Pawning, or the process of depositing an item of value to a pawnbroker as security for money lent, is one of the easiest ways to obtain cash. Deposits normally come in the form of jewelry made of gold, silver, or diamonds, as well as watches.
Convenience is one of the positive things that pawn shops offer. Just like banks, pawn shops are very accessible and easy to find. Unlike in banks though, the pledger, also known as the customer depositing the object, does not need to have a bank account of any sort in order to transact with the pawnshop. The only thing the pledger needs is the valuable that he intends to sell or use as temporary collateral for a loan. In just one trip to the pawn shop, he will be able to collect his cash.
With the accessibility of pawn shops come two more advantages. These are its reliability and the safety it ensures. After all, there are a lot of other options for disposing of items of value. Selling can also take place through ad postings and online channels. Online selling typically entails long distance sales. Complications may arise in the terms of payment (one never really knows whom he is transacting with) as well as in the method through which the item is shipped (high-value objects such as watches are put in great risk).
In addition to these risks, taxes also have to be considered when selling out of state. By transacting with pawn shops, the watch’s value is carefully assessed and directly settled in person. The seller or pledger not only leaves with immediate payment but also peace of mind.
But how does the pawning process go? Upon arrival at the pawn shop, the pledger brings his piece, e.g. a watch, and has its value carefully evaluated by a pawnbroker. Once the assessment has been made and agreed upon, the pledgee and the pledger sign the terms of the loan. Another difference of pawn shop loans from that of a banks is that the pledger’s credit history or status does not affect the corresponding interest rate of the loan. This is primarily due to the existence of collateral.
Whether the depositor is debt-ridden or totally free of debt is irrelevant. Everyone gets an equal opportunity to obtain cash. After the signing, the pledgee gets the right to hold the watch, and the pledger is often paid within the same day.
What if the pledger suddenly changes his mind? The best thing about pawn shop transactions is that the client is given an option to regain ownership of his watch. This can be done through paying the principal amount of the loan and its corresponding interest within the grace period given by the pledgee. If the grace period passes without payment, the pawn shop then acquires the right to sell the item to other people.
For those certain about wanting to get rid of their items of value, pawn stores also offer buying options and are always open to selling various articles, especially those that can be collected as investments. So whether the purpose is simply to secure a loan or to completely dispose of property, transacting with reputable pawn shops is quick, easy, and risk-free; definitely making it worth considering.