Pawnshop Facts
Here are some interesting things you may not have known about
pawnshops and their function in society:
Pawnshops are the oldest type of lending institution in existence:
In the west, pawnbrokers existed in the Ancient Greek and Roman Empires. In the East, the business model existed in China 3000 years ago, no different than today. Queen Isabella of Spain pawned her jewelry in order to send Christopher Columbus to America:
Yep! If pawnshops hadn't existed in Spain during the time of Christopher Columbus, there's a good chance America (as you know it today) wouldn't exist. Funny, then, that the American government is now trying to put this institution out of business. Pawnshops were the only lending institutions offering loans during the Great Depression:
During the Great Depression, with many banks out of business and others too afraid to lend money (sounds familiar, doesn't it?), pawnshops were the only place people could turn for the cash they needed. If you don't pay back your pawnshop loan, your credit score is not affected:
When you get a loan and don't pay it back, most lending institutions will report you to the credit bureaus. This can make it difficult to buy/lease a car, buy/rent a place to live, get a cellphone, etc. But because pawn loans are "non-recourse", pawnshops cannot come after you for repayment or report you to a credit bureau if you don't pay back your loan. Pawnshops are one of the only lending institutions that will loan money to people with no credit or bad credit:
Pawnshops do not check your credit when giving you a loan, so your credit situation doesn't matter. Very few other lending institutions will loan money to people with low credit scores. Want to learn more about pawnshops? Follow these links (but not until after you sign the petition):
In the west, pawnbrokers existed in the Ancient Greek and Roman Empires. In the East, the business model existed in China 3000 years ago, no different than today. Queen Isabella of Spain pawned her jewelry in order to send Christopher Columbus to America:
Yep! If pawnshops hadn't existed in Spain during the time of Christopher Columbus, there's a good chance America (as you know it today) wouldn't exist. Funny, then, that the American government is now trying to put this institution out of business. Pawnshops were the only lending institutions offering loans during the Great Depression:
During the Great Depression, with many banks out of business and others too afraid to lend money (sounds familiar, doesn't it?), pawnshops were the only place people could turn for the cash they needed. If you don't pay back your pawnshop loan, your credit score is not affected:
When you get a loan and don't pay it back, most lending institutions will report you to the credit bureaus. This can make it difficult to buy/lease a car, buy/rent a place to live, get a cellphone, etc. But because pawn loans are "non-recourse", pawnshops cannot come after you for repayment or report you to a credit bureau if you don't pay back your loan. Pawnshops are one of the only lending institutions that will loan money to people with no credit or bad credit:
Pawnshops do not check your credit when giving you a loan, so your credit situation doesn't matter. Very few other lending institutions will loan money to people with low credit scores. Want to learn more about pawnshops? Follow these links (but not until after you sign the petition):
