4 Tips For Using A Pawn Shop For A Loan

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4 Tips For Using A Pawn Shop For A Loan

6 January 2021
 Categories: , Blog

Are you considering using a pawn shop to pawn an item to get the cash that you need? If so, it will help to follow these tips when using a pawn shop.

Consider Using An Independent Pawn Shop

One thing to consider when selecting a pawn shop is to choose an independent pawn shop in your area, rather than one that is part of a bigger chain. You may find that the independently owned pawn shop is going to be more likely to negotiate with you when pawning an item. They do not need to follow guidelines from another office, and you may end up getting a better deal in the form of a higher dollar value for your item.

Know That Loans Are For A Fraction Of The Item's Value

When pawning an item that has a high dollar value, know that you will only get a small percentage of what the item is worth. This is because the pawn shop needs to protect themselves in case you leave the item behind and do not pay back the loan since the pawn shop needs to then hold onto the item until they can find a buyer. By giving you a small percentage of the item's value, they will be hedging their risk in case they are stuck with the item for a very long time.

Bring In Proof Of The Item's Value

If you have some sort of proof of what an item is worth when pawning it, you'll want to bring that proof in with you. For example, if you have a piece of jewelry that was appraised at a certain value, bring in the appraisal documents along with the jewelry. The pawn shop may do their own due diligence by researching the item, but any documentation you have will help sway their opinion on the valuation.

Remember To Repay Your Loan On Time

Part of the agreement for pawning an item is that you will return by a specific date to repay the loan and interest. If you do not do this, you will either pay a fee or potentially forfeit the item to the pawn shop. Returning to the pawn shop to repay the loan on time will ensure that you do not pay any more interest than what was agreed upon and do not risk losing your item and having someone else buy it from the pawn shop.

For more information, reach out to a local pawn shop like Wimpey's Pawn Shop