In recent times of economic depression and lack of work many people in the UK are making use of pawn stores to ease their money worries and generate some extra cash. There also many people unable to secure loans from their banks due to having bad credit, and those who know the risks of “payday loans” and don’t wish to end up in massive debt. Pawning your items is a much better option and very useful as anyone can do it and there are no debts involved.
What do they do?
They allow you to sell your unwanted belongings (the more valuable, the better) such as jewellery, electronics, computer games and so on for cash. The stores then allow you to buy back your items in 28 days, making it in effect a small loan. The money is of course yours and there is no obligation to return and buy back your items, which will eventually be sold to other customers.
How does it work?
You bring in your item and after testing and appraisal they offer you amount of cash based on valuation of the item. Like selling a car, if your item is clean in good condition with original packaging the broker will make an offer then keep the item for a period until you repay them, with any additional fees.
How much money will I get?
You will get a percentage of the item’s retail value. The pawnbroker considers the future resale value, the demand for the item, the cost of storage and security. The payment you get could be any amount depending on the value of the item you wish to pawn, its condition less any repairs needed to facilitate re-sale, after testing and appraisal the broker will offer you amount of cash based on valuation of the item. Like selling a car, if your item is clean in good condition with original packaging it will attract a higher value.
If I want to buy my item back, what kind of fees or interest rates will be involved?
- It will depend on the broker, but the rates are far lower than bank overdraft fees or credit card late payment fees, making this a much better way of obtaining extra money.
What are the requirements?
- You simply need an item of high re-sale value and valid photographic ID. You do not need a bank account and no credit check is performed against you.
What happens if I don’t buy my item back?
- The pawnbroker will keep your item and sell it to other customers. There is no obligation on you and there are no consequences for not buying your item back.
Pawnbrokers have provided a safety net to families and individuals for years and are present on many high streets in Britain. Their help is vital to many who need cash temporarily or permanently, but understandably don’t wish to get a loan, worsen their credit score, face repayment fees or overdraft fees.