Here at Mercury Pawn in Hampton, VA we know that the more you understand about the pawn process and how we determine a loan amount, the more satisfied you’ll be, and more likely you are to return to our store. With that said, in an effort to help you understand and become more comfortable with how Mercury Pawn operates, we’ve put together a list of our most frequently asked questions.
How does a pawn work?
A pawn is another name for a collateral loan. A pawnbroker will lend you money based on the value of an item you decide to use as collateral. Some items typically used as collateral to solidify a pawn loan range from gold and diamond jewelry, musical instruments, televisions, electronics, tools, household items, firearms and more.
How long is a pawn loan?
All of our pawns are 30 day loans and are renewable if you need more time to pay off the loan. We also understand that unforeseen circumstances can arise, as such we are always willing to help even if it means holding loans an extra few days without payment until a customer can catch up.
Why would someone go to a pawnbroker for a loan?
If you need a quick, confidential and convenient way to borrow money, then a pawnbroker is the way to go! A short-term need for cash can be fulfilled with NO CREDIT CHECK and NO LEGAL CONSEQUENCES if the loan is not paid back. A pawn loan does not cause people to overextend credit or go into bankruptcy.
How much should I expect for a loan on my item?
There are a lot of factors that will affect how much we loan on an item of collateral. Condition, age and general desirability of the item are just a few of the factors.
Should I sell or pawn an item?
There are a number of factors to consider, first, do you want to keep the item? Next how much money do you need? Typically you will get a little more money for selling an item, but then you cannot come back to pick up the item as if it were collateral for a loan.
Do you pawn, buy or sell guns?
Yes we do. Whether you want to buy, pawn or sell a gun to us, we can help you. Stop on by to get more information.
Are pawn shops regulated?
We most certainly are. Pawnbrokers are governed by all of the major federal laws that apply to business entities designed as financial institutions. The federal laws that monitor and regulate the pawn industry are the Patriot Act, Truth in Lending Act, Equal Credit Opportunity Act, as well as Data Privacy and Safeguard of consumer information as part of the Federal Trade Commission (FTC) Rules. Any Pawn shops that deal in firearms are also regulated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Pawn shops can also be Federal Firearms License holders. States have regulated the pawn industry for decades, and most pawnbrokers are licensed and regulated by local authorities as well.
Are pawn rates excessive?
No, they are not. All lenders must charge rates that are proportionate to the size and duration of the loan, collateral, risk and recourse. A pawn transaction is a smaller-dollar, short term loan with no hidden charges.