Pawnbrokers can offer loans, merchandise

From: Telegraph - Herald (Dubuque) | Date: September 16, 2007| Author: The Associated Press | Copyright information

Question: How does a pawnbroker's business work?

Answer: Pawnbrokers lend money on items of value ranging from gold and diamond jewelry to musical instruments, TVs, tools, household items, etc. Because the customer is providing collateral, there is no need to do a credit check.

A typical loan is small, averaging $75 to $100. The interest rate charged by a pawnbroker is controlled by the state and varies across the nation. The pawnbroker also is required to hold the merchandise fo...

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