You have decided that you need cash and you need it fast. If this is the case, then taking a valuable item and heading over to a pawn shop will be a good idea. Before you do that, there are a couple of things we would like to go over …
It’s a Short Term Loan
First of all, this is a short term loan. It is important that you understand this. If you plan on pawning the item, then you need to pay the money back, along with the interest rate and fees in order to get the item back. If you fail to make payment, then the pawnbroker will have the rights to it and you will no longer be the owner.
What Should You Pawn
Now, you need to figure out what to pawn. First off, don’t go in blind. Know exactly how much you need. You will save yourself money in the long run pawning one item worth more, than pawning several items that are worth smaller amounts, thanks to ticket fees.
Each individual pawn ticket costs a ticket setup fee that you pay when you pick your item up (usually around $5). Minimize how many items you are pawning, and you save yourself $5 per item (most pawnshops will only do one item per ticket in order to maximize their money).
Know what you expect to get. For most items, you will receive about 10% of what you paid for it. If you are unsure, do a search on eBay for sold items like yours. Then figure on getting about one third of that. A sold listing search on eBay is the standard most pawn shops use for their pricing. It tells us what people are will to pay for an item used.
Even if what you bring in has never been taken out of the box, a pawn shop still has to consider it as used. Do your research on your local pawn shops. A chain store may be able to offer you more money, but their interest rates are usually higher.
Give the stores a quick call to see who has the lowest interest rates. You wouldn’t sign up for a bank account or credit card with abnormally high fees, would you? Why should a pawn shop be any different? Locally owned pawn shops usually have lower interest, and better customer service. Plus, you have the peace of mind knowing that the money stays local.
Only go for what you feel you could pay back within the amount of time they give you to pay the loan back. We understand that that extra bit sounds enticing, but realize you’ll end up paying it several times over if you take it.
Once you agree on your offer with a pawn shop, get your money; take it directly to whatever it is intended to pay for. Do not waste time. The longer it stays in your wallet, the more tempting it is to spend on something else.
Spend it on what is needed, and work on saving your money to get your item back. To get a better idea of how pawn shops operate, we encourage you to take a look at Cash4jewelrynow.com.
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