While people see pawn shops every day, not everyone understands the difference between pawning and selling. Many people in Chicago don’t know there is a difference between pawning and selling their items! Some even wonder, “what is a pawn shop?”. In many ways, selling and pawning are similar, but there is a big difference. When you pawn something, you still own that item. The best pawn shops are the ones where pawning is easy and affordable. When you know more about what a pawn shop does, you can utilize one yourself!
What is a Pawn Shop?
A pawn shop is actually much more like a bank. When you pawn something, you use the item as collateral to receive a loan from the pawn shop. This avoids the need for checking your credit for a loan. All you need to get a loan from a pawn shop is a valuable item and a valid ID. For example, people looking for a Chicago pawn shop will come to the Chicago Super Pawn and bring in a Rolex to pawn. We can get them a loan on the spot!
Quoting a Price
When you first bring in your item, the pawnbroker will give it an evaluation. Appraising an item for its value can be somewhat complicated, especially for items with more value. Your broker will research the item and find out how much it is worth in today’s market. If you have jewelry, they will test the value of the stones and the metals using equipment and chemicals. Finding out how much your jewelry is worth beforehand may be useful to you. For example, producing a jeweler’s appraisal for your items could help. The condition of your item is also taken into consideration. A broken or damaged item is always worth less than one in good condition. Once an appraisal is made, the broker will let you know how much cash they will offer for your item.
How Does Pawning Work?
Are you in Chicago and in need of some quick cash? Of course, you can always sell your item to a pawn shop. The appraisal will help the pawnbroker decide how much they will offer, then you can make the decision of if you will sell your item for that price or not. Generally, selling an item will be at a lower price so the pawn shop can make a profit if they sell the item. If you choose to pawn your item, you will have the opportunity to take out a loan and use the item as collateral. You will receive cash for the item, and you have a grace period to pay back the loan. This is the difference between pawning and selling! While your item has been pawned, you still own it, so the pawnbroker will take good care of it.
Generally, you will have about 30 days to pay back the loan. Then you will have another 30 days before the pawn shop will sell your item. You could technically still have the opportunity to buy your item from the pawn shop itself when it goes up for sale, but anyone could purchase it at that time. Sometimes you can get a renewal, where you only pay the interest accrued on the loan, and then your loan period will start over. This depends on the item and on the pawnbroker. Here at Chicago Super Pawn, we will send you messages when it is time to pay. We also will prorate your payment. We think it is fair to charge you for the time that you had a loan, not the full month.
Often people pawn to be able to have emergency cash. Sometimes a pay period lines up poorly with bills, or an unexpected expense comes up, like needing medicine. Sometimes people use pawn shops strategically to purchase another item that would be time sensitive, like a vehicle. Then, they can come back and pay off the pawn loan in the time they need it. Credit is so important in today’s world, so pawn shops are one of the last places you can get a loan without checking your credit. Some people have bad credit as a result of unfortunate circumstances. Maybe they are young and haven’t built up their credit much yet. This is why the best Chicago pawn shops offer good loans that won’t destroy your wallet, and help you get the cash you need. But most importantly, you don’t need to wait weeks for a loan approval. We know that life’s emergencies do not wait, so why should you need to?
When someone sells their item to the pawn shop, it then goes up for sale within the shop. People can get used items for a good price at a pawn shop! You can buy or sell things like video game consoles, necklaces, watches, rings, art, musical instruments, vintage items, and more! If you sell your item, the pawn shop will put it up for resale shortly afterwards in their shop. You can also look into trading. You may have some items you’d like to upgrade, and you may find a great deal on another piece. You can see what your item is worth and look into negotiating a trade with the pawnbroker. This is another option separate from pawning and selling.
What Makes a Pawn Shop Great?
The best Chicago pawn shops are ones that can offer you a great deal! The difference between pawning and selling doesn’t matter if you aren’t able to get a good deal for either. Finding a pawn shop that will be flexible, trustworthy, and safe is very important. If you are seeking the best pawn shop near you, go in and take a look at what they have to offer, and speak with the pawnbrokers. You may want to ask about some of their policies and contracts before you bring in your item. Weigh your options! If you feel like you aren’t getting the value you are seeking out of your item, try another shop. Know the value of your item, and you may be able to find the deal you are hoping for! The best pawn shop won’t try to cheat you, but they want to help you get the best value and be able to have cash in hand for your item. They also want you to be able to safely pay the pawn loan and get your item back.
Check Out Pawn Shops
Even if you aren’t looking for emergency cash, pay a visit if you are in Chicago! Pawn shops are great places to find a good deal. Knowing the difference between pawning and selling will help you to be able to utilize a pawn shop for your loan needs.