Dear reader, we have decided to compile the most frequently asked questions people tend to have concerning pawnbroking loans, present you with a few scenarios and comparative examples for better understanding how things work.
Firstly, let’s start with the basic.
What is pawnbroking?
It’s a way of getting cash instantly using your valuable goods such as your jewellery, gold or watch as a security for a period of 6 months without going through credit check nor face any legal liabilities if the loan is not repaid. However, we have various ways to help you in getting your items back if the latter means a lot to you. Interest rate is basically the commission added over the proposed loan from your pawnbroker which is only payable at the time your agreement is settled.
What are my choices?
Going along with this option means you are ready to sacrifice your item for some quick cash knowing that you’ll probably never get it back. Depending on what you possess and how urgent your situation is, selling could be the quickest method unlike, for example, displaying your item on a listings website.
The three main characteristics of pawning are ownership of your item, risk-free transaction and instant access to cash money. Instead of selling your most precious jewellery, you have the chance to come back for them at any time. An expert assessor will discuss with you on how much you would like to borrow and give you an evaluation on the spot. When you’re happy with the quote, an agreement is set up on the spot and you’ll receive your cash instantly. You will have the option of re-paying back up to 6 months or redeem your items during or at the end of this 6 month period. You can also make partial payments; make installments towards your lump sum or even renew your loan for another six month period.
For more insight on selling vs pawning, please read this article.
What can I sell and pawn? Pawnshops accept a variety of items ranging from jewellery to electronics. No matter where you choose to go, the most important factor you need to consider about your item is how decent its condition is for resale. With Fastcredit UK for instance, we buy and lend all kinds of jewellery from gold, silver and platinum regardless of its condition.
How is my jewellery valued? Determining how much your item is worth is known as valuation. It will be based on the condition, purity and weight of your items. Expert assessors have hands-on experience and can guide you in the entire process.
What to do if I want my item back? You can redeem your items at any time by repaying the outstanding balance initially stated under the agreement.
If I’m unable to redeem my item 6 months from now, what can I do? You need to ask your Pawnbroker if they can offer you an extension. With Fastcredit UK for example, you can renew your contract for another 6 months. Simply pay us your outstanding interest and we will issue you a new contract valid for another 6 months. However, if you are still unable to pay at least the interest, please speak to a member of our staff for more information.
How much interest is usually added over a loan? In general, most pawnbrokers in London will offer a monthly daily interest over your loan. This mean if you pawn an item and get some side-money a week later to retrieve it back, you will still pay one month worth of interest on whatever amount was loan to you upon your agreement. This is where Fastcredit UK prevails since we are the only one offering a daily interest.
For further details, do not hesitate to visit our FAQ section at the bottom of the page for more answers to questions you might have concerning this subject.