A pawnshop can be a good place to get a few extra dollars to pay a bill, buy a gift, or maybe just put some gas in your car. These steps will explain what happens in a pawn shop, and how to make it work for you.
1. Decide on the item you want to pawn, and the amount of money you are looking to get out of it. Tools, electronics, guns, and jewelry are all common items. They do need to be in good, safe, working condition however, or you won't get very much money for them, or none at all. If you don't re-pay the loan (or "pawn") for an item, the pawn shop will put it in their store to try and sell it for more money than they loaned you. This is one way they make money. They can't sell broken or nonworking items, so it doesn't pay for them to loan you money on them. For this same reason, they can't give you what the item is truly worth either, because if they had to sell it they wouldn't make any money.
Take the item to the pawn shop, and tell them whether you want to sell it to them, or "get a loan on it." ("pawn" it) You can also call the pawn shop first to see if they are even interested in looking at it. Sometimes, if a pawn shop already has lots of the item you are trying to pawn, they may not take it. This can happen with large tools, such as extension ladders, because they may not have room to store any more. If at all possible, clean the item up to make it look good, and make sure you can show them that it works. If the item runs on gasoline, make sure it has a little gas in it. If the item needs batteries, make sure they are charged.
When they ask, tell the pawn shop how much money you would like to get for the item. You should be direct and confident, but also polite and reasonable. "I need to get as close to $50 as I can" is much better than "You better give me $50 or I'm leaving!"." The interest rate in California is controlled by the state and in many cases depending on the amount can be lower than a credit card and you have 4 months before any payment is due. If you don't repay the pawn, they will have to sell the item to get their money back.
When you've agreed on a price, fill out the paperwork and get your money.The paperwork for pawning or selling something will require a state-issued ID and you will have to put your thumbprint on the back of the receipt. This is for security reasons, to help find stolen items that have been pawned. You are now on your way with a little extra cash! or next to no cash what so ever if you want cash from a pawn shop then you need to get gold or high end speakers
- 5Come back within the agreed upon time to repay the loan, plus interest, and get your item back. You will have one month to repay the pawn or renew it. If you are unable to pay the entire amount, then you can pay only the interest, and "renew" the loan for another month. At the end of that time you can pay off the loan and get your item, or renew it again. Most pawn shops do not allow you to go on renewing the loan indefinitely, at some point you must either pay in full or lose the item. The usual amount of time for this is about 3 months. Just remember that if you pay the interest and renew it, when you come back in another month, you will still owe interest for the second month. If you do this too many times, you are adding a considerable amount of extra money to get your item. It pays off to get the item at the end of the first month!
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