Pawnshops: 5 Things You Need to Know

Do you need quick cash? Looking in your attic, basement or garage for valuable items you no longer use and heading to your local Long Island pawn shops can be an easy way to put some cash in your wallet. Before you head on over, it’s helpful to know the ins and outs when it comes to shop transactions.

Don’t feel embarrassed or intimidated when going to a pawn shop. However, there are some things you need to know.

  1. Don’t believe the negative hype

The media often paints a picture of pawn shops that make them look shady and sketchy, leaving many to believe that it is a dirty and shady place to be. In reality, pawn shops are in no way like this. Pawnshops must follow 14 federal statutes and regulations, not to mention local and state laws. Most are clean, well-kept and professionally run stores by people who take pride in providing the best customer service.

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  1. How a pawn shop transaction works

Pawn shops offer collateral based loans. This loan is secured by something that holds value. If the pawn broker is interested in your item, they will keep the item until you pay the loan. The amount of the loan will be just a fraction of the current value of the item.

You also have the option to sell your item to the shop. Brokers would rather you do a loan because there is more potential for profit.

You will receive a pawn ticket. This is a receipt and summary of your loan terms. You must not lose this.

  1. Repaying the loan

With the pawn ticket, you return to pay the balance. This includes the amount of the loan and any additional fees before the stated deadline. This deadline typically occurs anywhere from one to four months after the initial pawn shop transaction.

If you don’t return, the pawn shop can keep your items. This means you lose your item. There will be no collection action and your credit will not be affected. You may have the option to extend the loan period by several months if needed. But this means you will be charged additional fees.

  1. What pawn shops don’t want

Only take items of value to a pawn shop. If the item in question is outdated, cheaply made or would be difficult to sell, don’t waste the pawn broker’s time and energy.

  1. Making sure you are the owner of the item

Pawn brokers must legally confirm that you are the legal property owner. Be prepared to answer a lot of questions. This helps them feel comfortable with the fact that you are indeed the item owner. As required by law, you will also be expected to present legal identification.

If you’re in need of money, use this information to feel comfortable in visiting a pawn shop to get some quick cash. Preparedness is key in having a smooth and easy transaction in one of your local Long Island pawn shops.

 

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