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7 Common Questions about How Pawnshops Operate

As the saying goes, a good magician never shares his secret. In most cases, it’s all full of smoke and mirrors, with a big pay off at the end. The same can’t be said for pawnshops though. Pawnshops have a set of rules and policies to follow, each one put in place in order to make sure that, unlike magic tricks, there are no sleight of hand, but instead, great deals and value between the pawner and pawnbroker. The goal for both parties is to attain a win-win situation at the end. In such case, many are still intrigued and unaware of the process that happens within the pawnshop, many questions which were left unanswered, until now.

Here are 7 common questions about how pawnshops operate:

1) What are pawnshops for?

Want to earn a few extra cash? You may just head over to your nearest pawnshop, just make sure that the items you’d bring are in good condition. You may see pawnshops as an establishment to lend you cash, in a way, it is. However, unlike banks, pawnshops would require you to leave behind a valuable item, may it be jewelry, a gadget, etc., after which, the pawnshop will hold onto that item. Only after the loaned amount has been paid in full could you get your valuable/s back.

2) I can get a loan from places other than pawnshops, so why go to a pawnshop then?

When you say other places, you may have been referring to banks. It sounds logical at first mention, but remember, banks wouldn’t often take time to even bother lending you a small amount. There are a lot of paperwork that goes into loaning from a bank, not to mention, the hassle that you’d have to go through in order to even proceed with each process. Pawnshops offer something that banks don’t – convenience. Pawnbrokers would just analyze the item to be pawned, and then, you’re all set to receive the amount (the exact value would depend on the condition of the item).

3) You mentioned no paperwork, so what are the requirements then?

Two main things: A valid ID and the item in question. Pawnshops wouldn’t require any other heavy paper load. Just as long as you’re honest about the value of the item and you have a clear ID at hand, you’re all set to push through with the deal.

4) What can I pawn?

Jewelry is at the top of the list, but other items such as gadgets and a few select appliances are also accepted. As long as they’re not damaged and are still functional, you can bet that you’ll receive a good appraisal for them. Pawnbrokers are analytic, but not very picky, just as long as the items in question are qualified according to the rules and regulations of the pawnshop, then you’re good to go.

5) What are the benchmarks of indicating my item’s value?

There are a few important factors to be considered in doing this. For a better understanding, we may also see these factors in question form:
• What is the condition of the item?
• What is its current market value?
• What is the cost of storing/holding onto the item?
• How big is its potential to be sold?

Some experienced pawnbrokers may determine these factors upon witnessing the item firsthand, though in most cases, they’d do further digging, just to make sure that you’ll get a fair amount in return.

6) What are the offered lengths of payment?

A standard practice nowadays is to hold onto the item for at least 30 to 90 days, it would all depend on the agreement between pawner and pawnbroker. In most cases, policies are to be followed, so the pawnbroker would dictate the length of the payment period. No worries though, as you wouldn’t be given any unfair length, depending on the value of your item. Take note that you can renew the loan period (with a fair amount of interest in exchange). If you ever reach the point of not being able to pay back the loan at all, no worries, as the pawnshop wouldn’t even come after you; they will just keep the item or auction them off.

7) Are pawnshops secure?

Yes, they are. Most pawnshops are situated within re-enforced establishments, usually offering a safe place for you to transact with the pawnbroker. They are well-secured (CCTV cameras, security guards, etc.) and adhere to the law and regulation of proper pawning business practices. You wouldn’t have to worry about scams and unfair deals, just as long as you transact within the premises of the pawnshop, and with well-ID’ed and uniformed personnel.

With all of that being said, you may be looking for a pawn shop that would provide you with the most honest and highest appraisal possible. No worries, as Cebuana Lhuillier has got your back. With their Pawning Service you can never go short in any amount, as they accept an array of items, from jewelry to gadgets, as collaterals. They also lead the pawning industry by offering safety and the highest appraisal rate in the industry with its close to 2,500 branches nationwide. Visit your nearest Cebuana Lhuillier branch now – we assure a fast, easy and secure transaction.

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