A Pawn is a short term, collateral based loan. Pawn loans do not require good credit, or bad credit. With a pawn loan, there is NO CREDIT check at all. Each loan is secured by merchandise. If you happen to default on a Pawn.
There are two main differences between pawning and selling your merchandise. If you want to get rid of your items, with no opportunity to come back for them, then you are looking to sell your item. In MOST cases, we offer more money if you are willing to sell your item.
If you want to come back and retrieve your merchandise, you want to “Pawn” it. In a pawn loan, title (or ownership) doesn’t change hands from customer to business until the loan is foreclosed. Often times, pawn loans are a little bit less than selling your merchandise, as we have to account for depreciation of your item over a longer (5 month) term.
Pawnshops offer the consumer a quick, convenient, and confidential way to borrow money. There is never a credit history check before we give you a loan — your merchandise alone determines your credit.
A customer receives a percentage of the value the pawnbroker believes the collateral would bring if sold. Although the loan to collateral ratio varies over time and across pawnshops, a loan of about 50-70 percent of the resale value of the collateral is typical. In other words, pawnbrokers feel their loan is “paid in full” at the time it is made.
Loans are based on the value of your collateral, not your credit rating or pay schedule. Typically, loans are small — the average pawn loan nationally is around $125.00 — but can reach as high as a thousand dollars or more depending on the value of the collateral.
A typical pawn loan has a term length of 120 days/four month, plus a 10-day grace period. The AJ’s Advantage gives you 150 days/5 months to pay back your loan! If you cannot pay back your loan in full, including any applicable grace period, we offer extensions/renewals (see below) to give you extra time. You may also choose to surrender your collateral as payment in full.
The vast majority of our customers repay their pawn loans and pick up their merchandise. The national average shows 70 to 80 percent of all pawn loans are repaid — our average at AJ’s Super Pawn is more like 85 to 90 percent.
We base pawn loan amounts on the value of your item — its current appraised value, its current condition and our ability to sell the item. We use all the research tools we have at our disposal to determine an item’s value and get you the most money we can. The appraisal process varies depending on the type of item. For example, jewelry is evaluated differently than a DVD player which is evaluated differently than a table saw, etc. In addition, items such as gold, coins, and jewelry maintains their value over a reasonable period of time, while items like computers and electronics depreciate much quicker, all of which is taken into account.
We base pawn loan amounts on the value of your item — its current appraised value, its current condition and our ability to sell the item. We use all the research tools we have at our disposal to determine an item’s value and get you the most money we can. The appraisal process varies depending on the type of item.
The condition of an item is always taken into account during the appraisal process. For example, if two televisions come in and one looks nearly unused and the other has a crack on the side, we will loan more on the TV that’s in better condition.
When it’s general merchandise you want to pawn, we test each item to ensure it is in good working condition. This includes, but is not limited to, a visual inspection, plugging an item in and turning it on, and noting if any necessary accessories (such as remote controls) and manuals are included. The better the condition of your item, the more money we can loan you. This is true for any collateral.
When jewelry is the collateral, we test the precious metals and diamonds to determine its worth. We have a full staff of trained associates to test the authenticity, grade, and quality of precious metals and stones.
The diamond testing includes a visual inspection using a jeweler’s loupe, weighing the item, sizing (determining carat weight) any stones, and noting the cut/color/clarity of each. Current market values of precious metals will also affect the value.
You must be 18 years of age or older and possess a valid government issued photo ID. That’s it. Simply bring us an item of value and we’ll get you cash on the spot after your loan is approved.
We can use a state Driver’s License or I.D. card, US Passport, US Military ID, or, for non resident customers, we can use your Matricula Consular card (As long as it is accompanied by proof of residence: Utility Bill, Payroll Check, etc).
Our loans last five months. Our interest rates are a flat rate within the first three months of the term so sometimes it may make sense to take care of it within that time. You have five months until the maturity date, where we also add an addition 10-day grace period time.
Loans must be paid in cash. While we accept credit cards for sales transactions and interest payments on loans, loan redemptions still must be paid with cash. If the time left on the loan is coming to an end, you do have the option to extend your loan even longer by only paying the interest fee.
No. If you cannot make it into the store to extend your loan, you may call up one of our associates, and they will text you a link that you can use to pay your Interest with a Debit Card (Credit Cards still cannot be used to pay interest on your loan, unfortunately).
If you are unable to pay back your loan in full on its due date, you may be able to get an extension on your loan. With an extension, you will be required to pay the interest owed, and get a replacement loan on your item.
A replacement loan has the same terms and time length as the original loan, giving you another 5 months to pay your loan off. Loans can be extended as many times as is necessary for you to redeem your items.
While your item is in pawn, you still own it. When you give us an item for pawn, we keep your merchandise — along with all accessories (remotes, cables, etc.) — in a secure area accessible to authorized employees only where it is safely stored until you come back to pay your loan in full and claim your merchandise.
In addition, we are fully insured for the loan value of the collateral we keep.
Yes. States have regulated the pawn industry for decades, and California pawnbrokers are licensed and regulated by local authorities as well. We are subject to such laws as Truth In Lending Act, Equal Credit Opportunity Act, Fair Credit Reporting Act, Patriot Act, and Federal Trade Commission Rules on Data Privacy and Security Transfer.
At the federal level, we are regulated by the Federal Trade Commission (FTC), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Treasury Department.
Contrary to popular belief, pawnshops are actually the worst place to try and get rid of stolen merchandise.
In fact, less than 1 percent of items are identified as stolen goods, and most of those are identified and reported to the authorities before being offered to the public in any way. In addition, while being highly regulated (see previous question), we also work very closely with local and federal law enforcement officials. Our staff is trained to be on the lookout for and identify stolen property.