Hard economic times continue for many New Yorkers. Despite the weak recovery many still have a difficult time getting credit when they need it. They have no equity left in their homes and their credit cards are maxed out. They might have even tried a payday loan and didn’t like the experience. Cash Loans in New York are available from pawn brokers. While payday loans are tied to a person’s income, the loans from a pawn shop are tied to the value of an item. If a person is unable to repay the loan, then the pawn broker keeps the item and sells it.
Pawn shops love small items that hold their value well. They have a limited amount of storage space. While an antique chair might be worth thousands of dollars, a person should call before they arrive at the pawn shop with it. On the other hand antique gold jewelry is always welcome. Pawn brokers are known for giving out easy cash loans. The person brings their item into the pawn shop. An experienced employee will appraise it immediately. If the person likes the valuation, the staff person will explain how the loan process works. The borrower walks out with cash.
In addition to providing the item to secure the loan, the borrower also has to agree to pay a certain amount of interest. Usually the loan is for a short time period between 30 and 60 days. While the interest may seem high, it’s no higher than those charged by credit cards when a person has been late for a few payments. If it’s used to pay the utility bill, the interest will be less than the late charge or re-connection fee and the person keeps the lights on.
Over 97 percent of pawn shop loans are repaid on time. However, if a person can’t make the payments as scheduled, they should discuss making it a longer-term loan. Pawn shops depend upon repeat business and they always try and work out a payment arrangement that suits both parties. If the borrower can’t repay the loan, then the pawn shop keeps the item put up for collateral. That ends the process. There are never any harassing phone calls or threats.
