- June 4, 2021
- Posted by: pawnusa
- Category: blogs
If you have several items lying around at home and need extra cash, your immediate response is to probably sell them online. While it isn’t exactly a bad idea, a better solution is to take it to a pawn shop.
If yes, then our post will enlighten you on why pawn shops are better than payday loans, eBay, or other similar platforms.
Pawn Shops Overview
We bet you have an idea of what pawn shops are. After all, we’ve seen the reality TV shows too. However, that’s just a tiny part of what pawn shops really are.
If you must know, 30 million people use the services of pawnshops each year. They are professionals offering retail operations, and their primary role is to buy and sell items. What’s good is that they offer terms that are way better than other lenders with outrageous fees.
The way it works is that you take your item to a pawn shop, and the pawnbroker will give you a percentage of the item’s value. You will then be provided with a schedule on when you should pay it back. This is considered “pawning” an item.
In the case you cannot pay it back, the pawnshop will keep your item and sell it to make a profit.
Advantages of Using Pawn Shops
Here are just a few advantages of using their services.
- You Can Avoid Payday Lenders
If you have been reading articles about loans and how to become financially free, you would often read this tip, ‘avoid payday loans.’ It’s because they are known to have higher interest rates. If you get loans from there, you will be drowning in debt if you can’t repay them on time.
A better solution is to pawn. All you have to do is bring your item for appraisal, get the money, and it won’t hurt your credit score.
- You Don’t Have to Wait for a Long Time
You might think that selling it on eBay is better than getting a payday loan. Yes, that could be true. But just so that you know, you still have to wait for a long time. There’s no guarantee that it will be sold right away. And if you need immediate cash, this might not be a good option.
- You Can Avoid Scams
Here’s another truth bomb. When you transact online, expect that there will be a lot of scammers. They are everywhere, whether on eBay or Craigslist, and it is hard to pinpoint, especially if you are not used to selling online.
If you want to stay away from scams and to get your money for your products, pawn shops are the way to go.
Choosing the Right Pawn Shop
Take note that not all pawn shops are created equal. You still need to do your due diligence to find the right one that will offer you a fair amount for your items. The easiest way to search for the right pawn shop is to read reviews and check if they are properly licensed. In addition, choose one that is convenient for you so you can easily visit the shop.