When you’re strapped for cash, head to a pawnshop where you can exchange items of value for a short-term loan. Before you exchange your valuables for cash, here’s what you should know about these shops, how the lending process works, and what items are best to pawn. 

A Brief Guide to Pawnshops

1. How do they work?

Pawnshops offer opportunities to get short-term loans without a credit check or bank account. If you have an item of value—jewelry, electronics, or appliances, for example—you can use it as collateral to secure a short-term loan. The shop will give you cash and hold your property until you repay the loan.

Review the terms of the loan to determine how much time you have to repay the amount you borrow. A loan is usually due within one to four months. Be prepared to confirm that the property you pawn is your own. You’ll also be asked to show government-issued identification and may be fingerprinted.

2. What can I pawn?

The key to successful pawning is finding items of value. In addition to jewelry and gems, collectible coins are often pawned. Other high-value property includes tools, smartphones and tablets, and sports equipment. Avoid attempting to pawn outdated possessions or appliances that don’t work.

3. What happens to my pawned property?

If you can’t or don’t want to repay the loan within the stipulated time frame, then the shop takes possession of your valuable collateral and will try to sell it at a price higher than the loan.

4. Is there an interest rate?

State regulations determine the interest rate charged by pawnshops. Some states set a specific interest rate; others establish a maximum rate. Rates are often competitive with those for other loans and may hover around 20 percent.

5. Can I buy from a pawnshop?

Yes, you can purchase items from a pawnshop. Any piece of property used as collateral for a loan that is not picked up is for sale. Returns typically aren’t accepted, so shop cautiously. However, an experienced bargain hunter can score significant savings by shopping at pawnshops.

If you’re ready to pawn an item of value, visit Moore’s Pawn & Furniture, which offers cash loans up to $50,000 for gold. Serving the Lincoln, NE, area, for 15 years, this business is certified by the National Pawnbrokers Association. It features a furniture store and a 20,000-square-foot showroom with jewelry, electronics, tools, and much more. Call (402) 477-5116 for more information, or visit their website to sample their inventory.