The price of silver and other scrap metals has increased over the past 15 years. People are often surprised to learn the value of their silver tea set, candlesticks or silver jewelry. When they need a loan to pay for an unexpected car repair bill or utility bill, they decide to use a Silver Pawn Shop. The potential size of a pawn loan is determined by the value of the item. While the interest rate on a pawn loan is higher than that of a bank loan, it is often lower than the late fee that the utility company charges. Banks won’t lend money to people with bad credit and they don’t take collateral such as a tea set. The pawn shop is often the person’s last hope for cash.
When a person walks into the Silver Pawn Shop, they are treated with courtesy and respect. The employee at the counter understands how stressful it is to pawn a treasured family heirloom or to need money desperately. He immediately appraises the silver items based on the quality and weight of the silver and the current scrap metal price for silver. Scrap metal prices change each day. The pawn value of the item is a percentage of the estimated price. If the person defaults on his pawn loan, the pawn shop has to be able to make a profit. There are no governmental regulations that determine the percentage. People who think they deserve a higher percentage can check out a second pawn shop.
Once the person has agreed to the amount of the loan, the pawn shop draws up a simple agreement. It contains the item, the person’s name, the amount of the pawn loan, the interest rate and any fees. Pawn loans usually run for 30 days. If the person has the money within that time, he brings the pawn ticket and buys back the item. If he doesn’t have the money or want the item, the pawn shop takes the item and sells it. It doesn’t affect the person’s credit score and there are no debt collectors calling. Arizona EZ-Pawn is one of the pawn shops that accepts silver as collateral. People can call them to learn more about pawning an item
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