If you have already pawned an item for money, then you already know that this is a good route to take to get some extra money in your pocket. Even better is the fact that pawnbrokers don’t care about your credit, because your personal property will be securing the loan. With all of the different pawn shops popping up, it may be hard to choose the best one, so we’re going to give you a helping hand …
Have an Understanding of How a Good Pawn Shop Operates
Pawn shops are a great place to go when you need some extra money, but it is also a good place to go in order to get a used item at a discount price. At a pawn shop, there are three things you can do. You can sell your items. You can pawn items. Or, you can buy items. When you’re pawning an item, you will be giving the pawn shop your item for a specific amount of time (between 30 to 90 days) in exchange for a cash loan.
You will then need to repay the loan (along with fees and interest) within that amount of time. You shouldn’t go with the option to pawn an item, unless you know you will be able to repay the loan. Also, before you begin, you should have an idea of what your merchandise is worth. This way, you will know whether or not the pawn shop is offering a fair price.
Before you visit the pawn shop, you should take time to read customer reviews. You can do this type of research online and see what others have to say about local pawn shops. Keep in mind that it’s not easy to please everyone – even the best products out there will have some unsatisfied customers here and there, so when looking at reviews, keep an open mind.
A good pawn shop isn’t going to take any shortcuts –they should be properly licensed. Pawn shops that operate in the United States have federal, state and local laws that they are required to follow. They must also follow the IRS Code and comply with the US Patriot Act as well as the Truth in Lending Act.
The pawn shop is also required to carry state and local licenses as well. A good pawn shop will have numerous licenses, including a pawnbroker’s license. They may also have a general business license and a secondhand dealer license.
On another note, if you plan on pawning your merchandise, you’ll want to have some assurance that the owners are going to have insurance coverage to protect your property. If the shop isn’t properly licensed, then insurance isn’t possible. Therefore, make sure you avoid any pawn shop that doesn’t have a license because they are not compliant with the law.
Finding a good pawn shop isn’t all that hard. You just have to set some time to the side, do some research, and make sure they’re licensed.