From the Blog

What you need to know before you visit a pawn shop

Never been to a pawnshop? Thinking about making your first visit? You’re not alone. The poor economy has many people considering pawning items to provide short-term solutions.

“We’re seeing more and more people who’ve never seen the inside of a pawn shop walk through our door,” says Diane Taylor, owner of Traders Loan and Jewelry in Reseda, CA. “They’re looking for short-term solutions without having the sell everything they own,” Taylor continues.

Turning to a pawnshop is nothing to be ashamed about. It’s a great solution to help you get through rough patches. But there are some things that you should know before you visit a pawn shop

The Loan Transaction.

This is how pawnshop transactions work:

  1. Bring in an item that you own. Traders Loan and Jewelry will appraise it for you right there on the spot and if the price is agreed upon, we’ll offer you a loan on your item. If you accept our offer, we will keep your item in a secure vault until you pay off your loan. Once the loan is paid off, your item is returned to you.
  2. You can outright sell your item to us. We’ll appraise it and make you an offer.
  3. If you decide to pawn your item, you will get a legally binding contract, also known as a pawn ticket. It’s imperative that you put this in a safe place. It’s a receipt for your financed item and it also clearly outlines the terms of your loan such as fees, expiration dates, description of your item(s), etc.

Paying your loan back.

There are two options to pay back your loan. They are:

  1. You can pay the principal and the interest to pick up your item. Loans in the state of California are for four months.
  2. Or you can just pay the interest and re-write your loan for another four months. If you choose not to continue your loan, then it will foreclose and it becomes the property of the pawnshop. At Traders, you’ll receive a 10 day notice after your loan expires. Other than losing your item, there are no other repercussions. We are a non-recourse lender and do not report you to the credit bureaus. The national average of people who reclaim their items is eighty percent (Source: NPA). At Traders Loan and Jewelry, the average percentile of people who reclaim their pawned item is ninety-five percent.

Interest rates on loans.

Interest rates are set by the state of California for Traders Loan and Jewelry. Check with your state if you’re not in California. At Traders, we offer a special interest rate of 2% if you redeem your loan within the first month.

People come to pawnshops for all different reasons. For example, they’re in between jobs, they have something special they want to purchase, they want to buy a house, finance a business or want to take a trip. Also, over 30 million don’t have relationships with banks and rely on pawnshops like Traders Loan and Jewelry to meet their financial needs. (Source: NPA) We are the people’s bank.

Pawnshops are a great source of getting cash. Pawnshop fees are usually lower than taking an advance on your credit card and overdraft fees.

At Traders Loan and Jewelry, we clearly explain all fees involved with your pawn before we finalize your transaction. We also clearly list them on your pawn ticket.

What Pawnshops Will Buy And Won’t Buy.

We love anything of value whether it be jewelry, watches, coins, tools, art, furs, antiques, collectibles and musical instruments. If you think of you have something of value, it’s best to bring it in to Traders Loan and Jewelry in Reseda, CA to be evaluated.

Loan Requirements.

Be prepared to show current government issued ID and to be fingerprinted as all items are reported to local law enforcement daily.

Loans are fast and confidential and when you deal with Traders Loan and Jewelry, you can be rest-assured your items are completely secure.

I would love to hear your thoughts. Have you been to a pawnshop? What was your experience? If not, do you think it’s something you would consider in the future? And, as always, thanks for reading.