Banks and traditional lenders can’t always help you when you need fast cash, so pawnshops have become a popular solution. It’s important to know how this option works if you intend to acquire a loan quickly. If you’re a first-time pawner with a lot of questions, use this guide to get informed.

What to Know About Pawning

How does pawning work?

Pawnshops give loans in exchange for collateral of equal value. You can pawn almost anything, but the shop has to be willing to take it. At the end of the transaction, you’ll leave with money, and the shop will hold onto your item. To reclaim your valuable, simply pay back the loaned money by the agreed-upon date. If the payment isn’t fulfilled, the pawnshop keeps your item.

What loan amount will I receive?

Since the loan amount is dependent on the item’s value, the pawnshop will assess the object first. Many factors impact value, like condition and age. The assessor will use their industry knowledge and a large database of similar objects to appraise your item.

What do I need to pawn an item?

Most shops only require a driver’s license to pawn something. Bring any special documentation that can authenticate the item’s brand, production date, material, and other defining aspects that may increase its value. Examples of these documents include certificates for autographs and memorabilia and professional grading cards for rare coins. Having paperwork will help reinforce the value of the item so that you get the best price.

Can the pawnshop sell my item?

No. The shop holds your item in trust until you pay back the loan by the agreed-upon date. If not, the pawnshop can sell your valuable to cover the cost of the loan that wasn’t returned.

If you need fast cash, head to A Happy Pawn in Chinatown on Oahu. This pawnshop has served the community since 1988, and it’s accredited by the Better Business Bureau®. For more information about their loans, visit the website or call (808) 383-5253.