When times are tough, may people seek short-term financial solutions to get them over a bump. In such instances, visiting a pawn shop is often an effective solution. However, many people who have never been to one are unsure of the legality, reliability, and security of such places. If you’re considering visiting a pawnbroker, here are a few things to keep in mind. 

What You Need to Know About Pawn Shops

1. They’re Reliable

TV and movies often portray pawnbrokers in a negative light, but that stereotype is far from the truth. Pawn shops must comply with dozens of state and federal regulations to remain open. Most are clean, safe, well-lit stores that offer good prices on everything from jewelry and coins to guns and artwork.

2. Pawnbrokers Buy, Sell, & Provide Loans

In addition to selling quality used items at affordable prices, pawn shops also offer quick cash for your gold, silver, jewelry, appliances, and other household items. Moreover, if you don't wish to part with an item permanently, you can "pawn" it — or use it as collateral for a loan — instead. If you remain current with your payback schedule, you can retrieve the item once the loan is repaid. If you default, the pawnbroker will keep your collateral and put it up for sale.

3. Your Pawn Ticket Is Important

If you intend to repay the loan in full and collect your collateral item, keep your pawn ticket in a safe place. Without it, you may not be able to redeem your item. The pawn ticket contains a description of your item, along with the expiration date and any applicable fees.

4. Interest Rates Are Capped

The finance charge you must pay for a collateralized loan through a pawn shop varies from location to location. However, North Carolina law caps the amount at 2% per month, for a yearly maximum of 24%. However, pawnbrokers can add on additional fees — including handling, appraisal, storage, and insurance fees. Before signing for a loan, ask your pawnbroker to explain the precise repayment amount.

If you’re in the market for great prices on tools, DVDs, rare coins, estate jewelry, bullion, guns, or even reliable jewelry repair, stop by Coins & Stuff, a trusted pawnbroker in High Point, NC. They've been serving customers throughout Guilford County since 1980, and TV8 has voted their prices the best in the Piedmont Triad region. Visit their website for location details and store hours, or call (336) 885-5323 to ask a friendly team member about pricing and item availability.