If you're short on money and facing an emergency, you might get the money you need from a pawn shop. You can sell your personal items for cash or take out a loan against them. Here's how to work with a local pawn shop.
Choose and Clean Your Items
Look around your house for things of value you can take to the pawn shop. Keep in mind, the cash or loan you get will be a percentage of the value of the item, so you might need to gather a few things. Clean the items to make them look as nice as possible so the shop offers you the best price. Things to consider pawning include power tools, jewelry, fairly new electronics, and antique items.
If you don't know the value of the items, have them appraised or check prices online so you have an idea of their worth. In addition to knowing what the items are worth, choose the lowest price you're willing to accept so you're ready to negotiate a price.
Decide If You Want a Loan or Cash
If you need money and you don't have a way to pay it back, selling for cash might be your best option as long as you're not attached to your things. If the items have monetary and sentimental value, such as a musical instrument you played in high school or your grandmother's jewelry, you may want a loan so you can get your things back. If you have a source of income and you'll be able to pay off the loan according to the terms, then getting a pawn loan could be a good way to cover a financial emergency.
Understand the Terms
Before accepting a pawn loan, understand the terms. Pawn shops are regulated by state laws, so you don't have to worry about them stealing your things or being dishonest. The terms of the loan, including added fees, interest, and the due date will be explained upfront. The pawn shop is in business to make a profit off of loans, so they are usually eager to do business with you as long as the items you want to pawn are in good shape and worth something.
If you don't get the loan paid off by the due date, the pawn shop gets to keep your things. However, that could be a risk you're willing to take when you need money and you don't have another way to get it. The good thing is not paying back the loan won't affect your credit since the shop gets to keep your pawned items.
That can make a pawn shop a better option than a payday loan that can have negative consequences if you can't pay your payday loan back. A pawn shop also doesn't require you to show proof of a bank account or job. All you need is your state ID, and possibly proof of ownership of what you're trying to pawn. That makes getting a pawn loan quick and easy.