PAWN F.A.Q.

IMPORTANT — PLEASE READ!
Pending federal legislation (Bill S. 500) could literally force pawnshops across the country out of business, destroying many citizens only source for short term loans. Feedback from concerned citizens could go a long way in stopping this legislation. Please visit PAWN SHOPS TODAY.COM for full details.


For general site/store questions, visit the GENERAL F.A.Q PAGE.

We cannot give quotes on pawn loans over the phone - you'll need to bring your merchandise in and let us appraise the value. However, below are answers to some common questions concerning pawn loans that should give some more information. And feel free to contact us at 309.823.9115 if you have further questions.


• What is a pawnshop?
• Why would a person use a pawnshop for a loan?
• How does a pawn loan work?
• What are the requirements to obtain a pawn loan?
• What are the charges/interest on a pawn loan?
• What is an extension?
• What is a renewal?
• How many pawning customers lose their merchandise?
• How do you determine the worth of my collateral?
• How do you determine the condition of an item?
• How do you determine the value of jewelry?
• How do you determine the price of gold or other precious metals?
• Can you give me a quote on an item over the phone?
• Where is my collateral kept while in pawn? Is it safe?
• Are pawnshops regulated?
• How much stuff in a pawnshop is stolen?
• Can I buy/sell/pawn a gun?



What is a pawnshop? BACK TO TOP
A pawnshop is basically a retail store that is authorized to give you small, fast loans using your merchandise as collateral. You also have the option of selling your used merchandise outright for cash or store credit, or trading it for other merchandise in the store. Monster Pawn is a fully-licensed pawnshop, as well as a Buy-Sell-Trade store.

Pawnbroking is not a new business — history shows that pawn lending has roots going back nearly 3000 years. In the late 15th century, as the story goes, Queen Isabella of Spain pawned the crown jewels to finance Columbus' voyage to America. Though it has changed in practice over the years, the idea is still the same: a pawnshop will either buy or loan you money for your valuable items.

Why would a person use a pawnshop for a loan? BACK TO TOP
Pawnshops offer the consumer a quick, convenient, and confidential way to borrow money. There is no credit history check before we give you a loan — your merchandise alone determines your credit. A customer receives a percentage of the value the pawnbroker believes the collateral would bring if sold. Although the loan to collateral ratio varies over time and across pawnshops, a loan of about 50 percent of the resale value of the collateral is typical. In other words, pawnbrokers feel their loan is "paid in full" at the time it is made.

How does a pawn loan work? BACK TO TOP
Loans are based on the value of your collateral, not your credit rating or pay schedule. Typically, loans are small — the average pawn loan nationally is around $80.00 — but can reach as high as a thousand dollars or more depending on the value of the collateral. Subject to Illinois law, a typical pawn loan has a term length of 30 days/one month, plus a 30-day/one month grace period. If you cannot pay back your loan in full, including any applicable grace period, we offer extensions/renewals (see below) to give you extra time. You may also choose to surrender your collateral as payment in full.

What are the requirements to obtain a pawn loan? BACK TO TOP
You must be 18 years of age or older and possess a valid photo ID. That's it. Simply bring us an item of value and we’ll get you cash on the spot after your loan is approved.

What are the charges/interest on a pawn loan? BACK TO TOP
Pawnshop interest rates and other charges, such as storage or insurance fees, are regulated by the state. Illinois limits the total percentage charged to no more than 20%, including finance charges and storage fees, per month.

What is an extension? BACK TO TOP
If you are unable to pay back your loan in full on its due date, you may be able to get an extension on your loan. With an extension, you will be required to pay a portion of the interest owed, then you may extend the length of your loan for as many days as needed.

What is a renewal? BACK TO TOP
If you are unable to pay back your loan in full on its due date, you may get a renewal as permitted by Illinois law. With a renewal, you pay the interest that has accrued on your loan in full, and a new loan is written. The principal loan amount remains the same, as does the interest rate, but the due date is reset for the full loan term.

How many pawning customers lose their merchandise? BACK TO TOP
The vast majority of our customers repay their pawn loans and pick up their merchandise. The national average shows 70 to 80 percent of all pawn loans are repaid — our average at MONSTER PAWN is more like 85 to 90 percent. If a customer chooses not to repay the loan, the merchandise/collateral for the loan is forfeited.

How do you determine the worth of my collateral? BACK TO TOP
We base pawn loan amounts on the value of your item — its current appraised value, its current condition and our ability to sell the item. We use all the research tools we have at our disposal to determine an item’s value and get you the most money we can. The appraisal process varies depending on the type of item. For example, jewelry is evaluated differently than a DVD player which is evaluated differently than a table saw, etc. In addition, items such as gold, coins, and jewelry maintain their value over a reasonable period of time, while items like computers and electronics depreciate much quicker, all of which is taken into account.

How do you determine the condition of an item? BACK TO TOP
The condition of an item is always taken into account during the appraisal process. For example, if two televisions come in and one looks nearly unused and the other has a crack in the side, we will loan more on the TV that’s in better condition. When it’s general merchandise you want to pawn, we test each item to ensure it is in good working condition. This includes, but is not limited to, a visual inspection, plugging an item in and turning it on, and noting if any necessary accessories (such as remote controls) and manuals are included. The better the condition of your item, the more money we can loan you. This is true for any collateral.

How do you determine the value of jewelry? BACK TO TOP
When jewelry is the collateral we test the precious metals and diamonds to determine its worth. We have a GIA trained diamond grader on staff as well as numerous other employees who have been working with jewelry for many years and are quite knowledgeable. The diamond testing includes a visual inspection using a jeweler’s loupe, weighing the item, sizing (determining carat weight) any stones, and noting the cut/color/clarity of each. Current market values of precious metals will also affect the value.

How do you determine the price of gold or other precious metals? BACK TO TOP
The price of gold, silver, platinum and other precious metals is based on market values, the price for which is reviewed and updated daily. Prices can vary greatly as the loan amount for 24K gold, for example, is significantly higher than that of 14K gold.

Can you give me a quote on an item over the phone? BACK TO TOP
Unfortunately, we cannot give quotes over the phone because loan amounts vary greatly depending on the condition of an item. For general merchandise, we test each item to ensure it is in good working condition. The better the condition of your item, the more money we can loan. And for jewelry, we test to ensure diamonds and gold are genuine.

Where is my collateral kept while in pawn? Is it safe? BACK TO TOP
While your item is in pawn, you still own it. When you give us an item for pawn, we keep your merchandise — along with all accessories (remotes, cables, etc.) — in a secure area accessible to authorized employees only where it is safely stored until you come back to pay your loan in full and claim your merchandise. In addition, we are fully insured for the loan value of the collateral we keep.

Are pawnshops regulated? BACK TO TOP
Yes. States have regulated the pawn industry for decades, and Illinois pawnbrokers are licensed and regulated by local authorities as well. We are subject to such laws as Truth In Lending Act, Equal Credit Opportunity Act, Fair Credit Reporting Act, Patriot Act, and Federal Trade Commission Rules on Data Privacy and Security Transfer. At the federal level, we are regulated by the Federal Trade Commission (FTC), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Treasury Department.

How much stuff in a pawnshop is stolen? BACK TO TOP
Contrary to popular belief, pawnshops are actually the worst place to try and get rid of stolen merchandise. In fact, less than 1 percent of items are identified as stolen goods, and most of those are identified and reported to the authorities before being offered to the public in any way. In addition, while being highly regulated (see previous question), we also work very closely with local and federal law enforcement officials. Our staff is trained to be on the lookout for and identify stolen property.

Can I buy/sell/pawn a gun? BACK TO TOP
No. While pawnshops can be registered to buy and sell guns, MONSTER PAWN does not deal in firearms. We do buy/sell/pawn BB guns, pellet guns, paintball guns and AirSoft equipment.