While some borrow from pawnshops due to desperation, Caskey said many borrow because 'they are optimistic about their economic situation and are spending more than they are making at the moment.'.But Caskey noted, 'This was not a typical downturn due to the substantial increase in unemployment support and the stimulus checks.'.Pawnshops typically provide loans to the unbanked and those without credit or with bad credit.īetween the lines: As a general rule, bad times are not typically good for pawnshops or banks, Swarthmore College economist John Caskey said.These loans don't affect a customer's credit score. How it works: Pawnbrokers lend money on collateral, which is based on the value of an item.

Meanwhile, pawnbroker licenses in the city have fallen in recent years, from 40 in 2015 to 32 this year, according to city spokesperson Karen Guss. 'The pandemic, all said and done, increased business - it just came in differently,' said Myerson, who's also president of the state's Pawnbrokers Association.Yes, but: Inventory dropped as fewer people needed loans by pawning items, defaulted on loans or sold their belongings. State of play: Local and state pawnbrokers saw their sales and loan redemptions spike over the last year and a half, Stanton Myerson, owner of Lou's Jewelry & Pawn in Upper Darby, told Axios. The pandemic has been good for business at pawnshops in Philly and across the state.

Karen lynch pawn