16
Dec

Cash4 Jewelry Now’s Guide: All about Pawnbrokers

Pawnbrokers and pawnshops are getting into the forefront because of the proliferation of pawn shop-related shows on television.  In a way, these shows have revived public interest in pawnshops and gave them a positive image.  There have been several negative connotations about pawnshops in the past, but in truth, there are many credible pawnshops out there that have been operating legally and serving customers for a number of years.  In the Greater New York City area for instance, Metropolitan Pawnbrokers have been serving satisfied clients for over 25 years.  This article, brought to us by Metropolitan’s website cash4 jewelry now, aims to inform readers on the business of pawnshops.

Pawnbrokers have been serving the needs of Americans since the early 19th century, when there was a big surge of immigrants and rural people flocking the big cities of America to look for job opportunities.  During those days, there was a growing demand for factory workers in urban areas, so many low-income wage earning families flocked to the cities.  As a consequence, loans became essential.  The pawnshop business then flourished, especially in New York City. It continued to flourish even through the Civil War years, to the Great Depression.

Today, pawnbrokers are encouraged to be active in the industry and to network with other pawnshops in the country.  Industry organizations gather pawnbrokers to discuss business practices, provide resources and tools to strengthen their business, think of ways to enhance the professional image of the pawnshop industry, and review federal, state and local laws.

Pawn Shops

Today, there are many pawnshops in major cities in America

There are more than 10,000 pawnshops around the country. Many trusted and reliable pawnshops give fair compensation for the personal property pawned by the customer. 85% of pawn shops are independently-owned small businesses or small regional chains.  In fact, pawnshops are the most heavily regulated provider of consumer financial services, governed by more than 15 statutes and regulations.

People are drawn to pawnshops especially in economically-tough situations because they provide immediate relief for emergency cash needs.  It helps them meet sudden financial needs that are not easily served by traditional financial institutions. This is especially helpful for the working class, who subsist from paycheck to paycheck.  Pawnshops do not ask for many documents, just a government-issued identification card.  They do not conduct credit checks, so that makes it easier for an ordinary employee to get money right away. The money loaned from a pawn shop also does not affect an individual’s credit standing.

Pawn Shop

How does a pawnshop work?

According to cash4 jewelry now, there are still some clients who do not seem to understand how to deal with pawnshops.  Basically, people go to pawnshops, taking their personal items to surrender to the pawnshop.  The surrendered personal item will be used by the pawnshop as collateral in exchange for a modest loan.  What personal item can be brought to a pawnshop?  In this case, it depends on what the specific pawnshop accepts as collateral.  There are some pawnshops that accept anything from gold and silver coins, silverware, antique items, and many more.

However, according to cash4 jewelry now, there are some pawnshops that only accept jewelry items such as watches, rings, earrings, necklaces, gold pins or brooches, bracelets, and diamonds.  Pawnshops are also governed by laws and regulations.  Make sure that the pawnshop that you will transact with is duly licensed and complies with laws such as Truth in Lending Act, Equal Credit Opportunity Act, Patriot Act, Fair Credit Reporting Act, and local ordinances.

Once you have made the pawn agreement with the pawnbroker, make sure that they give you a pawn ticket that includes valuable information about the terms of agreement. It should include a description of the item/s pawned, the total amount lent, the rate of interest charged and the loan period.  It should be duly signed by both parties.

Some pawnshops also accept the valuable item if the customer is selling them. Yes, pawnbrokers are also active buyers and sellers of valuable items.  Some pawnshops are also retail stores where clients can purchase unique, pre-loved items. However, pawn and collateral loans are still the core of a pawnbroker’s business.

In choosing a pawnshop, you should select a reliable establishment that has been in the business for many years and with a stable and growing clientele.  Metropolitan Pawnshop, with branches in Richmond Hill and Woodhaven New York, is well-known in the industry for its top-notch customer service and quality merchandise.  According to cash4 jewelry now, they even provide mail service for those who are unable to physically go the shop.  Called the Gold Kit shipping process, they provide free shipping kits for transporting the valuable item to be appraised and pawned.  It is fully insured and contains one shipping box, customer inventory and receipt form, pre-addressed mailing label, and US Postal Service mail tracking label.

6
Dec

To Pawn or Not To Pawn: Know Your Options When You Visit Site

We all know how pawn shops work, if you visit site of a pawn shop, you would know that the basic process involves you presenting an item of interest to a pawnbroker and then they would loan you money depending on the value of the item you want to pawn. It might sound easy, but the fact that 20% of people who loan items to a pawn shop never get their items back may make you think whether pawning an item is the right choice for you.

Literally anything that has monetary value can be pawned, from clothing to household goods, and even tools can be sent to a pawn shop. If you decide to pawn an item, remember that regardless if you are able to pay or not, it will not affect your credit score and it will not be looked into by financial institutions.

There are also no documentations or legal requirements that you need to bring to a pawn shop, except probably a government ID that you are going to present to the pawnbroker when you go to one. Even though pawning an item is easy and has almost no consequence, you should still think it through before finalizing any transaction.

Pawn Shops

Here are just some of the things that you should consider before going to a pawn shop:

  • What is the value of your item? If you ever Visit Major Pawn Website of a pawn shop before, you would know that although they would accept almost anything, there are items that they prefer more than others. In addition, if you are unable to pay the loan back to the pawn broker, then you will lose your item.  In this case, is your item replaceable? If it is, perhaps it’s worth taking the risk for.  However, if it is something that has sentimental value such as a family heirloom, you might want to give careful consideration before finalizing your decision.
  • Would you be able to pay the loan back in time? Pawning an item might do you good if you know that you can repay the loan right away. However, if your financial situation might not allow you to pay a loan right away, then you might want to think about selling than loaning. The interest that a pawnshop will have for an item tends to increase if there is a contract enforced.

With these in mind, if you are not sure whether to go with a pawn shop or not, remember that there are other loaning options you can take.

Ask your bank for overdraft protection

An overdraft protection can give you quick cash when you need it. However, just like with pawning an item, it comes with its own pros and cons. Before going with this option, consider the fees that you will have to pay for overdrawn balances compared to the interest you would need to pay for a loan.

Pawn Shop

Borrowing from friends and relatives

This can be a very good option since you already know each other. The loan will be made in good faith and you would not need to fill in any paperwork. You might need to pay interest, although this is usually lower than what pawn shops and other financial institutions would impose. However, keep in mind that a lot of personal relationships have been tarnished when they started talking about money.  Make sure that you do not break the trust of your friend or relative by paying the money back when you have it.

Shop around

We definitely recommend that you visit site of pawn shops and compare their interest rates. With so many pawn shops offering business, there is bound to be one that would be ideal for your situation. Remember to visit site of each pawn shop and decide which one is best for you by analysing what they have to offer.

We are all looking for a way to make ends meet financially. However, when we get into rough patches, it is good to know that we will never run out of options to take in order to get us out of difficult ordeals. Take time to think about pawning and make sure you get the best deal out of your experience when you decide to finalize your transaction.