Provident Loan Society of New York Provides Information on How to Find an Honest Pawn Shop
Pawn shops are one of the easiest and fastest ways for people to get quick jewelry loans without affecting their credit, but consumers should be aware that interest rates and fees vary by pawn broker.
New York, New York, March 3, 2015 (Newswire.com) - Pawn shops are one of the easiest and fastest ways for people to get quick jewelry loans without affecting their credit, but consumers should be aware that interest rates and fees vary by pawn broker.
The not-for-profit, Provident Loan Society of New York, says borrowers need to ask specific questions to make sure they learn about the terms for any loan before they borrow money secured by their jewelry.
"Provident Loan specifically warns against high interest rates and undisclosed fees from many on-line loan companies."
Provident Loan Society of New York was established in 1894 as a not-for-profit organization to help struggling New Yorkers who needed financial help.
Today, it serves approximately 40,000 people every year in need of short-term loans some of whom have no credit history whatsoever.
The not-for-profit organization recently reviewed and compared rates and fees at pawnshops across Manhattan, Queens and the Bronx.
Their collateral loan analysis discovered most pawn brokers charge the highest annual interest rate allowed under NYC law (48 percent), while other lenders charge close to half that rate. Provident Loan Society of New York charges 26 percent for loans on jewelry.
In addition, Provident Loan Society of New York discovered in their collateral loan analysis that most pawnbrokers charge additional fees. New York City has laws that limit how much pawn shops can charge in fees, but consumers should still ask upfront for the rate and fees they will be paying in exchange for quick loans.
Provident Loan specifically warns against high interest rates and undisclosed fees from many on-line loan companies.
Provident Loan has a free guidebook to help consumers find honest lenders. (It can be downloaded for free here: http://www.providentloan.com/en/get-a-loan/). The guidebook outlines 7-questions all consumers should ask before they pawn jewelry for cash loans. They include:
"What is my monthly interest rate?"
"What are my total fees?"
"Can I borrow by the week or by the day? Will I have to pay by the month?"
"Will my rate increase over time?"
"Where will my valuables be stored? In a display case, safe or vault?"
"Will you take a look at my appraisal?"
"Will I get notifications for my payments?"
About Provident Loan Society of New York
Since Provident Loan is a not-for-profit organization, its interest rates for short-term loans are substantially lower than commercial pawnbrokers. It provides securitized loans by mail to anywhere in the United States. Famous financiers J.P. Morgan and Cornelius Vanderbilt founded it in 1894 after they discovered New Yorkers and businesses needed financial assistance and protection from dishonest pawnbrokers at that time.
You can apply for a short-term loan near you without any credit check at: http://www.providentloan.com/en/locations/