Curious about pawnbrokers? Many people are aware of the service but find themselves confused about the how the process works. At the most basic level, a pawnbroker provides clients with a small loan using the customer's valuable property as collateral. To provide a more thorough breakdown, the experts at the oldest pawn shop in High Point, NC, Coins & Stuff, offer a more detailed explanation of the service and how it works.

What Does a Pawnbroker Do?

When you decide to pawn your items at your local pawnbroker, the amount of the loan is based on the worth of the goods. The pawn shop will make an offer based on the resale value of the items, and then you can negotiate the length of the repayment period. When both parties have come to an agreement, you will sign a contract, and the pawnbroker will hold onto your items until the chosen due date.

How Does Repayment Work?

Typically, repayment for the loan occurs with a lump sum instead of installments. You will also be responsible for paying interest on the loan which usually accrues on a daily basis. When your due date approaches, you'll be required to repay the full amount of the loan, including fees and interest, and then your pawn will be returned to you. You can also repay the loan earlier than required.

What Is the Advantage of Pawning Over Traditional Loans?

Differing from other types of loans, a pawn relies on the collateral of goods such as jewelry. This arrangement is popular for many individuals because it doesn't require the use of a credit score and they don't have to worry about negative credit reporting. If a person is unable to meet their repayment date, they simply forfeit their items to the pawn shop.

If you're interested in pawning some of your valuable items, stop by Coins & Stuff today. Since 1980, the High Point pawnbroker has earned a reputation for quality service and competitive prices. They also operate as a coin dealer, buying and selling gold and silver coins. Learn more about all of their services by visiting their website or calling (336) 885-5323.