Whether you have to fix a car problem, pay an unexpected medical bill or pay rent, going to a bank to get a loan isn’t an easy option. If you don’t have perfect credit, a bank loan will be an even harder option. If you’re in need of some fast cash, then one of the best options would be a pawn shop.
In fact, pawning or selling valuable items to a pawn shop is one of the easiest options you have for getting some money and this is why so many households in America turn to pawn shops when they need financial assistance.
However, the question is – should you be selling the item outright, or should you pawn it? Pawning vs selling seems similar but you will find some pros and cons behind each one. What it all boils down to are your needs.
Selling vs. Pawning
It is important that you have an understanding of the differences between selling and pawning. Both selling and pawning is referring to surrendering an item for money. However, when you sell the item, it means you are handing over the ownership to the merchandise.
If you were to pawn the item, this means you will be able to get the item back, as long as you are able to return the amount (along with the fees) that you borrowed.
Thinking about it, it may feel as if pawning is the best option. However, if you dig a little deeper, you will find out that there are various other factors to think about before you make your choice.
Pawning Your Items
As we stated in the paragraph above, when you pawn an item, this means you are giving up the item in exchange for money, but you will be able to get it back as long as you make your payment.
Starting out, pawn stores don’t accept every type of item. Most common items a pawn shop will accept include genuine jewelry, diamonds, and luxury watches. You may also find some that accept video game consoles, guns, electronic devices, musical instruments, and laptops.
Pawning isn’t going to get you a lot of money. Pawn stores look at the full value of the item you’re pawning and lend you a small percentage of that. When you pay for the item to get it back, you will have to deal with fees and interest. However, the benefit of pawning is the fact that you can get your item back.
The biggest benefit of selling that item is the fact that you can get a higher amount of money for it. If you have a ring that is worth $1000 and you choose to pawn it, you may only be able to get $300 for it.
However, if you choose to sell it, you could get up to $800. If you think about it, selling would be the better choice if you don’t feel like bothering with a loan and don’t mind giving the item up.
If you’re in need of quick money, then you can go to a pawn shop. Just make sure you know whether or not you plan on pawning or selling the item.