From time to time, consumers in the Cocoa area need a bit of extra cash to solve cash flow problems. For example, a bill such as rent may be due prior to the employer’s payday. Those who have good credit have some options for getting extra cash. Those who do not have good credit will not have many options from traditional financial institutions. Since the financial crisis, many lenders have become reluctant to approve credit applications from those with significant credit problems. Fortunately, there is another option for Loans in Cocoa FL.
Pawn shops give loans to consumers without regards to credit. The cash is given immediately after the collateral is given to the pawn shop. The only thing that pawn shops care about is the value of the collateral. A typical pawn shop will give a cash loan to a borrower for a portion of the collateral’s value. Gold and jewelry prices have risen significantly over the past few years. That means it is possible to borrow a substantial amount of money with gold jewelry as collateral. Some items lose a lot of value over a short period of time. For example, many electronic items that cost thousands of dollars a few years ago such as a high-end laptop computer may be obsolete within three or four years. Trying to pawn a three year old computer may not result in much money.
It is helpful to understand why it is not possible to borrow against the full value of the collateral. First of all, the pawn shop will have typical overhead expenses that are common with brick and mortar stores. Rent has to be paid. Payroll has to be met. In addition, pawned items have to be stored securely. With a pawn shop loan, the borrower has the right to redeem the collateral for the period of time stated in the pawn shop ticket. The store cannot sell items that are being pawned until the borrower’s right to redeem the item has expired. That is the same reason why selling items outright to the pawn shop will result in more money. The shop can sell the item immediately. That is why borrowers should not expect to borrow the full value of the collateral.
