Top 9 Common Pawning Mistakes To Avoid

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pawn shop

Have you ever planned to pawn something, only to realize you’re about to make a big mistake? I know I have.

Truth is, it’s very easy to make mistakes when trying to sell an item. When I started pawning my items, I wanted them to go as smoothly as possible. Of course, there were a few hiccups here and there, but I didn’t make the “big” mistakes that ruined my experience. In this article, I’ll be going over the top nine mistakes I see people making when trying to sell their items. I hope that this information serves you well in your future pawning ventures.

Pawning Mistakes To Avoid

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There are many things to consider when you decide to pawn something. According to  USA Pawn and Jewelry, a reliable pawn store all across the country, below are the top eight common pawning mistakes to avoid:

Not researching the legitimacy of your chosen pawnshop.

There are plenty of online resources to help you find reliable pawn stores like USA Pawn and Jewelry near you. The Better Business Bureau (BBB) even has its own website specifically devoted to helping consumers choose trustworthy businesses in their area. You can also use Google Maps to find nearby pawnshops that have been reviewed by other customers, or ask friends or family members if they’ve ever used a particular store before and whether or not they would recommend it.

You can be also thinking that all pawn stores are created equal, but many of them have different policies regarding what they will accept as collateral, what they charge in interest on loans and other fees associated with pawning jewelry, electronics or other items in their stores (which means one store might be better than another depending upon what you want to pawn).

Not getting the best price.

A lot of people think that they have to settle for whatever price they can get when they take their items to the pawn store. However, this isn’t true at all. If you know what an item is worth, then you can negotiate with the pawn broker and get a better price for it. 

Don’t accept their first offer as it will be low because they want to make money on commission from selling your item. Instead, tell them what you want and try to work out a deal with them so that both parties win out in the end.

Not knowing how much your items are worth.

There’s a big difference between what a used item is worth and what a new one costs. If you’re only interested in getting some money back on an item that you’ve worn out, then it’s probably not worth having it appraised. The best way to get the most out of your jewelry is by selling it at a pawn store that specializes in jewelry sales instead of selling it online or at another shop.

Being vague about the condition of your item.

If your item is damaged or broken, be honest about its condition so we can give you an accurate appraisal of its value. This will help us determine whether or not we can still purchase the item from you at all or if we’ll need to offer less than what it’s really worth since repairs may cost more than we can afford for the amount of money we would receive from reselling it.

Not knowing the loan terms.

Pawnshops offer short-term loans and can be a good source of quick cash, but they charge high-interest rates on their loans. That means it’s important to know what you’re getting into before you sign on the dotted line.

If you don’t understand the terms of a loan, ask questions until you do. If anything seems unclear or confusing, don’t take the risk — find another solution for your money troubles instead.

Not having proof of your identity.

The most common mistake people make when pawning items is not having a valid form of identification. You’ll need to provide a government-issued photo ID, such as a driver’s license, passport or military ID. You may also be asked to provide additional documentation, such as your credit card statement, utility bill or bank statement. If you don’t have any of these documents available, you may be able to use a secondary form of identification, such as an employee ID or birth certificate.

Not understanding how much interest will be charged.

You should also know what interest rate you’ll be charged and what other fees might apply before you go into the store. Interest rates vary from state to state, but here’s a simple rule: The higher the value of what you’re trying to pawn, the lower your interest rate will be. On the flip side, if you want a lower interest rate, then ask if there are any special deals or discounts available only for first-time customers.

Choosing just any pawnshop.

Pawnshops are regulated by state and federal laws, so they’re all required to post information about their business on the walls or windows. You want to make sure that the shop is reputable and won’t try to scam you out of money or property. Some shops have bad reputations for charging high fees or offering low rates for collateral items. In addition, remember to always check this info before you go in and make sure it matches what they say over the phone or online. You should also look up reviews from other customers. If there are complaints about high-interest rates or other problems with service, it’s best not to use that particular shop.

Pawning Something Sentimental

Pawning something that has sentimental value only for the sake of getting cash quickly. Then not realizing that it probably won’t be worth as much as you would like to think it is (and then having to pay more interest because of that).

You may be surprised by how many people have pawned items that were important to them. It’s easy to do and can be tempting because it seems like a quick solution to your money problems. Remember that you can’t get your item back if you need it. If you have an emergency or lose your job and need the money in order to pay rent, etc., then you won’t be able to use that money until after the loan has been repaid in full (if you don’t repay the loan in full). In addition, if you don’t make payments on time, you could lose your item permanently! 

Also, if you have a history of not getting your pawned items in a pawn store, it will affect your credit score and history of loans taken out with that pawnshop or bank. pawn stores report loan activity directly to credit bureaus, just like banks do with other forms of loans or lines of credit.

Takeaway

We’ve covered some of the worst mistakes you can make while pawning, but that doesn’t mean there are any guarantees. We hope these nine tips will help protect you from even more common pawning mistakes, and we at USA Pawn and Jewelry hope to see you soon.