Frequently Asked Questions about PawnShop Loans

    QUESTION 1: How does a Pawnshop work?
    ANSWER: Pawnbrokers lend money on items of value. JK Jewelry specializes in Jewelry and precious metals such as Gold and Silver. A customers' item acts as a form of collateral for the loan and there is no need to assess the risk of the loan as a bank would do. Once an amount is agreed upon by both parties a contract agreement between the Pawnbroker and customer is created. The length of the loan, the monthly interest charge and the identification of both the customer and item are included in the contract. A state issued picture id is required for any pawn contract. The customers pays the interest each month and is able to reclaim the item when the loan, interest and storage fees are repaid in full. The Pawnshop keeps the item in a secured safe during the time of the loan.
    QUESTION 2: Why should I consider a Pawn Shop?
    ANSWER: Pawnshops are the quickest and most convenient way for a person to borrow money. No credit check. No job background check. No legal impacts if the loan is not paid.
    QUESTION 3: What percent of customers lose or forfeit their items to the Pawnbroker?
    ANSWER: Almost 80% of all loans are repaid according to the Ohio PawnBrockers Association. If the customer decides to not pay the loan, it is an option that they have. When the customer decides not to repay the loan, they forfeit the item to the Pawnbroker. The Pawnbroker usually places the item for Sale so that they can recoup the money that was loaned to the customer.
    QUESTION 4. What happens if a loan defaults?
    ANSWER: No legal impacts exist since the item was the collateral that secured the loan. The item will become the property of the Pawn Broker. The Pawnbroker is required by law to inform the customer in writing 30 days prior to the customer potentially forfeiting an item.
    QUESTION 5 If I do not repay a loan do I still have the ability to get a loan on another item in the future?
    ANSWER: Yes --- If you have another item of value, you can still secure another loan from the Pawnbroker even though you decided not to repay the previous loan. Unlike a Bank or financial institution, your ability to repay a loan has nothing to do with whether the Pawnbroker will lend money to you. Everything is based on the value of the item that you intend to use for collateral.
    QUESTION 6. If I don't have a job --- Can I still qualify for a Pawn Loan?
    ANSWER: Yes -- Pawnshops will not ask you anything about your job. Everything is based on the value of the item.
    QUESTION 7. If I have a bad credit history or I have claimed bankruptcy can I still get a pawn loan?
    ANSWER: Yes -- Pawnshops will not check your credit history. Everything is based on the value of the item.
    QUESTION 8. What is the shortest amount of time that I can take out a loan for?
    ANSWER: The Pawnbroker is required to keep the item for a minimum of 72 hours. Anytime after 72 hours, the customer is free to pick up the item. However, the customer is obligated to pay a minimum of 1-month's interest and storage.
    QUESTION 9. What is the longest period of time that a loan can be taken out for?
    ANSWER: Indefinitely, as long as you stay current with the Terms of the Loan.
    QUESTION 10. How long does it usually take to get a cash loan from a Pawnbroker?
    ANSWER: The amount of time could varies depending on the item offered for Pawn, Some items can be appraised and a loan agreement reached within minutes, others may take longer. In most cases the customer can have the loan approved and cash distributed the same day.
    QUESTION 11. Can I have multiple items pawned at one time?
    ANSWER: Yes.
    QUESTION 12. Is my item and information ever viewable or accessible by other customers while I have a loan with the Pawnbroker?
    ANSWER: No. Your item is stored in a safe and the record of your sale is not shared with anyone. Local Law enforcement agencies are the only ones that have access to the PawnBrokers records and information.
    QUESTION 13. Can I just forget about the loan and sell my item to the Pawnbroker?
    ANSWER: Yes --- Pawnbrokers occasionally purchase items from customers. This depends on the specific pieces that you have to offer and the need that the Pawnstore currently has based on demand.
    QUESTION 14. If I forfeit on a Pawn loan, will it damage my credit history?
    ANSWER: No --- Pawned loans never impact your credit score.
    QUESTION 15. What is the smallest amount of money that a Pawn store will loan?
    ANSWER: Loans for as little as $25 can be secured through the Pawn Store.
    QUESTION 16. What is the largest amount of money that a Pawn store will loan?
    ANSWER: Loans can be as high as thousands of dollars. This depends on the value of your pieces.
    QUESTION 17. If I'm still confused amount the Pawn loan process who can I talk to?
    ANSWER: Any questions, just call JK Jewelers and we'll be glad to help you understand the Pawn loan process. The JK Jewelers phone number is 330-533-0300.
    QUESTION 18. If I just sell the Pawnbroker my item instead of taking out a loan, do I still need to show my state issued picture id?
    ANSWER: Yes --- It's the law.
    QUESTION 19. Why do Pawnbrokers work closely with local law enforcement agencies?
    ANSWER: Pawnbrokers work closely with the local Law Enforcement to ensure that merchandise is not stolen. It's not unusual for local law enforcement agencies to stop by occasionally and view our Pawn records. We appreciate this and believe that it increases the integrity and security of our merchandise. Potential criminals with stolen property are not likely to Pawn items since the transaction requires a Picture-id and Pawn records and articles are frequently reviewed by local Law enforcement agencies? That’s why less half of one-percent of all pawned merchandise is identified as stolen merchandise (according to the Ohio PawnBrokers association)..

If you have an additional question please contact our store and talk with Jeff.