Pawning something for the first time can be a nerve-racking experience. I know, I see it every day in the faces of my customers, some of whom have never been in a pawn shop and have no idea what to expect. The truth is that what happens when you pawn something is straight forward, easy to understand and not worth worrying about most of the time.
Pawning is a simple process really. In fact, it’s so simple that you might not think you ‘caught it all’ after having done it the first time.
It all begins with finding something that you can pawn. Normally people use things like jewelry and tools, but most pawn shops will take in all sorts of items like musical instruments, electronics, TV’s, etc.
The next thing that you will want to do is to make sure that those items follow what I call the “3 C’s” of the pawn industry.
That is that the items are:
- And Charged (if it applies)
You want to present the item in the best way possible so making sure that it is clean is important as if will give the pawn shop the best view of what it is that you are trying to barrow money against.
In addition, you don’t want it to be missing pieces so make sure that whatever it is that you are pawning is complete. For instance, it’s common for people to bring in TV’s and not the remote controller, or video games systems without the power supply.
If you want to get the most money possible, be sure that you have all of the parts and pieces to an item and that they are all clean and in good working order.
The last C is to make sure that the batteries are charged if whatever you are using needs batteries. The pawn shop will want to make sure that you item works properly and if the batteries are dead, they will have no way of knowing that. Ultimately, if they can’t test the item out, they may not give you as much as they could had they been able to test it – or worse yet – they may not take it in at all!
What Else Happens When You Pawn Something
When you’ve found your item or items to pawn, you will want to have you state ID (that’s current) and head down to your local pawn shop.
Head in and show the pawn broker what you have that you would like to make a loan on. They will take a look at it an evaluate it to see if it’s something that they can work with.
That normally means that they are going to see if it’s cracked or broken in any way – or just generally look at the condition of the item. They will test it out and may have to do a little research on it to see what they can offer you.
Then once they know all of that they will let you know how much they are able to loan against your item. Typically speaking, that’s going to be between 40-65% of what an item in similar condition and completeness sells for on a site like eBay.
If that amount of money would help you out, they will normally have a small form for you to sign. States mandate what have to be on those forms, and all states are a little different, but normally that will include how much you borrowed, the payment terms, and the due date.
Once you sign the agreement (and don’t worry, it’s not intimidating) you will get cash on the spot. They will then take your items and store them in a safe, secure location where they won’t be misplaced or damaged in any way.
Pawnbrokers take a lot of pride in keeping people’s valuables safe and most pawn shops have outstanding reputations for maintaining high standards for property security.
Time To Get Back Something You Pawned
When you are ready and you have the money to do it, you will want to head back into the pawn shop with your original transaction slip or receipt, your state ID and the repayment amount for the loan.
The pawnbroker will normally have you sign a slip saying that you’ve pickup your items, you pay them the full amount of the loan plus any storage and interest, and you will get your item or items back just how you left them.
It’s really that easy – making a pawn loan isn’t rocket science!
The Nerd’s Opinion On Pawn Loans
Look, it’s not tough to make a pawn loan. In fact, it’s quick, easy and normally very cost effective.
If you have any reservations about making a loan at your local pawn shop, I would say that you can probably relax. It will be okay.
Pawnbrokers are professions and take pride in the businesses that they operate. The staff at your local pawn shop will treat you with courtesy and respect.
On top of it, it’s a great source for fast, short term cash when you need it – and let’s just be honest – we’ve all had a sudden bill or unexpected expense come up that we weren’t entirely prepared for. That’s just the nature of life these days.
So take a moment and realize that when you pawn something, it’s going to be okay. Nothing bad will happen as long as you pay back your loan on time – which is normally pretty easy to do. You’re items are going to be safe and secure. It doesn’t matter if it’s a $10,000 ring or a $10 video game, pawn shops are in business to help you and will keep what you’ve got protected.