subject: Pawnbrokers Have Existed For Over 3000 Years [print this page] In modern times the pawnshop is a convenient alternative to loans from banks. Because property is collateral for the short-term loan, no credit check is required. A price is set along with a rate of interest to be paid on the loan. If the borrower defaults on the loan there is no strike against his credit score. The property that was used as collateral then covers the loan.
