When you need quick cash one of the best options is to trust in a local pawnshop. Compared to other loan options, pawnshops are one of the best ways to get money quickly without strings attached or a negative effect on your credit score. But there are two main options when it comes to working with a pawnshop: sell or pawn. In this article we will cover a few reasons to consider which option is better for you. If you are in the NYC area and are interested in learning more about the selling or loaning process or you want to know the value of your items, give us a call or come visit our locations in the Bronx.
The Benefits of Pawning an Item
A pawnshop exists to help local people quickly and easily get access to needed funds in exchange for their items. Briefly stated, the way the loan process works is your item is evaluated by the shop and they provide you a loan based on that evaluation. That item is being used as collateral for your loan. This loan will not effect your credit score and is between you and the store. Once the loan is paid off including the interest on the loan, you will receive your item back. Pawning is a great option for anyone who needs quick cash, doesn’t want to lose an item, and is certain they will be able to pay the loan back in the future. A great example is when you need to make an important payment on rent or potentially another vital bill, and you don’t have the money you need at the moment but you know you will have that money in the near future because of your income. So three important things to know about pawn loans is that first, there is a lot of protection to make sure a pawn shop cannot immediately sell your item the exact second you are late on a payment. Aside from laws in place, many pawnshops want to work with their customers. You cannot build a good reputation if you are unable to work with people. Second, if you are unable to pay back the loan at the end of the term, you can renew the loan for an additional period, by paying the interest. You will get a new pawn ticket and extend the time frame to pay your loan back. The third thing to know is that the money you get for a pawned item is much less than what you would get for a sold item.
The Benefits of Selling an Item to a Pawnshop
If you know you will not be able to pay off a loan, you are better off selling it to the same shop, period. You will get more money upfront if you aren’t asking for a loan. Whenever you sell to a pawnshop, a consignment store, or another used store they will give you a little less than what they believe they can successfully sell it for. This is because they need to make a profit on the sale. So if they can sell your used electronic for $100 they might buy it from you for $80 so that they can make a profit of $20. But with a pawn loan they will offer less. Pawn loans are known to be valued at anywhere from 25% to 60% what the item is evaluated at. This is because the main way a pawn loan makes a profit is from the interest and not the resale value. While it is true that an item that is never paid off could eventually be resold, that is not the intent of the loan. So if you need money quickly, you don’t think you will have money to pay off the loan in the future, or you are ok getting rid of the item, you should consider selling instead of pawning.
Pawn & Sell Items in NYC
If you live in the NYC area the team at Paradise can help you get good values for items you want to sell or pawn. We believe that it is important for pawnshops to work with their customers and to provide great value. If you are looking to get a loan or sell an item, please give us a call or visit our locations in the Bronx.