Pawn Loans Explained
A pawn loan is a quick, secure, confidential, and easy way to obtain the cash that you require! All you need is valid state-issued identification such as your driver license and your personal property to use as collateral.
We don't perform credit checks. Unlike payday loans, if you obtain a loan on your merchandise from us, your credit report is not affected. While our pawnshop is regulated by the Office of Consumer Credit just like other small loan companies, your credit report will not be impacted even if you decide not to reclaim your items. You may have as many outstanding loans as you like without the fear of credit agencies.
Pawn loans are based on collateral merchandise (jewelry, watches, scrap gold, designer handbags, electronics, etc.) used to guarantee the loan. This is an easy way to secure cash for life’s unexpected emergencies.
Your collateral is evaluated based on the age, condition and market demand to determine the loan value. Jewelry is tested for metal content and diamonds are examined to determine clarity and color.
When the loan amount is agreed upon, we create a computer-generated contract listing the collateral in detail, the loan amount, maturity date and interest. You receive cash immediately.
How A Pawn Loan Works
A pawn loan is usually for 1 month plus a 30 day grace period.
For example, if you receive a $100 loan on July 15, that loan is due on August 15 and has a 30 day grace period until September 14. If you make the 2 interest payments by September 14, you're good to go. If not, at our option, the property becomes our property.
You may redeem the loan by picking up the property that you used as collateral at any time during the loan and/or grace periods by paying the amount borrowed plus accrued interest in cash.
Until you are able to repay the loan, you may keep the loan active by stopping in and paying the interest due in cash.
Minimum & Maximum Periods for Repayment of Loan
The minimum period for repayment of a loan is the same day.
A maximum period for repayment typically does not exist. As long as you pay the interest due on a monthly basis on time, a loan may continue for months and even years.
Maximum Annual Percentage Rates & Pawn Service Charge
The Texas Legislature determines the below maximum annual percentage rates and pawn service charge that we may charge - not us.
$1,340.01 - $ 2,010.00 APR 30% and monthly equals 2.5%.
$2,010.01 - $16,750.00 APR 12% and monthly equals 1.0%.
If a loan is paid in full prior to the interest due equaling $15, we may charge a maximum pawn service charge of $15. However, if the interest due is greater than $15, then you must pay only the interest due - that is, the pawn service charge is $0.
Amount of Loan $1,500 $1,500 $1,500 $1,500
APR/Monthly Interest Rate 30%/2.5% 30%/2.5% 30%/2.5% 30%/2.5%
Date of Loan 9-10-2016 9-10-2016 9-10-2016 9-10-2016
Due Date 10-10-2016 10-10-2016 10-10-2016 10-10-2016
Due Date + 30 Days Grace 11-09-2016 11-09-2016 11-09-2016 11-09-2016
Daily Interest $1.25 $1.25 $1.25 $1.25
Date Paid/Renewed 9-15-2016 10-10-2016 11-09-2016 Not Paid by 11-09-2016
Total Daily Interest $6.25 $37.50 $75 not applicable
Pawn Service Charge $15 $0 $0 not applicable
Interest Paid $0 $37.50 $75 not applicable
Total Customer Pays $15 $37.50 $75 $0 - Property is ours.
All jewelry loans are placed in tamper-proof bags signed by the customer. These bags are placed in our state-of-the-art safe for storage and all other items are placed in our vaults. We are fully insured.
We do not discuss your loan with family members or friends as all loans are confidential. It is impossible to estimate the loan value of your property over the phone; we must evaluate it in person.
Note: Specific loan terms, conditions and repayment options will be discussed with you and provided in writing with a receipt detailing your property.
Wright Pawn & Jewelry is located in Houston on Westheimer Road near the Galleria. For more information, check out our Frequently Asked Questions.