Perhaps you have a basement or an attic that is full of items that have value, but it’s just sitting there collecting dust. If so, then you may want to think about packing it up and heading over to the local pawn shop. However, if you have never done business with a pawn shop, then it would be a good idea to learn a bit about their operations beforehand. Below, we are going to give you some information on how pawnshops work.
Getting a Loan
Take a look at how pawnshop transactions take place:
You bring an item in and the pawnshop will offer you a collateral-based loan. This means that you are securing the loan by offering something that has value. The pawnbroker will keep the item you “pawned,” until you have repaid the loan. The loan amount will be a tiny fraction of the actual value of the item.
If you’re looking for more money, you can always sell the item to the pawnshop. However, many pawnbrokers aren’t as enthusiastic about these type of transactions, because loans bring in more profit potential for them.
When you pawn the item, you will receive a pawn ticket. It is important that you keep this ticket in a safe place and don’t lose it. On the pawn ticket, you will find the terms of your loan like the expiration date, fees, and description of your item and so on.
Repaying Your Loan
When it comes to repaying that loan, you will have a couple of choices:
First, you can pay the balance (this includes the added fees) before the deadline. The deadline is usually 1 to 4 months after the transaction.
Secondly, if you don’t return, the pawnshop will keep your item. Apart from losing the item you originally pawned, there are no additional consequences. This means it won’t have an effect on your credit and there will be no collection action.
Don’t Believe Those Bad Things
The media has a tendency to make pawnshops look bad, but they’re not the scary, shady places they’re made out to be. Many look at pawnshops as if they’re seedy and dirty, but they’re not. Believe it or not, pawnshops have a total of fourteen federal statutes and regulations that they are required to follow, and that doesn’t include the local and state laws they have. The majority of pawnshops are clean, legit stores that are ran by people that take pride in offering good customer service.
What Pawnshops Do and Do Not Want
Do – Pawnshops like rare coins, jewelry, firearms, game consoles, musical instruments, and high-quality tools.
Don’t – Pawnshops don’t like anything outdated, cheaply made, or difficult to store.
In the end, when you go to pawn or sell an item to a pawnshop like Majorpawn.com, they will want to make sure you’re the legal owner. Be prepared to answer questions about the property – that is them making sure you own it. Also expect to show a government-issued ID as this is required by law.