There are times when you need extra funds, and in that particular scenario, you almost consider every option from asking friends, to bank loan and what not. Pawnbrokers appear pretty helpful during such times. Since pawn brokers deal with our valuable items and give money in exchange to that, it is very much important to make a background check and then select reliable pawnbrokers.
You need to first look at major factors before going ahead and choose pawnbrokers. Basically, you need to assess your need for money and the value of your asset that you are considering to sell or mortgage. Reliable pawnbrokers take everything from expensive metals, jewelry to even electronics.
Given below are some factors that will help you to choose a perfect pawn broker. They are:
Selection of Pawnbroker
- You simply can’t choose any pawnbroker who first comes across, as it is indeed the most important part.
- Shop Reputation: There are a lot of shops in the market, but you really need to do a thorough research before you go ahead with any of them. Take references from friends, the market for reviews and recommendations, you can even search online. It’s very important to compare and plan ahead before selecting any.
- Proper Rates and Policies: Each item kept or sold must have proper guidelines in accordance with laws of the state and also the up to the current price running in the market. Reliable pawn brokers understand such terms and make the customers comfortable.
- Experience: This is a very important factor as you really need to know the experience of pawnbroker. If they have been around for a long period of time they will know their job well.
Getting the Loan
Now, since the whole point is about getting money for your asset, make sure that you get the current applicable rates out of your mortgage or sale.
- Select the Item: No matter what you select either an electronic or jewelry, select it according to your monetary requirements. The loan amount is generally a small fraction of the item’s real value. So take a lot of time in thinking what you are planning to give away!
- Compare prices: Go through the standard prices in case you are giving expensive metals, such as gold or silver or maybe jewelry. Compare these prices with other reliable pawn brokers as well.
- Take a Receipt: The receipt you take against the loan must contain details such as the terms of your loan: fees, expiration date, description of your item, etc. This is how reliable pawn brokers work.
Repaying the Loan
So, there are basically three possible cases in this scenario.
- You repay the loan in the first place and take back your item with all possible documents in the given period of time.
- You fail to repay, and the pawnbroker gets to keep your item according to the signed guidelines.
- You ask for an extension of time without prior guideline notice. Now since there was nothing written beforehand he/she may deny your request for an extension.
You must check these factors beforehand so that there won’t be any issue later on. Also read the guideline carefully and then go ahead to accept it.
Explained Interest Rate
All reliable pawnbrokers have fixed interest rate of interest that is up to the guidelines and the standard rate of the particular thing.
Your pawnbroker should clearly explain each and every type of fee involved in your loan before you finalize the transaction. These terms also should be listed on your loan receipt.
These are some basic requirements of taking a loan with safety from a pawnbroker. Other than that, make sure that the pawnbroker provides you proper confidentiality to your given documents, including the financial statements and loan activity.
