Why do people pawn?
Pawns are easy bridge loans for any number of cashflow needs – to help a small business owner cover payroll when an invoice is delayed, to cover a tuition bill, to cover funeral expenses before the insurance check arrives, for a family vacation – the reasons are as varied as the things that happen to all of us in life.
Pawning an item of value is a great solution because it’s a quick, straightforward and confidential way to borrow money. Rates may be lower than credit card interest rates and there are no credit checks and no impact on your credit score or legal consequences if you cannot repay the loan. There are no hidden charges.
When considering your options, remember that pawn interest rates usually amount to less than bank overdraft fees or credit card late fees. For example, a $1000 pawn loan at 4.5% for 30 days would cost only $45 - about what a credit card charges in late payment fees.
What is a ‘pawn’?
Pawn loans mean cash on the spot. A pawn is a simple, short-term loan. It is secured by an item of value (called the “collateral”). You bring your valuable into a licensed pawnbroker who assesses its market value and makes a loan offer. You can borrow whatever amount you need up to that offer.
Why should I pawn at Palisade?
The amount you’re offered on a pawn depends on the value of the item to the pawnbroker. The pawnbroker is weighing not just the value of the item itself but also his ability to find a market for that item, because he’s taking a risk that he’ll have to resell it to recoup the amount of the loan. As a licensed broker specializing in watches and jewelry, Palisade has deep knowledge of the current watch and jewelry trends and broad resources to resell items. We know collectors, and we know whether the style of a given item is trending or hard to sell. Typically, that allows us to offer higher valuations for pawning because we have multiple resources for recouping the item’s value. We are proud to offer pawn loans and work hard to make the process comfortable, secure, dignified and discreet for our customers. Palisade pawns from our beautiful jewelry store located in the heart of downtown Englewood.
What happens when I bring something to pawn at Palisade?
You’ll find our jewelry store on a busy shopping street in the heart of Englewood, NJ, with plenty of parking in the area. You’ll be greeted by our friendly staff. The owner, Ron, will personally work with you to discuss how much you need. He’ll assess your item, and make an offer. You will need to show a valid ID. You’ll sign a loan agreement and receive the offer in cash plus a pawn ticket – which is your proof of ownership. It will detail the item pawned, when payments are due and the amount of the payments.
The transaction takes only a few minutes.
We then record information about your item in detail and place it in secure storage. We carry insurance for all items we pawn.
How much can I expect for a loan?
With any item put up for collateral, it depends on the age, condition and make of the piece. That’s why we do not arrange pawns online; the original estimate you receive from an online pawnbroker may not be honored once you mail your possession to the website for evaluation.
We loan based on the expected resale value of the item - not the original price. We take the risk that the loan may not be repaid, so our offer is based on what we expect to be able to sell the item for, based on its value and the trends in the market. Palisade only makes high-value pawn loans of $500 and above.
You may be wondering whether different pawnbrokers make different offers. Within a range, you may get slightly different offers. The valuation of the item as collateral is based on three factors:
- The current market value of the components (its weight in gold, quality of gemstones)
- The condition of the item
- The ability to resell the item
Because we have been in business for so long and have developed strong networks and relationships, we have broad expertise in fixing a value for your item.
What kind of items does Palisade pawn?
Palisade specializes in pawning jewelry and watches because we have expertise in evaluating those items and a broad secondary market for their resale. We loan a minimum of $500.
What charges should I expect?
In New Jersey, the regulated limit on interest is among the lowest in the country, 4.5% per month. So, for example, a $1000 loan would cost $45/month. There is also a service charge allowed by law, but we do not collect it. A pawn agreement is for three months, and can be renewed indefinitely, as needed.
Is Palisade a licensed pawnbroker?
Yes! We are licensed and regulated by The New Jersey Department of Banking and Insurance, which controls the rate of interest we charge and governs pawnbroking practice.
Does pawning affect my credit or credit score?
Not at all. The loan is based on the value of your collateral, not your credit rating, pay schedule, or other personal financial information. A pawn loan has a term length of three months, renewable in three month installments. If you cannot repay the loan within the agreed time, the collateral becomes the property of the lender. There’s nothing more you need to do and the transaction is not reported to credit companies or tax agencies.
Will there be a credit check? Do I need to have a bank account?
Pawn loans do not require a credit check, bank account or co-signer.
How do I make the payments?
Payments can be made in person in the store or you can mail us a check. Cash or check only. Credit and debit cards are not accepted for any pawn-related payment.
A pawn is made for 3 months at a time. You can return to the store any time within that 3-month period to make your interest payments, or redeem your item. When sending a check, you must include your ticket. If you are renewing your loan, you will receive a new loan ticket.
Please note that there are no partial interest payments in pawning. The interest is per month and you are charged a full month’s interest for any portion of the month. For example, if you borrow $1000 for three months, the interest would be $45 per month, for a total of $135. If you decide to redeem your item after, say, a month and half, you would still pay two month’s interest, or $90.
When you are ready to redeem your item, you must come in person to the store. We do not ship redeemed items.
TESTIMONIAL
“My experience buying a pre-owned Rolex from Palisade Jewelers was perfect. I did the transaction by phone. The watch arrived, exactly as described; they gave me good, attentive service.”
- Richard
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