As with every other financial instrument, such as a credit card or a mortgage, there is a responsible way of handling pawn loans.
What kind of items to pawn, when and how to pawn, are all part of the equation. So is the way to repay and retrieve your pawned items, which may be easier than you think.
What kind of items to pawn, when and how to pawn, are all part of the equation. So is the way to repay and retrieve your pawned items, which may be easier than you think.
Over the years, we at CashCo have witnessed the different ways in which our clients manage their pawn loans. Our goal is to create stronger communities by sharing tips for your day-by-day finances. That´s why we CashCo have repeatedly been voted San Diego´s #1 pawn shop, and that´s why we are sharing these tips with you today.
When are Pawn Loans Recommended?
There are three instances in which applying for a pawn loan is recommended:
- If you are confident that you can repay the loan
- When the item has no sentimental value
- In a financial emergency
Point A is of special importance. We have many clients who use their pawn loans to make ends meet before payday. As soon as they get their salary, they come to CashCo to retrieve the gold bracelet or ring they pawned. That is fantastic! Because it means they can use the same item, to get cash for gold, again and again! Some experts consider this is a more profitable strategy than selling cash for gold. Again, it all depends on the circumstances.
Base your decision on facts, not myths. In the old days, pawn shops were thought of as shady businesses where the customer always stood to lose. Turns out, today pawn shops are operations that are highly regulated by law, and pawn loans are often much more affordable than cash advances or payday loans. So, get informed to what´s smart for you, and don´t let biases get to you.
Never pawn another person´s property. It doesn´t matter if you think your daughter is never going to wear that ring again. Pawning another person´s items is not just cool -and may also be illegal.
Don´t pawn presents or communal property. If you are going through a divorce, wait until the assets have are legally divided. Then, you can do whatever you want with your share, like sell gold for cash or pawn your wedding band. This may be even helpful in moving on with your life.
Got a larger loan than expected? Start repaying. Javier* (not his real name) had a money emergency. Knowing how much gold is worth, he pawned an expensive watch. “I drove to CashCo, the pawn shop near me. There, I got more money than I expected for my watch.”
CashCo gives you more money than anyone else in San Diego; that is the reason why Javier had some left over after covering his emergency. “I was tempted to shop for clothes.” However, he was aware that his repayment capability was limited. So instead of blowing the surplus money, he took it to CashCo and made the first payment on his pawn loan. He got a great head-start and was easily able to make the subsequent payments and retrieve his item in a short period.
Find out how pawn loans CANNOT affect your credit. Pawn loans hold no risk to your credit record or financial standing before any reporting agencies. The only thing you stand to lose is your item (and that would only happen is you failed to pay back the loan). Should you lose the item, the pawn shop can´t ever go after you for defaulting on a loan. This is guaranteed by law. That´s why pawn loans are known as “No Recourse” loans.
Avoid pawning items that are close to your heart. Especially if you are not sure that you´ll be able to pay the loan back on time. In this case, it´s better to go for items that hold no sentimental value. Most people are fine pawning jewelry given to them by old flames, or pieces which are no longer in style. And did you know you can pawn tools and gadgets too? Check out all the different kinds of items you can pawn.
Mind your repayment strategy. Have you given any thought to how to repay the loan? Having a clear idea of how and where the payment money is coming from is the surest way to get your items back. However, pawn loans are often the result of financial emergencies. If that is the case, don´t despair. As soon as you catch your breath, make a note of the payment dates and find out about our extension policies. Also, read our Step-by-Step Guide to Recover Pawned Items to learn more about payment strategies.
CashCo has been voted as San Diego´s best pawn shop by the community and customers. Hands down, CashCo lends the most money – and is the most trusted pawn shop in San Diego! There is a CashCo pawn shop near you.
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Looking to get a quote on any item to pawn or sell?
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