There must have been times when you wanted some extra money during an emergency and may have considered options such as pawnbrokers or other sources. Now, there may be different ways to get access to easy money, but the best option for you is a pawnbroker. Now if you go to reputed pawnbrokers, there are two things which you can do. If you need a loan, you need to keep something precious or valuable to the pawnbroker for security. But the rate of interest might be more than the local street banks. The other thing you can do is to sell your valuable belongings such as gold jewelry or any antique furniture or possession.
Now Let’s Have A Closer Look at How Do They Work?
The rates of interest might be higher than other street banks, but again they’re comparatively cheaper than any payday lender. The reputed pawnbrokers are also supposed to show you the daily or the monthly interest rates and even the annual percentage rate of charge. They work in a very simple manner; firstly, they’ll value the item which would be given to you. Now all you have to do is to shop around carefully and find the most competitive rates and then go to them and get the money.
Now you’ll be asked to pay the whole amount at once with interest. No installments will be accepted. If you need some time extra in order to return the money, you might ask your broker and he or she might make adjustments with the terms. But you should also keep in mind that the broker might also refuse to this elongation of time.
What Are the Things You Can Pawn?
There are no specific things that you can pawn, anything which can be resold without losing a lot of its actual value could be pawned. It could be your gold jewelry to antiques and much more. Some people have even pawned their designer bags in exchange for some cash. People even pawn their exotic and vintage collection of cars and other antiques. So, anything that can be resold without losing its value can be pawned.
Now let’s check out the advantages of borrowing money from a reputed pawnbroker.
- If you have a poor credit rating, then pawnbrokers are the best option for you, as there are fewer credit checks than any other money lender.
- It’s easy and quick. You can go and keep your belonging with the broker, and you can have money on the same day itself.
- You can pay the money back at any point in time, and you will be only charged with interest until the time you had borrowed the money.
- Suppose that if that product is sold, then the pawnbroker will not pursue you. You will be benefited. But in order to stay on the safe side, you should always ask your pawnbroker and check it in person.
There are some risks as well if you borrow money from reputed pawnbrokers:
- This might not be the most economical way for borrowing your money. It’s easy and quick, but the rate of interest is higher than any other huge street banks.
- You will be allowed to pawn a certain percentage of the amount of the item which you will be borrowing.
Thus, now that you know everything about lending money from a pawnbroker, you need to choose accordingly and go for the one who has a more economical rate of interest than the others. The moneylender should provide you with the same services as others. In the end, if you are in real need for money and you have no other way out then you should visit a moneylender. Be wise and choose well.