Pawn shops accept a variety of items in exchange for money. For some people, going to a pawnbroker for the first time is a novel experience that may come with some apprehension. However, they’re highly regulated and with professionals who engage in transparent customer transactions. If you’re not familiar with the process, below are a few things to know before stepping into the shop.

How a Pawn Shop Transaction Works

Pawn shops offer collateral-based loans and accept anything with value—from gold jewelry to electronic devices—that will serve as security. They will assess an item’s worth and give a loan amount based on a percentage of its market or resale value. Afterward, they will hand out a pawn ticket indicating the loan amount with interest, expiration date, item description, and other fees. On the due date, you can buy back your item by paying the full loan amount or choose to forfeit by defaulting.

What You Should and Shouldn’t Do

When pawning, bring a valid ID like a license or passport with you so that the pawnbrokers can verify who you are—even if they don’t conduct credit checks. Take the item you want to pawn with you as well, so you can receive a fair value estimate for your item. Avoid taking outdated or bulky items, including records, furniture, and books. Jewelry, coins, musical instruments, and the latest gadgets are preferable since they can fetch more value. Never lose your pawn ticket or forget the expiration or due date—you’ll pay more for such oversight on your part.  

Why Choose Pawn Shops Over Credit Institutions

Like traditional credit institutions, pawn shops extend loans with interest rates. The rates, otherwise known as finance charges, vary according to state laws. In some states, pawnbrokers can impose a 20% service charge on top of monthly rates. Even with the additional rates, pawn shops may offer a better deal than other lending sources. Credit cards and personal loans offer lower rates and longer terms; however, late payments and defaulting will negatively affect your credit scores. Pawning, on the other hand, won’t leave a red mark on your record since your loan is considered paid in full because of the collateral.

Pawn shops accept almost anything of value and offer reasonable appraisals for your item. Trust the professionals at Waipahu-Hawaii Pawn to give the right value for your valuables. Located in Waipahu, HI, they have been the trusted pawnbroker for residents on the island of Oahu for more than two decades. For fast cash, call (808) 671-6555 or visit their website for more information on their services.