Tips in Dealing with a Pawn Shop

Whenever we ran out of cash, who should we go to? Family? Friends? Colleagues? What if they don’t have some money to lend us yet we badly need to pay our dues? The solution: go to the nearest pawn shop. Pawning is one way of getting extra money through loans or selling an item. Pawn stores allow us to sell items outright or temporarily entrust our items in their store in exchange of cash loans, which should be paid in full with interest for a specific period. They are also a good place to purchase second hand goods at a cheaper price. This article lists down various ways on how we can make transactions with these shops in order to get fast cash, temporary loans and bargain purchases in no time.

Pawn Shop1. Look for valuable items in our home. Before going to pawn stores to get some cash, we need to gather valuable stuff in our house. When we say valuable, these items must be in good condition. Make sure that we only bring the ones that are useful because pawn stores won’t accept the ones with no value at all. Examples of valuable items found in our homes include: set of jewelleries, gadgets, appliances and others. In selecting the valuable ones from all the items, make sure to make them more appealing. Perhaps, we can remove some dusts off the surface of a gadget or do some polishing on jewelleries.

2. Choose between selling and pawning those items. One good thing about pawn stores is that we have the option to loan some cash or earn money from selling our items. When we opt for pawning, we need to leave the item in their store for a specific period (normally about 90 to 120 days) in exchange of a short-term loan. In order for us to get the item back, we need to pay the loan in full plus its interest rate until we finish the terms given by the shop. If we fail to do so, that item automatically becomes a property of the shop owner and he will have the right to sell that item to others.

3. Research our items. Before selling or pawning an item, it’s essential for us to know its actual value because pawn shop owners tend to cut down the price of the item at the lowest possible. We don’t want to get some cash that is not based on the appraisal value of the item. To make sure that we won’t get fooled, seek the help of a professional jeweller for the appraisal of our items. However, after examining or evaluating the item, don’t expect that we get its full appraisal value. Normally, we only get somewhere around 40 to 60 percent of the estimated value.

If we’re not satisfied with the appraisal value they give, we can opt to sell our items to online shops instead. We can get higher quote if we sell our items to bidding sites such as eBay but it has one disadvantage – we will not get the money right after selling an item as it may take a few days to process the payment.

4. Compare and look for a pawn shop that offers the best possible price. It’s always essential to do some research first before going for the nearest pawn store in our area. This is because some shops are more understanding when it comes to their customers than the others. It will also prevent us from falling into the trap of fly-by-night shops that are only after with our hard earned items.

Reading customer reviews and feedbacks online is a good way to look for the best shop around the neighbourhood. We can visit sites like to know more about the services they can offer.

5. Ask the shop proprietor for the details. We have the right to ask questions because our valuable items are on the line. Don’t hesitate to ask about the item’s interest rate per month, additional fees, guaranteed insurance in case of loss, notifications or reminders for the due date and so on.

6. Stay away from shops that have grey areas when it comes to business practices. If a pawn shop provides questionable terms, unfair interest rates and unreasonably low appraisal values, that’s the best time to look for the next shop within the area. As customers, we have the right to reject their offer and find more trustworthy ones.