Loans Information

Pawn Loans Vs. Payday Loans

Today’s consumer has many options to consider when looking for a short term loan to fill an immediate financial need. Pawn loans, Title loans, and Payday loans are some of the more common choices. Of these three choices, Pawn loans are the most affordable, and easiest loans to qualify for.

They are low cost, no recourse loans, meaning that, if you cant pay back the loan, you and your credit will not be attacked.

What is a Pawn Shop and how do Pawn Loans work?

Pawn Shops are businesses that specialize in short term, collateralized (or merchandise based), loans for people in need. This is how simple it can be:

Bring an item you own into AJ’s Super Pawn to use for collateral for the loan. This is called “Pawning”.

We will loan you money against that piece of collateral. Examples of collateral we accept for Pawn Loans are: gold and diamond jewelry, electronics, computers, tools, musical instruments, and the list goes on. We loan on “almost anything of value”.

You will receive CASH for your loan, and a contract giving you FIVE MONTHS to repay the loan and charges.

When you pay back the loan, you get your items back. It’s just that Easy.

If you decide you no longer want the items you brought in, you simply don’t have to return for them, and the Pawn Shop keeps the items when the loan expires and forecloses. ALL Pawn Loans written in California are NON—RECOURSE loans, which means that if you don’t repay the loan, for ANY reason, there are no collections or marks against your credit. The loan is secured by the item you brought in.

All Loan Interest Rates and Fees are set by, and regulated by, the State of California. No Pawn Shop can charge you MORE than the State Mandated Rates.

LETS COMPARE RATES

AJ'S SUPER PAWN LOANS

LOAN TERM: 5 Months
Interest: Interest Rates vary by Loan amount, but as LOW as 36% APR plus applicable fees!
Pay ZERO Interest for the first month of your loan!! *
Pawn loans are a SIGNIFICANTLY better (and affordable) option than Payday Loans in MANY regards. The length of our Term, 5 Months, which gives a customer plenty of time to rebudget and overcome financial hardship and emergencies. Lower APR Rates mean that it doesn’t cost you more than the amount you borrowed to repay the loan. Once you pay your loan back, and get your item back, then you have the comfort and knowledge that, if you ever find yourself between a rock and a hard place again, you can simply come back in and get another pawn loan your item!

PAYDAY LOANS

LOAN TERM: 2 Weeks to pay in full (with options to rollover)
Interest: $15—$30 per $100 Borrowed, every TWO WEEKS.
Average Annual APR: 390-780%
Payday loans range in size from $100 to $1,000, depending on state legal maximums. The average loan term is about two weeks. Loans typically cost 400% annual interest (APR) or more. The finance charge ranges from $15 to $30 to borrow $100. For two-week loans, these finance charges result in interest rates from 390 to 780% APR. Shorter term loans have even higher APRs. Because of the short term, high cost payback model, a LOT of payday Loan customers get caught in a “Cycle of Debt”, and are forced to “rollover” their payday loan every 2 weeks to keep from defaulting on the loan. A lot of customers seek “payday” loans to cover emergencies, because they don’t realize that other options exist, and quickly realize that 2 weeks isn’t enough time to recover from a financial emergency, and end up paying to “rollover’ their loan MANY times, costing, in a lot of cases TWO or THREE times the amount they actually borrowed.