Your grandmother’s old silverware or gold watch that’s tucked away in the attic can get you instant cash by taking it to a pawn shop. But, before you walk away with money in your pocket, here are the basic ins and outs of how pawn shops work.
Pawn shops charge many other fees that aren’t always disclosed unless you ask. For example, most charge storage and ticket fees.
Here is a closer look at some of the questions you should ask every pawn broker to make sure you aware of the different fees and charges that can arise from your loan.
By Julia Martyn
Provident Loan Society understands the items you opt to pawn may very well be precious to you and your family. This is why it’s so important for you to ask the right questions before striking a deal.
If you have burning questions about pawning, you can check out Provident Loan Society’s FAQ page where they answer the most common questions asked by clients.
In this blog, I’ll discuss three easy steps to estimate the value of an item to pawn:
- The “magnet test” to determine if the item is a precious metal
- Looking for metal purity markings (“k,”, “ct,” and “ster”)
- Weighing the item on a jewelry scale
I’m often asked how Provident Loan determines the value of items brought in for a collateral loan. It certainly helps to have an idea of an item’s worth before pawning it. For purchased items, a sales receipt is helpful, but be aware that retail prices are usually higher than what a pawnshop will let you borrow against. So don’t let this set you up for disappointment.
But what about that piece you inherited or just found in your jewelry box?
Below are some simple steps you can take to determine the item’s value.
Their research found that 42 percent of millennials have used alternative financial services as sources for short-term loans. Roughly 28 percent of college-educated millennials from ages 23–35 have also chosen short-term financing from pawnshops in the last five years.