3 Things to Consider When Pawning Valuables

Would you like to make a bit of cash while clearing out the house? Are you looking for some spending money? A solution may exist. Pawning the right items can be worthwhile, helping to pay off an immediate bill. The shops often have several options: sell it to them directly or accept a loan, pay it back and reclaim your valuable. But this isn’t a garage sale venue. Not everything is going to work. The owners aren’t looking for junk. They need quick turnaround in case you can’t repay; therefore, if you hope to pick up a bit some funds, you’ll need to understand what to do and what to avoid.

1. Pick Something People Desire

Look up in the attic, scour the cabinets and check your jewelry boxes. When you consider pawning something, select something with monetary value. It should not be peculiar, broken or cheap. Instead, it should be of high-quality, attractive and popular. For example, the following are typically good choices:

  • instruments
  • historical memorabilia
  • gold or silver jewelry
  • sports cards
  • coins
  • phones
  • computers or tablets

Why these? Patrons are deal makers, entering these stores to find things they require or want (but at a better price). They are looking to fill a demand that they can’t afford (or don’t want to afford) at another big box office store. For that reason, the proprietors seek sales that can be turned around quickly.

2. Do Research Ahead of Time

You picked out your piece, but don’t race through the doors quite yet. Don’t just show up at a pawn shop ill-prepared. Do your research first. Go online, and look up information about the prospective shop and whatever you believe will garner you money. As you read up, you’ll find estimates on the value and whether this particular piece will sell well in the area. For example, are you ready to part with some of your baseball card collection? If so, you can look up the various card prices. Print the online listings, and bring them with you. With this knowledge, you can now discuss proper payment, working with shopkeepers to determine a fair price.

3. Understand the Terms

This is like going to a bank. Know the language. Ask questions. Read through documents. Once you sign the paperwork, that is finalized, and you are responsible for following through with the agreement or forfeiting your item. For example, are you accepting interest on the sale? If so, how much is it? Can you afford the upcharge? Let’s say you need 200 dollars, so you sell a family necklace. The interest is 25% each month, putting an extra 50 dollars on the tab. How do you plan to find an extra 150 at the end of the three month term? Make sure the timeline is feasible. You don’t want to lose something precious to you.

This isn’t a quick stop. You’ll need to invest some reflection and organization, but, overall, it could be very helpful when you’re in a tight spot. 

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