that pawn shops are still a valid form of lending and necessity for most communities throughout the United States.
Who uses Pawn Shops?
One of the biggest misconceptions about pawn shops is that only the poor use them. This could not be further from the truth.
The truth is, all types of people from all walks of life utilize the benefits and flexibility of a pawn shop. We here at Plano Pawn Shop have customers that are former professional athletes, small business owners, executives in fortune 500 companies, and blue collar workers. One common trait amongst this diverse group is the need for fast cash without the long waits and high fees of banks and commercial loans.
Ask Your Bank for a $200 Loan
Have you ever had an unexpected emergency come up? A good or bad emergency? Imagine a horrible car repair, medical emergency or deal of a lifetime pops up but you need to leverage your entire paycheck to make the deal. This will leave you short until next payday. Let us say $200 will hold you over. Do you think you can walk into your bank and ask them to borrow $200? You can certainly try, but you will be extremely disappointed.
Today’s banks have numerous hoops to jump through before approving anyone for a loan. The paperwork alone would make a $200 loan not worth it in the eyes of most banks. This leaves many with no valid options. That is where a pawn shop fills a need in the community.
How Can We Help?
Do you need additional assistance? Would you like a little more clarification on the process of a pawn loan? We would be glad to help. We would suggest reading our article How Pawn Shops Work and What do Pawn Shops Take. These two articles will answer most, if not all of your questions.
For those questions unanswered, please feel free to give us a call during normal business hours, or stop by and ask one of our experienced loan consultants.