Pawn shops are not the places portrayed on television that are dimly lit and crawling with illegal activity. They are strictly regulated by at least 14 federally passed statutes, and they are governed by laws at the state and local levels. Additionally, many pawn shops are run as family business with honest and trustworthy people who take pride in the work that they do. Studies have found that 34% of millennials have used them as a way to get access to cash without having to manage credit card debt.
Study of millenials and pawn shop loan use
The millennials taking out pawn shop loans include those who are college educated and those who are not. This study is interesting and has fueled the curiosity of researchers who are looking to the underpinnings of this surge in pawn shop loan activity. It appears that many millennials do not yet have the job history or credentials needed to secure credit cards. Also, millennials can quickly secure pawn loans Long Island, whereas getting a loan from a bank takes longer to apply for and be approved for. Some millennials have even used pawn shop loans for financing upgrades to their businesses.
The price of a pawn shop loan
Statistics from the National Pawnbrokers Association have shown that pawn shop loans are $150 on average, and the terms vary from state to state. Those looking for pawn loans Long Island will find that the rates are capped there at just 4% interest. Additionally, those desirous of finding pawn loans Long Island can be charged no more than a $10 fee in addition to the rate of interest. The loans will be based on putting something up as collateral, but there are generally not a lot of questions asked in regards to the applicants’ finances. You receive your cash immediately and will receive your item back once the balance has been paid.