Pawn shops have received a lot of attention in recent years thanks to reality shows like the popular Pawn Stars, but they aren’t new. In fact, America’s 12,000 pawn shops have been around for more than 3,000 years. People visit pawnshops for three main reasons: to buy an item at a discount, sell an item, or get a loan on their merchandise. Read more ezpawn.com

Some pawnshops have gained a bad reputation due to customers who don’t pay back their loans, but most are reputable businesses that are willing to work with the customer to get their merchandise or money back. They usually only sell items that are valuable and have a high demand, such as jewelry or electronics. They will not sell stolen goods and keep detailed records of all transactions to help law enforcement find and reunite the items with their rightful owners.

Typically, pawnshops lend no more than 25% to 50% of the projected resale value on an item pledged as collateral for a short-term loan. They then charge a monthly interest rate to the borrower until the collateral is reclaimed by the individual or the loan plus interest is paid.

Pawn Electronics Easily: Turning Gadgets Into Quick Cash

Many pawnshops also supplement their income by selling merchandise they buy from the public or by offering auxiliary services for which they charge a fee, such as check cashing, cell phone activation, Western Union money transfers, and bill payment services. Some pawnshops even offer home improvement services and repair.