Applying for a loan at the bank can take days or even weeks at times. You can renew the loan, but this adds more fees and interest charges, increasing what you have to pay. Pawn stores are popular for quick loans that rely on collateral — like your jewelry — as a means of financial security.
However, you can also sell items to a pawn shop. But why sell instead of pawning? What benefits do you get? What are the downsides to this?
The main benefit of selling is that you get a much higher value compared to pawning. The money you get for the item is yours. Another advantage of selling vs. You can sell them and never have to worry about them again.
You get the cash as one big sum in a one-time transaction. With pawning, you can still get it back as long as you pay the fees and the loan. In need of quick cash? Selling and pawning seem similar, but their subtle differences are significant to consider before you sign away your valuables.
Looking to sell or pawn something? Feel free to contact us , and we can walk you the process. You can also check out our selection of items for sale, in case something catches your eye. David Stiebel is one of the cofounders of PawnGuru. David was educated at MIT, where he studied Math. He subsequently worked at Bain as a data scientist before starting PawnGuru in He started PawnGuru to build a better tool for pawn shops and consumers to connect.
I like that this mentioned that selling your items to a pawn shop can get you a much higher value than pawning it. It sounds like it may be able to sell for a good amount of money. Do you have any tips for choosing a reputable pawn shop in my area? It was really helpful when you said that one of the benefits of pawning is that the person can actually retrieve the item they have pawned as long as they pay the loan back. But I have heard that there is only a specific time for this and that afterward, I can no longer get the item back.
Perhaps, I need to do more research on this before trying it out. After all, I am planning to pawn a very important family heirloom. It was really nice when you said that pawn shops do not look at the credit history if I ever transact with them and that the only thing that is important for them is the value of the item that I intend to pawn. Surely my friend will be thrilled to hear about this because he has a rather unpleasant credit score. Actually, the reason why he plans on selling a few pieces of jewelry was to pay off some of his credit debt.
I liked what you said about pawning not affecting your credit score. My friend is looking for a way to get some money, but knows that a loan from the bank will be really difficult for her to pay back regularly, which will hurt her in the long run. First, when someone decides to sell an item, they find a buyer and the two parties come to terms on a price. A transaction is made and ownership of the item is transferred to the purchasing individual. Pawning, on the other hand, works differently.
When someone decides to pawn an item, they take their belonging and use it to obtain a loan. The item becomes collateral for that loan. The ultimate sale of that item only happens if the owner cannot repay the loan. When looking at pawning and selling, there is another large difference. Usually, a pawn shop will pay more for an item than a straight out buyer will. This is because pawn shops have accompanying fees and interest. So, when you add in the money that the pawn shop will be making there, the difference is not highly significant.
However, it is something to be considered. A buy-sell-trade store is a different matter entirely. Here you are selling your items outright at a price agreed upon by the buyer and seller. This is not a loan, and you should not expect to rescue your item. If you are hoping to retrieve your item, you should go to a pawn shop, as trying to buy back something you have sold in a buy-sell-trade store will probably cost you more than the interest on the loan against the item that the pawn shop would offer.
On the plus side, anything you see that you like in a buy-sell-trade store like Record Head in West Allis, you can buy it immediately. There is also the trade option available at a buy-sell-trade store. If you opt for trade, the store will usually give you store credit for the items you sell, which you can then use to buy the items in the store that interest you.
Whether you will opt to take your valuables to a buy-sell-trade store or a pawn shop will depend largely on what your needs are with respect to your items. If you are simply trying to liquidate some old items, the buy-sell-trade store is for you. One big advantage of a buy-sell-trade store is they will give you a price on just about anything.
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