For years, the pawn shop has been represented as a last resort for desperate people looking for quick cash. The reality is much different. Pawn brokers are licensed on national, state, and local levels and offer financial security to those unable to secure a loan through a bank or other lending company. Pawning an item through a licensed broker often requires no credit check and is fast and secure. The recent economic downturn has led many people to ask the question of how to pawn an item.
The question of how to pawn something is less important than what should you pawn. When you pawn items, they are usually held by the pawn shop until the amount of the loan is repaid. If you do not repay the full amount of the loan in the agreed-upon time, the item is forfeited and becomes the property of the shop, which will then resell the item to recoup its losses. You should keep a few things in mind when you plan on pawning your items.
There are pawn brokers that will buy items outright, but most are in the business to offer collateral-based loans. They plan on you repaying the amount of the loan with interest and returning to recover your property, so they do not loan you the full value of your item. The national average of collateral-based loans for a single item is $150, but pawn loans can be made for any amount.
Pawn shops are designed to help you keep the item you love, while using it to get extra cash. If your item is something you feel you can do without, selling it outright will give you the best value.
While pawn brokers are willing to work with their clients, there is always the possibility that you may be unable to recover your property. Make sure that the item you choose to pawn is something you can bear to part with permanently. The PlayStation your sister bought for your birthday may be a better pawn item than your great-grandmother’s wedding ring.
Now, you’ve thought it through, considered the pros and cons, and decided that you really want to know how to pawn something. The process of pawning items is easy.
Pawn shops do not make loans for the full price of the item and often will only accept things they can determine a set market value for. Pawn items may be priceless heirlooms for you but may have little to no real monetary value. Small items, like jewelry and watches that contain precious metals are readily accepted. Televisions, collectible coins, and firearms are also often accepted.
Pawn shops can be found everywhere. Many towns have more than one shop, and large cities can have dozens. Many pawn shops advertise online and maintain their own websites. Some pawn shops specialize in specific items, such as musical instruments or machinery, so do a little research.
The first price the broker offers may not be the most they are willing to pay. Some pawn shops may have a no-haggle policy, but you might be surprised at how much more you can get out of your item simply by asking.
All pawn shops are not created equal. The price a pawn shop offers for items can vary based on many factors, including whether they are holding similar items as collateral and what percentage of real value they offer. Before you settle on price, try a few different shops and see if you can get the amount you want.
Finding an item to pawn can be difficult for some. If you have your car title, you can get an auto title loan through TitleMax®. You could get cash to take care of bills or handle other financial problems quickly and easily. At TitleMax®, we help thousands of people every day who are unable to secure a loan from their bank. Unlike a traditional pawn shop that will store your property as collateral, when you pawn your title at TitleMax®, you get to keep your vehicle while you make payments on your loan. Contact us and let us help you get the money you need.