What is a Pawn Loan?

A pawn loan is a quick, convenient and confidential way to borrow money. “Pawn” is another term used to describe a collateral loan where a Pawnbroker will lend money on items of value ranging from gold and diamond jewelry, firearms, musical instruments, televisions, electronics, and tools. The loan is based on the value of the collateral, and Advantage Trading Post offers one of the lowest interest rates in the state at 10% per month. When a customer pays back the loan, their merchandise is returned to them. We offer monthly extensions/renewals  where if you pay your 10% interest each month you will not lose your item, so simply put, a short-term cash need can be met with no credit check or legal consequences if the loan is not repaid. A customer may also choose to surrender his or her collateral as payment in full.

How much does a pawn loan cost and how long can I leave my item in pawn?

Advantage Trading Post charges one of the lowest interest rates in the state of Utah at 10% per month. We offer a 30 day loan with a 30 day grace period so you can go up to 60 days initially without making a payment. As long as you make your monthly interest payment we will hold your merchandise for you until you can pay the loan in full. And if you decide to forfeit the loan, no problem, we consider your collateral as payment and place it in our inventory for sale.

Can I pay extra on my loan or do I have to pay the principle back all at once?

You can pay any extra amount you’d like towards the principle of your loan as long as your interest payments are current. Whenever you pay on your principle, this will bring your interest fee down, always keeping the interest at 10% per month.

How does Advantage Trading Post determine the value of an item?

Pawn shops base the value of the item on current appraised value, its current condition and the ability to sell the item. Advantage uses research and reference guides to determine an item’s value to get you the most money for the item. The appraisal process varies depending on the type of item—for example, jewelry is evaluated differently than electronics. All items that Advantage buys or offers loans on are tested to ensure that they work properly. Advantage does not give price quotes over the phone.

Are pawn shops regulated?

Yes, Pawnbrokers are governed by all of the major federal laws that apply to entities designed as financial institutions. The federal laws that regulate the pawn industry are Patriot Act, Truth in Lending Act, Equal Credit Opportunity Act, as well as Data Privacy and Safeguard of consumer information as part of the Federal Trade Commission (FTC) Rules. Pawn shops that deal in firearms are regulated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Pawn shops may also be Federal Firearms License holders. States have regulated the pawn industry for decades, and pawnbrokers are licensed and regulated by local authorities as well. Any item that is sold, pawned or traded to a pawn shop is entered into the Utah state Pawn Database within a 24 hour period. Any individual selling, pawning or trading any item must show state issued picture identification or a passport prior to any financial transaction.

How do I know the item I want to purchase isn’t stolen?

Less than one tenth of one percent of all pawned merchandise is identified as stolen goods. That’s because customers must provide positive identification and a complete description of the merchandise. This information is then regularly transmitted to law enforcement, which dramatically decreases the likelihood that a thief would bring stolen merchandise to a pawn store.

Can I pawn my gun?

Yes! Advantage Trading Post is a Federal Firearms licensed dealer and we loan on firearms. Please be aware that if you choose to use a firearm as collateral you must be able to pass a background check when you pick up your gun. The state of Utah charges $7.50 for the background check unless you are a concealed permit holder in which case the fee is waived.

Can someone else pick up my pawned item? What if I lose my pawn ticket?

No! Only you with your identification can pick up your item, even if someone else has your pawn ticket they can not redeem your item. The only way someone else can redeem your item (excluding firearms; any firearm must be redeemed by the individual who pawned it ) is if you have made arrangements with Advantage at the time the loan is written.