How to Safely Pawn Something You Love

Pawn shops exist in every state in the United States, and about 30 millionpeople a year use them as a source of cash. Americans pawn jewelry, cars, and guns, among many other personal possessions. In California, luxury watches are the item most commonly pawned. The loans are a convenient solution, but you should take steps for successful pawn experience.

A pawn transaction allows people to borrow money against the value of the property they bring to the shop. The option is perfect for someone that wants to keep their belongings but needs cash instantly. Credit ratings, current debt, income levels, and lack of employment will not affect the ability of someone to receive this type of loan as it would with other lenders.

The only consideration for the person exchanging their item for a loan is if they can pay the loan back within the allotted time. Most shops give people a few months to repay the loan, with the addition of fees and interest. The pawned item becomes the property of the shop if the borrower fails to meet their obligations of the loan.

Make certain you have enough money in your budget to make the payments. Do not make false promises or hope an unexpected windfall arrives. Pawn only the minimum value of items needed because the temptation to spend extra cash could complicate the repayment. Always consider pawning less important items or things with no real emotional value first.

Know the reputation of the pawn shop, and only use one that follows local laws. In California, pawn shops must give people at least 30 daysto repay their loan and retrieve their items. The law requires the dealer to notify the police of everything they take in each day, to track who brings the property to the store, and to hold a valid license as a secondhand dealer.

Expect the shop to question where the items came from and if you are the owner. You will need to show a valid photo ID the clerk can copy and keep on file. The rules protect the community and the shop owner, but they are also a safety precaution for the customer as well. The documentation of the transaction helps to keep your property safe.

Do not pawn anything that is not solely yours even if you plan to pay the loan and retrieve the item from the shop. Do not use items you bought and gave to someone else or property you expect to inherit someday. Have all owners present at the time the pawn agreement is made when the property is co-owned.

All pawns should include a written contract. Read through the agreement to know the details of the transaction. The details should include the terms of the loan like fees, interest rates, and length of time to repay. Ask for a breakdown on the fees. Do they charge storage fees, late fees, or fees for lost receipts? Know how they keep pawned items secure and if they carry insurance.

The contract should also include an accurate description of the pawned property or a ticket number to cross reference. Keep the contract and any claim ticket safe so no problems arise when you make payments or arrive to retrieve the item.

A record of every payment prevents any confusion. Pawn shops often put items up for sale immediately when people fail to follow their end of the agreement. The belonging is lost once the property leaves the store with a new owner. Receipts are a precaution in case of paperwork errors or incorrectly applied payments, so check them carefully before you leave the shop.

Modern pawn shop owners work with their customers because they appreciate return business and problem-free transactions. Always communicate directly and honestly with the staff about a potential late payment. At Gardena Jewelry & Loan Company, we offer a generous repayment term and a grace period, so people have the time they need. Contact us for more information.