There are financial emergencies that pop up now and then that need solutions from outside the box, and that’s where you may turn to pawn your jewelry. Pawning your jewelry can be an option for getting a quick sum of cash in a hurry. However, before you head to the pawn, there are a few things you’ll want to consider first.
Before trying to pawn anything, especially jewelry, you should have a solid idea of its worth. Visit a local jeweler or independent appraiser for an estimate and be sure you have it cleaned well beforehand. Remember that a pawn shop is likely to only offer you a percentage of the appraised value, often to offset their risk in lending to you. They also need to account for the profit margin, potential resale value, and even the space it’s going to take to store it until it sells.
When you pawn your jewelry, you’ll receive a loan for part of its value. Look over the loan terms in detail, and note important things like the interest rate, repayment period, payment schedule, and any fees or penalties. Ensure you ask for a clear explanation of anything you don’t understand.
Just like any other loan, you should take the time to compare the offers from several pawn shops. Each one can differ in the scope of its clientele, loan terms, and even reputation. Check online reviews and go with one that looks like it’s the most reliable overall.
Most pawn loans can be negotiated to a point, and many pawn shops will base their initial offer on starting a negotiation. Keep the value of the jewelry in mind and use it as leverage during negotiations. If you have a certificate of appraisal document or something similar, bring it along.
To lend you money, your pawn lender will need to have proper, valid identification to complete the transaction. This means a currently valid, government-issued ID, like a passport or driver’s license. Any reputable pawn lender will decline to do any business with someone that cannot provide proper ID.
Make sure that the pawn shop you choose has sufficient security measures to keep your valuables protected. Don’t be afraid to ask a member of management about the storage methods, insurance coverage, and security they use to keep your collateral safe.
Before you ever walk through a pawn shop door, you should have a plan in place for how you’re going to repay that money. Too many people run out to borrow money without having a plan for how they’re going to meet that financial obligation. Failing to have an effective plan in place could mean you lose your jewelry to default and resale.
Even though pawn loans can be a quick and easy way to get money, you should still take time to consider what you really need and be sure to consider what we discussed here. Even though you’re looking for short-term cash, you don’t have to make poor decisions under pressure. If you have any other questions or want to get started with an online loan, reach out to Lending Bear today. Get our best offer up front so you won’t have to worry about haggling.