The cost of pawn loans demystified
It´s natural to want to know how much money a pawn loan costs in San Diego. After all, you are not just looking for cash now. You also want to get a good deal at the time you retrieve your item.
Here´s what you need to know:
The cost of a loan consists of several elements. Consider all of them. There is:
Principle: This is the amount of the loan. It is based on the pawn shop’s evaluation of your item.
To learn how pawn shops come to this amount, click here.
Interest. The interest rate of pawn loans varies by State. This is the rate charged to the borrower (you, in this case) for borrowing funds. It is a percentage of the principal.
In California, interest rate fees are generally 3% per month.
For example: You bring in a camera to a pawn shop in San Diego. Said pawn shop in San Diego offers you a $100 loan, for a $3% monthly interest rate. You’ll pay interests of $3 per month.
The term of the loan. Here´s the important part. Most pawn shops in San Diego offer 6-month loan terms. Pawn shops only allow for an item’s retrieval after the end of the term, as stated in your contract.
Flexible loan terms such as CashCo’s work to your advantage.
A shorter loan period, means less time paying interest.
A longer loan period means more time to pay. You are in control.
Besides interest, pawn shops could charge:
- Late charge (easily avoidable by -you guessed it… paying on time)
- Storage and writing fees may apply. Some loans carry $0 fees. These fees are established by State Law.
- Notification charge. Not all pawn shops charge for this.
None of these fees or charges should be “hidden fees”. They should be clearly stated in your contract and explained by the pawn loan agent.
At the end of the day, pawn loans are a very affordable option.
CashCo offers flexible loan terms and gives you much more money than anyone else in San Diego. Come check us out!