Pawn shops are great for people who need cash in a hurry. It is also a great place for you to get cash for the things you no longer need such as unwanted gold jewellery. Your items only land up on the sales floor if you fail to pay your loan back or if you decide to sell your valuables from the onset. So, what do you need to know about pawnshops in order go have the best experience:
Melbourne Pawnbrokers offer a simple and hassle-free way of obtaining a loan. You don’t need good credit or proof that you are employed. When you apply for a pawn shop loan you use your valuables as collateral. The more valuable and in demand your items are, the higher the amount of the loan you can get. However, there are some things you may need to know about pawnbroking:
#1. How much do you need to loan?
A pawnbroker does not need to know why you need to borrow money from him but it would be helpful to let him know what you are hoping to get. This will allow him to work with you to get what you need. A pawnbroker might be able to offer you advice on how you could get the amount of money you need. This may include helping you identify other things you may have to offer that could increase the amount of your loan.
#2. Check which pawnbroker will accept your items
Before bringing your goods to a pawn shop make sure that the pawnbroker accepts the kind of items you have. Most Melbourne pawnbrokers accept jewellery, watches, smart devices, household electronic items and more. If you are not sure, call and ask whether they accept what you have to offer. The pawnbroking industry has grown in the last couple of years. There are high-end pawn shops that accept everything from Rolex Watches to Lamborghini’s. People have realised that it is not only working class people or the under-banked who find themselves needing short term loans like pawn shop loans. Sometimes the guy with the Lamborghini needs can quickly and might not have the time to go through the long process a bank and other lending institutions would take them through.
#3. What does the loan cost
The pawn shop should be transparent about its pricing structure and give you as much information about other fees so you can figure out what the loan will end up costing you. The pawnbroker should be upfront about his interest rates and other fees so, you can determine whether you can afford the loan or not.
#4. Make sure that you prepare the items for sale
The loan agreement will depend on the conditions of the items being pawned. If it’s something old that has been lying around for a while like old jewellery, it may benefit from some cleaning before you pawn it.
Remember that you have the option of selling your items instead of pawning. Whether you are selling or pawning, it always helps when the items have been given a little cleaning and polishing.
#5. Get your ID and other documents
When you go to a pawn shop make sure you take your ID along. Some pawnbrokers will require receipts that prove that you bought the items you are pawning.