Pawn shops come in all shapes and sizes, from pricey establishments dealing exclusively in unique, high-value collectibles, to humble shops run by locals for locals. That’s why, it’s easy for rumors to spread and for people to often get the wrong idea about what pawn shops are and how they operate. That’s why, our knowledgeable staff at Traders Loan and Jewelry is here to dispel the myths and expose the top 10 secrets of pawn shops that you may or may not know.
Pawning Is Big Business
There may be less than 15,000 pawn shops in the United States, but they are relied upon by more than 30 million Americans across the country. Pawning is the most convenient way to earn cash for things you don’t want or need, and can even be used as a risk-free loan option for when you’re desperate for funds but don’t want to be forced to sell anything or deal with a traditional bank.
A Lot Of People Need Pawn Shops
Whether a person has bad credit, or simply looking for a loan with zero risk, pawn shops are always the best answer. They offer same day financial relief that can be used however the recipient sees fit, and there are no penalties of any kind for abandoning the loan if you can’t pay, just forfeiture of the item(s) you used as collateral. For people with terrible credit, or who are unemployed and need money now to pay off past-due bills or buy food, pawn shops really can be a financial lifeline.
Most Real Pawn Shops Are Different Than What You See On TV
Unlike the television spectacles that display pawn shops as massive treasure troves filled with limitless rare collectibles from every facet of life, both real and fictional, real-world pawn shops are typically a lot less flashy. Depending on the area you live in, you’re more likely to find items like high quality jewelry, electronics, appliances, weapons, and musical instruments than anything else.
Not All Pawn Shops Offer The Same Value
One of the best things you can do when pawning an item is make sure you choose a reputable, trustworthy pawn shop, like Traders Loan and Jewelry, to ensure you get the best price for the items you’re selling and pawning.
You Can Pawn Just About Anything
Though certain pawn shops are likely to be more interested in specific items, a lot of the time you can still get an offer on any item so long as it’s in good condition. It’s all about finding the right pawn shop. One broker who specializes in gold and firearms may not see any value in a collection of vintage baseball cards, but a broker who specializes in sports memorabilia or antiques definitely will.
You Should Always Go In Knowing Your Item’s Estimated Worth
Sentimental value and fiscal value are not the same, so you can’t expect to get a high offer on an item just because it’s incredibly special to you. That’s why, it’s essential you do your research before you visit a shop to determine the actual fair market value for what you want to pawn/sell. It will give you a realistic perspective of how much you should expect to receive, and can even prevent you from being taken advantage of during negotiations.
You Still Have To Pay Interest
Although pawn shops are renowned for offering fantastic financing options and loan terms for people with bad credit, it is still a for-profit business, which means you will have to pay interest on the amount of your loan. However, you will always know what your loan terms are and what your total owed amount will be before you sign any paperwork. Plus, if something happens and you can’t pay, you can always walk away freely without consequence except losing the item(s) you used as collateral. However…
Almost Everyone Gets Their Items Back
An impressive 85% of all customers who pawn items at pawn shops eventually retrieve them once again after successfully fulfilling their financial obligations. Unlike payday loans, which see more than a third of its borrowers default within less than six months.
Pawn Shop Patrons Are Often Unemployed
Less than 50% of pawn shop patrons maintain full-time employment, with adolescents aged 18-25 and seniors over 50 making up a majority of that populace. But that’s only because young people in need of extra cash, and older people downsizing for retirement are the most likely candidates to both not have jobs and be in need of a pawn shop’s services.
A Lot Of Pawn Shop Patrons Don’t Like Banks
Another reason pawn shops are a particularly sought after source of financing is because a lot of people have already had negative experiences in the past with more traditional financing sources, and simply no longer trust banks.
Bottom line is, if you’re going to go to a pawn shop, you’ve got to pick a good one – which is why we encourage you to visit Traders Loans and Jewelry today. After all, you can’t get any better than the oldest and best pawn shop in the Valley! Stop in to Traders Loan & Jewelry today at 18505 Sherman Way Reseda, CA 91335, call 818.345.8696 , or simply fill out the form on our contact page if you have any questions.