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Inaccurate information floating around has led some individuals to make false assumptions about pawn shops. Because people aren’t familiar with the lending and dealing methods, they might be inclined to use other avenues to secure loans or purchase goods. To make you feel more comfortable using pawning services, here is the truth behind some common misconceptions.

Uncovering the Truth Behind 3 Pawn Shop Myths

1. Merchandise Is Stolen

pawn-shopBecause goods are sourced from various individuals, some people think pawn shop owners don’t practice due diligence in ensuring merchandise isn’t stolen. This is false, as shop owners keep detailed records on each item and seller and provide copies of the documents to local authorities. Before shops put the items up for sale, there is a waiting period to see if the goods match descriptions of belongings reported stolen.

2. Loans Include Steep Interest Rates

There is the misconception that pawn shops use tactics to make it difficult or impossible to pay back loans. Some people believe the lenders charge steep interest rates to ensure borrowers default and can’t get back their collateral. This is not the case, as there are strict rules in place set by the state or city regarding interest rate percentages.

3. Monthly Payments Are Part of the Terms

Another common assumption, that is not always the case, is that all credit terms include monthly payments. In some instances, borrowers have until the end of the pawn loan timeline, be it a couple of months or longer, to pay it back. If the fees and interest rates are paid, there could also be the option to extend the arrangement.

 

If you are looking for high-quality merchandise at affordable rates or want to secure a collateral-based loan, visit Platinum Pawn Tampa in Tampa, FL. The honest, trustworthy pawnbrokers are dedicated to providing clients throughout Hillsborough County with agreeable terms to secure finances. To find out what types of items the pawn shop will purchase, call (813) 443-4622. Visit the company online for special offers and become a Facebook follower for new inventory alerts.

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