Debunking Common Pawn Shop Misconceptions

When you need emergency cash loans but have no credit or bad credit, your options can be limited. One option is to get cash advance loans. The other option is to get pawn loans. Sadly, many people have misconceptions about pawn shops, so they never even consider this second option.

Let’s explore some of the more common pawn shop misconceptions and debunk them once and for all.

“Getting a pawn shop loan is more expensive than a cash advance loan.”

With cash advance loans, you are getting an advance on your paycheck. The interest on those loans can be very high. Essentially, you could go from one advance to another and never recover financially.

With a pawn shop loan, you use something of value to secure the cash you need. The pawn shop holds the item for a set period of time. During this time, you can make payments to pay off your loan. The interest on pawn shop loans is highly regulated by the state and, at GEM Pawnbrokers, we have the lowest interest in the state, at just 4% per month!

“Pawn shops deal in stolen and illegal merchandise.”

This is not true at all. All pawn shops are required by law to verify ownership of any items being used to obtain a cash loan. Pawn shops must also verify ownership of any items being sold for cash before they can buy it.

“Pawn shop loans are just for people with no credit or bad credit.”

While some people do feel this way, this is not true either. If you need cash quickly and don’t have time to wait for a bank to process a loan application, a pawn shop is a good choice to get the cash you need the same day—often in a matter of hours. Anyone, regardless of credit and income, can benefit from quick cash loans from pawn shops.

“Pawn shops make up prices they offer on jewelry, gemstones, and precious metals.”

At GEM Pawnbrokers, this is not true. We have GIA (Gemological Institute of America) and JA (Jewelers of America) certified appraisers. We also utilize the daily trading rates for specific precious metals and gemstones to determine the value of an item and the amount of cash you can borrow against it.

“Pawn shops set you up for failure with pawn loans.”

It is not in the pawn shop’s best interests to keep your items. They would rather help you pay off your pawn loan so you can use the items again if you have another cash emergency. They will even work with you if you are struggling to pay off your loan, by offering loan extensions to give you the time you need to pay it off.

“Pawn shops only sell junk.”

Most people who shop at a pawn shop for the first time are surprised by the wide range of items they sell. They discover electronics, musical instruments, video game systems, laptops, tablets, video games, digital music players, smartphones, designer handbags, designer athletic shoes, and other types of great items at affordable prices.

“Pawn shops can disappear overnight with your items.”

gem pawnbrokers shop

With GEM Pawnbrokers, this is not the case. We have been in business for over 70 years in the greater New York City Area, and we have 24 store locations in Manhattan, Brooklyn, the Bronx, Westchester, Queens, and Long Island.

As you can see, these misconceptions are not valid when you deal with GEM Pawnbrokers and other reputable pawnshops. Feel free to visit one of our NYC area pawn shops today for emergency cash loans or to find great bargains on popular items. You may also call us at 718-596-5626 for directions to the closest pawn shop near you.

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