For centuries now, people tend to resort in pawning items in times of great need of cash as soon as possible. Pawning is simply leaving an item to the pawnbroker for an agreed period of time in exchange for immediate cash. If the item is not repaid at the period of time agreed upon, the pawnbroker can now keep or resell the item unless there is a negotiation for an extension.
Pawning offers a lot of advantages which is the reason why pawning is still very popular nowadays. However, there are still a lot of things to consider before one decides to pawn an item.
1. Know what pawning is and how pawn shops work. The process of pawning an item to get a cash loan is a simple process but still, one must know that in spite of the benefits pawning has, and it also has risks. We in Metropolitan Pawnbrokers can assure you that we will walk you through the process. We will make sure that you will have complete understanding of the terms of agreements of the loan.
2. Assess the shop. First of all, assess the credibility of the shop. Research about the pawn shop. Determine if they follow terms of agreement. Look for an established shop. Metropolitan Pawn brokers have been in the business for almost twenty five years serving the New York Metropolitan area. Second, assess the security of the location. Ask where your item will be kept. The item must be kept in secure locations such as vaults.
3. Choose what item you wish to pawn carefully. The cash loan you will get will be based upon the value of the item. Furthermore, only a portion of the true value of the item will be given. Almost anything of value from gadgets to jewelleries can be accepted. The item has to be transferable and can be resold. We in Metropolitan Pawnbrokers accept all kinds of jewellery may it be made of diamond, gold or silver. We employ trained employees so we assure you that your item will be assessed properly and carefully.
Another thing you must consider when choosing an item is its sentimental value. If the item is not repaid in the agreed period of time and no extension is given, the pawnbroker has the right to keep and resell the item pawned. The individual must completely understand the risk of this – that he/she may not be able to get the item back- before pawning an item with great sentimental value such as a wedding ring.
4. Another thing to consider is the monthly interest rates. The individual must consider if he/she is willing and able to pay the monthly interest rate aside from the original cash loan given. Some pawn shops would have extremely high monthly interest rates which would burden the individual later. Make sure that the interest rate is reasonable. Research about different interest rates of shops in order to compare. We at Metropolitan Pawnbrokers has 3% monthly interest rates.
5. Aside from the monthly interest rate, also consider the period of time wherein the loan must be repaid. Some shops would only offer loans for a month and repaying the loan would be impossible for some. The longer period of time, the higher the chance you will be able to pay the loan. We in Metropolitan Pawnbrokers offers the loan for four months which would quite be enough for individuals to save up and pay the loan. In case the four months are not enough, we accept extensions once the interests are paid. We send letters in order to notify and remind clients about their items and the time left to repay the item.
Overall, pawning an item is easy, simple and convenient – as long as you transact with a reliable company. However, with that in mind, one still needs to consider these things in order to feel confident about the transaction.