Pawn shop myths

There are so many myths about pawn shops which are untrue for most pawn shops. If you choose a reputable pawn shop like ours then you shouldn’t have to worry about who you are dealing with. With over 70 years in pawnbroking, you can trust us, so let us dispel some of these myths.

1. Items are undervalued

This is probably one of the most common myths and objections to pawn shops. What you need to understand is that a pawn shop needs to make a profit by selling items and build in protections on their loans. What you paid for an item will be different to what is now worth and pawn shops are experts in valuing items. You won’t be offered the full second-hand retail value of the item either but it will be a competitive offer.

2. They try to keep your collateral items

Pawn shops won’t try to keep your items or weight the loan in their favor so that you fail to repay the loan. Reputable pawn shops want to help people and they rely on their reputation so treating customers unfairly would not be beneficial.

3. Only desperate people use them

There is a stigma that people who use pawn shops are desperate and have no other alternatives. The reality is that the loans offered by pawn shops are attractive as there are no credit checks, no impact on your credit history, and they are fast and flexible short-term loan.

4. Pawn loans are expensive

Pawn loans are short-term loans that are represented differently from other loans so it can be difficult to compare. In comparison to other short-term loans, pawn loans can offer a fair and competitive loan option, for example in comparison to payday loans.

5. They aren’t regulated

There is a misconception that pawn shops are unregulated but that is untrue. Pawn shops are required to have the appropriate licenses and they are regulated like other lenders for their loans.

6. They handle stolen goods knowingly

TV shows and movies can give a bad impression of pawn shops which is far from the truth. Reputable pawn shops do their best to avoid handling stolen goods and will work with the police to capture criminals and return goods to their owners.

7. They exploit poor people

Pawn shops don’t look to exploit people and will generally try to help people in accessing loans or cash when they need it and other options may not be available to them. Most pawn shops offer fair and simple terms. Reputation and repeat business are important to pawn shops so providing a good and fair service is important.

8. Collateral items can be lost

We have all probably heard a horror story about someone whose item got lost or damaged, but if you select a reputable pawn shop then your item will be safe as it will be securely stored for the duration of the loan.

9. No one wants pawn shop items

Many people envision discarded items that no one wants or are outdated but the reality for many pawn shops is that they offer a broad range of items that are actually desirable and you can often find unique items. Our stores are appealing with a great range of items to choose from.

10. Only small-value pawn loans are available

Although many loans are for smaller amounts, some pawn shops do offer larger loan amounts. For example, we offer loans up to $1,000,000 subject to sufficient collateral.