Pawn shops have been a fixture for hundreds of years in countries all over the world. However, the recent popularity of shows like Pawn Stars and Hardcore Pawn have given people an inaccurate idea of what the average pawn shop is actually like, leading to some unrealistic expectations for people when they walk through the door of their local pawn shop.
With this in mind, here are some things you should know before you enter a pawn shop in Norwich, CT:
- Pawn shops are not looking to cheat you: So many people are under the impression, because of these shows and other media depictions, that owners of pawn shops are looking to scam people who come in, or that the pawn experience itself is scary. However, the truth is that pawn shops are regulated by various federal, state and local laws, and strive for professionalism at all times.
- Pawn shops want items that maintain their value: While pawn shops will often buy just about anything for the right price, they are particularly on the lookout for items that are classic or that will not lose their value over time. For example, certain types of jewelry and coins will always collect value and will not go out of style. Other such items include instruments, tools, firearms and more.
- Pawn shops are essentially in the loan business: Pawn shops offer collateral-based loans. This means if you have an item of value the shop is interested in, the pawnbroker will offer you a loan based on a certain percentage of the estimated value of that item. The pawnbroker then holds on to the item until you pay back the loan with interest, as well as any other agreed upon fees. Remember: these loans are regulated according to local and federal laws, so the deck will not be stacked against you. Interest rates on these loans vary depending on your location, but are typically less than what you would pay for a late credit card or a bank overdraft, which would negatively affect your credit score. If you default on your loan, you will not take a hit to your credit score, but you can satisfy the debt by handing over full ownership of the collateral to the pawnbroker.
- The pawnbroker will likely have some simple questions for you: One regulation pawnbrokers must follow as part of their daily work is to ask a series of simple questions when you bring in a piece of property. For example, the pawnbroker must confirm that you are the legal owner of the property in question, and will typically ask to see a valid form of photo identification, like a driver’s license or passport.
The pawn shop experience is not scary or incredibly glamorous as often depicted on television. You don’t have to be intimidated—it’s a friendly process and, in the right circumstances, a great way to get short-term loans that will not impact your credit. For more information, contact AZ Pawn & Guns, your trusted pawn shop in Norwich, CT, today.
Categorised in: Pawn Shop
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