How to Pawn Like a Pro in 5 Steps Learn how pawning works in less than 5 minutes. Presented by Chapes-JPL
Introduction Occasional money troubles are as unavoidable as death and paying taxes. Don't let unexpected financial challenges put a damper on your peace of mind. Raise some much needed cash anytime you want or need by learning the basics of pawning.
Step 1: Find an Item of Value to Pawn Learn what items pawn shops like to buy and what they stay away from.
Items Pawn Shops Like to Buy Lesson one of pawning like a pro is identifying valuable belongings that you can afford to part with temporarily. Pawn shops will pay top dollar for things like: • gold, silver, or gemstone watches, rings, bracelets, and necklaces • high-end electronics like smartphones, TVs, and computers • bicycles and scooters • gas and electric powered tools • musical instruments
Items Pawnbrokers Stay Away From Alternatively, you are likely to be turned away if you try to pawn items like: • • • • • •
CDs or cassette tapes DVDs or VHS tape movies gold plaited jewelry portable radios or stereos older style gaming systems old electronics in general
Choose Items That Can Sell Quickly Pawn stores are like any other business when it comes to selling fast and making a big profit. Make their job easier by pawning things that they can sell quickly and make money from if you default your pawn loan.
Step 2: Determine the Value of Your Item Learn how to appraise your items independently before visiting a pawn store.
Know What Your Item is Worth The second step of being a pawning pro involves knowing the value of your item before you step foot inside the store. Pawn store owners are like people who invest in the stock market; they want to buy low and sell high. They might offer you less than what your item is worth if you do not do some research first. Get a general idea of what your item is worth by going to websites like Amazon.com, eBay, or other online marketplaces. Don’t forget to factor in the age and condition of the items you want to sell.
Step 3: Shop Local & Online Dealers Learn how to find and choose the best pawn offers locally.
Read Reviews of Local Stores After you get an idea of how much your items are worth, make it a priority to find a local or online pawnbroker who will treat you fairly and bargain with you earnestly. Start by reading online reviews of pawn stores in your area. Choose those pawn dealers that have the best customer reviews and highest ratings for factors like safety, cleanliness, and transparency. Keep an eye out for fake reviews as they run rampant online.
Understand Each Store’s Policy Take note and understand the policies by which each store broker does business. These policies may impact how much you get and how long you have to pay back loans. It also may influence how much interest you’re charged in addition to the fees and other stipulations. You should also use this caution if you plan on securing a pawn loan from an online pawn shop. Furthermore, pay special attention to the store’s policy and procedures for transporting your valuables and how payments are expected to made on your loan.
Step 4: Secure A Pawn Loan Learn what to look for before finalizing your loan.
The Most Important Step The next step is getting a loan on the items you want to use as collateral. This step is perhaps the most important part of the pawning process but unfortunately it is often misunderstood. Consequently, this allows unscrupulous dealers to overcharge.
Review the Pawn Ticket Once you’ve agreed on how much you want for you collateral, the pawnbroker will present you a pawn ticket. A pawn ticket is a formal contract that outlines the transaction between you and the pawnbroker. It defines the items pawned, payment terms, due date and any penalties associated with breach of contract. Before signing the pawn ticket, review the following for accuracy: • how much you are borrowing • how much your payments are • how often you are expected to make payments • the total amount plus interest and fees that you owe • the final day that the money is due before you lose your items
Step 5: Repay the Loan Learn how to repay your loan without accruing penalties and fees.
Pay Your Loan to Get Your Items Back You must repay the loan if you want to get the items that you used as collateral returned to you. You should make weekly, biweekly, or monthly payments as stipulated in the terms of the loan. If you are not required to make regular payments, you should pay off the entire loan by the last day allowed by the pawnbroker. If you do not repay the loan, your items will be put up for sale in the pawn store. You will be forced to buy them back at whatever price the pawnbroker charges. You also could risk losing them to other customers. Because of the risk of losing your collateral, it is generally advised that you do not pawn items that are of sentimental value to you. You should avoid taking out a loan if you believe that you might default on it.
Legal Considerations Learn about the laws the regulate the pawn industry.
The 13 Laws of Pawning Pawn loans can be legitimate sources of cash if you do business with a reputable pawnbroker who obeys the 13 federal laws that govern pawn stores. The 13 laws allow federal authorities like the IRS and the U.S. Treasury to oversee these businesses' lending practices.
The 13 Laws of Pawning (cont.) The 13 laws protect your private information and ensure that you are getting a realistic and fair financial transaction that does not put you at a disadvantage of paying it off and regaining your items. These regulations also protect members of the U.S. military from being taken advantage of and losing items because of being unable to pay while on deployment or tour of duty. Pawnbrokers are held to the same lending standards as banks, credit unions, credit card issuers, and other financial institutions. The federal government demands that these businesses adhere to all of the terms outlined in the Fair Credit Reporting Act.
The 13 Laws of Pawning (cont.) Finally, the13 laws that govern the pawn industry outline how customers and pawnbrokers alike can identify possible cases of theft. Suspected incidences of identity and property theft must be reported immediately to the U.S. government. Author’s Note: Pawning is not always an easy process, we at Chapes-JPL make it easy. “We Say Yes, When Banks Say No!” Click & Experience the Difference.
References • Benhayon, L. (n.d.). Pawn Shop Atlanta, GA: We Lend More & Charge Less. Retrieved May 25, 2017, from https://chapesjpl.com/atlanta-pawn-shop / • Durdern, T. (2017, April 21). Top 10 Items Pawn Shops Drool Over (You've Been Warned). Retrieved May 25, 2017, from https:// medium.com/pawned/what-do-pawn-shops-buy-c35f2835cc5c • Pawnbroker. (2017, May 24). Retrieved May 25, 2017, from https:// en.wikipedia.org/wiki/Pawnbroker • What is Pawn Ticket? definition and meaning. (n.d.). Retrieved May 25, 2017, from http://www.investorwords.com/10566/pawn_ticket.html