We all know the heartbreaking feeling of having to sell your belongings in exchange for cash. Some people choose to pawn smartphones, jewelry, and even real estate properties for extra money. Pawning might be among your last-recourse action, as you don’t really want to part with your valuables. But if you need instant cash, pawnshops could be your only option.
Steps to pawning
Sometimes, you might find yourself short of cash because of never-ending bills and unexpected expenses. Pawning could be a better option than asking for money from a family member or a friend. It’s also a more accessible lending service than banks and other financial institutions.
Before pawning your smartphone or jewelry for extra cash, consider important things.
Decide what to pawn
First, decide whether you bring your jewelry or your smartphone to a pawning service. Pawning can be tricky because you need to have your items appraised to get a quote for a particular item.
Once you’ve decided on your item for pawning, find a reputable pawn shop near you. If you have an emergency, you might want to check if there are 24-hour pawnshops in your location.
The staff will first ask for identification at the pawnshop, including a photo ID and, sometimes, proof of residence, such as a utility bill. They will also want to know how much money you want to get for your items before appraising them.
Check if the pawnshop accepts smartphones
People go to a smartphone shop to buy the latest phone releases. But at some point, some of them end up pawning their gadgets due to financial constraints. Smartphones are popular pawnable items since they usually have a high resell rate.
Not all pawnshops accept smartphones, but some take them in exchange for cash. Before pawning smartphones, check if the pawnshop accepts such items to avoid wasting time trying to process the transaction.
Clean the item before pawning
Make sure the item you’re pawning is in good condition before going to a pawnshop. You cannot expect to get much in pawning a broken smartphone. However, you can do as much as wiping the phone exteriors and making it look brand-new.
As long as the item looks good and functions well enough, you can do business with your chosen pawnshop. Bring all the relevant documents – like proof of purchase or manuals – if the pawnshop personnel asks for them.
You could also include all the accessories, such as the original box, headphones, and charger. You can sell the phone at a higher price if you have the complete package. It would also be better to know the smartphone’s specs, including the storage capacity and model.
Set realistic expectations
Is there a market for the smartphone you are pawning? If yes, you can get a good amount in exchange for the item. Otherwise, you cannot expect much of a good offer if the thing is not in high demand. Choosing a good pawnshop is important to get the right value for your selling item.
Know how a pawnshop works
The pawnshop industry has existed for many years to cater to people’s financial woes. For starters, pawnshops accept items in exchange for a cash loan that you need to repay with interest in a given period. If you don’t pay the loaned amount in time, the pawnshop has the right to resell the item.
When you bring an item to the pawnshop, you either pawn it or sell it. You also have to understand the item’s value before going to the pawnshop. If you can repay the loan on time, you won’t have to face penalty charges for late payments.
Check feedback from customers
A pawnshop trusted and vouched for by previous and current customers can be a helpful deciding factor for you. Check the pawnshop’s social media pages, online reviews, and feedback from family or friends. It would be best if you also researched the item’s market price to understand the amount of money you may be able to get.
Make sure the pawnshop is legit
A trusted pawnshop should comply with local and national laws. You must have the assurance you are transacting with a licensed pawnshop that can safely guard your items against theft or any other type of damage. The longer the pawnshop has been in operation, the more trustworthy its business is. Then do your part, as well. Make sure to inform the pawnshop if your item has any defects.
Finding a Good Pawnshop
Going to a pawn shop can be a good solution for your instant cash needs. Before that, make sure you understand how a pawnshop works and how you can make the most money out of pawning your item. The abovementioned tips can help you find a trusted pawnshop and receive the quality service you need.