They also make loans for other reasons. A source of credit for people who are high risk in terms of their credit rating. They usually charge higher interest rates than banks, savings and loans associations and credit unions. Pawnbrokers To get cash, you must leave an item of value at the pawnshop and you usually receive half its resale value. If you do not pay by the date agreed upon, the item you left will be sold.
Pawnshops charge high interest rates.
Installment Plans Used to buy things that cost a lot such as a washing machine or a range. You make a down payment and then pay the balance plus interest on a weekly or monthly basis. If you fail to make a payment the store can repossess the item. You buy the merchandise and the store sends you a bill. If you do not pay the bill in full, an interest charge is added to the next bill.