Whether you're putting together cash to handle an emergency, running a little short at the end of the month, or just trying to get rid of some items taking up space at home, pawning valuables can be a fast and easy part of the equation.
If you've never pawned anything, though, it might seem a little intimidating. To get you started, here's a brief guide to how the pawn process works and what it can do for you.
What to Bring
Most people automatically think of jewelry when they think of pawning something from home. But in actuality, many different things can be pawned as long as they have value and are desirable by potential buyers. In addition to jewelry, consider pawning electronics, guns and weapons, musical instruments, collectibles and quality tools. However, avoid things that are out-of-date or cheaply made.
How to Prepare
If you have something particularly valuable—and if you have time—you may want to have it appraised in advance so you can negotiate a fair price. Even if you can't, spend some time cleaning up the item, if possible. Also, check to make sure things like tools and electronics are in good working order so they will be worth more.
Since pawn shops are legally obligated to determine if the item really belongs to you, it's a good idea to also bring something that proves your ownership. A receipt, of course, is ideal. Depending on how you came into possession of the goods, you may be able to find proof of purchase in online transactions or by contacting the person who gave it to you.
Take along valid, government-issued identification with you to the pawn shop as well.
What You Receive
A pawn shop basically issues collateral-based loans that vary based on the value the owner determines for your item. The loan carries some interest and is often a short-term loan.
You will receive a ticket that spells out the terms of paying off the loan and getting your item back within a specified time frame. If you choose not to return and pay back the loan, the pawnbroker will simply keep your item and sell it.
You may be able to extend the time you have to pay the money or sell the goods outright, so check with your pawnbroker if you're interested in either option.
Why It's Safe
The practice of keeping collateral when offering loans is an age old arrangement, and it's one that banks and other lenders basically do, albeit in a less tangible form than holding on to Grandma's ring.
Pawn shopsare also often regulated by the state they operate in, and they have to follow rules and regulations regarding the financial transactions and some of their goods. They must be licensed to sell firearms, for example.
What It's Good For
Using a pawnbroker is a good way to drum up cash fast and without a lot of credit or background investigation. Check with your local pawn shop to determine the finance charge or interest rate they offer, since it may be a better rate than using credit cards or other traditional forms of money loans.
It's also a good way to rid yourself of something unneeded that you can't quite commit to selling immediately. Think of the loan period as a cooling-off period where you can get your items back if you really decide you can't part with them. Some people also like to use pawning to recoup some of their money for seasonal hobbies like outdoor sports or to easily trade out electronic gadgets.
It's obvious that pawning can be a valuable part of your financial plan, whether or not you have an emergency. And now that you know how the process works, why not give it a try today? Contact Gardena Jewelry & Loan Co. for more details. Your wallet will be happy you did.
