With the turbulence of the economy as of late, it’s quite likely that all of us have run into a situation where we could use a small, quick loan. One way to go about receiving a loan quickly is to go through your local pawnshop. Here are some tips on taking a loan out from a pawnshop.
1) Bring Collateral
To take out a loan from a pawn shop, you must leave an item of value with the shop that they can sell, in the event that you do not pay back your loan on time. Anything of value can be used–musical instruments, jewelry, and consumer electronics equipment such as TVs and laptops are examples of good collateral. Normally, the staff at a pawn shop should be able to verify whether or not your collateral is acceptable. As the pawn shop will need to price the item as though it’s going to sell (even though you have full intention of paying the loan), have the item professionally appraised beforehand, so that you know how much you can expect to receive for the item.
2) Verify The Reputation of The Pawn Shop
Not all pawn shops are created equal. Read reviews from customers who have taken out loans from the shop in the past, and speak with the staff at the store regarding their loan process. The length of the loan’s payback term, the amount of interest, and even where your item will be kept while they hold it are all valuable questions to ask. Going with a less reputable pawn shop could result in heartbreak for you down the road!
3) Get a Copy of Your Agreement
Discuss the terms of the loan with the staff at the pawnshop, and make sure that you get a copy in writing. While this serves an obvious purpose (a paper trail of your agreement that will make the agreement easier to conclude once you’ve paid off the loan), it will also serve as a reminder of the loan to you, keeping it top of mind when you have the cash required to pay it off. A reputable pawn shop will provide this to you as they will need a copy for their own records.
If you’re in need of a loan, get in touch with us here at McBride Music & Pawn– we’d be happy to help!
Image Credit: Flickr Creative Commons