Have you been in a situation where you couldn’t pay your bills because you didn’t have enough money on hand? Or needed to pay a medical bill of a loved one but found yourself short on much-needed cash? If you answered yes, consider going down to your basement and looking for items of value. You can bring your valuable items to a pawnshop in Salt Lake City and get a loan.
An Ideal Solution for Quick Cash
Pawn shops in Utah are not only a place to buy items, such as diamond necklaces, engagement rings, and discarded musical instruments, at lower prices. They are also a great source for quick cash in case of a financial emergency.
Getting a pawn loan doesn’t involve a credit check or application process, unlike a personal loan. This is also a better alternative compared to auto title loans and payday loans. Pawn loans, however, require that you provide an item of value to serve as collateral. It could be a piece of jewelry, an old instrument, or an electronic gadget — anything you own with monetary value is acceptable.
A pawnshop staff will evaluate your piece to determine its value, which will be the basis of the amount of your loan. It usually amounts to about $150 or less, and you need to pay it back with interest. The interest rate varies based on where you live, ranging from 10 percent to 200 percent. If you fail to pay your loan on time, the shop will put your valuable up for sale to make up for the loss.
Items to Pawn at a Pawnshop
You can pawn a variety of items, but some items offer a higher value than others. The following are the top five items that can give you a reasonable price when you pawn them.
- Jewelry – this includes rings, necklaces, and bracelets. The value depends on its weight, quality of craftsmanship, and design, among others.
- Watch – pieces from popular luxury brands, like Rolex, are in-demand at pawn shops. The model, age, overall condition of your watch may add value, as well.
- Power tools – these are also sought-after items at pawn shops, especially if they are in good shape and from a popular brand.
- Electronic and mobile devices – devices, such as smartphones, tablets, and laptops offer great value, too, especially the newer ones. Older versions have a lower value, though.
- Collectible coins and currency – the price of rare currency collectibles exceeds its face value at pawn shops. For example, you can pawn silver dollars, proof sets, and American Eagle coins.
Alternatives for Loaning Money
A pawn loan is ideal if you have rough credit or if you’re having difficulty applying for a traditional loan. This type of loan usually costs less than the penalty of late payment for a credit card, but they could cost more than a traditional loan.
So, though pawn loans are a great source for fast cash, you should keep in mind it’s not your only choice. In situations where you need money right away, consider these other options:
- Sell your valuables – instead of pawning your valuables, sell them to the pawn shop or to a private buyer. Here, you don’t need to worry about paying back a loan.
- Ask help from family or friends – your loved ones are likely willing to help you out during a financial crisis.
- Make extra cash – having an extra job helps you earn extra money. You can sell some of your old items or participate in market research, as well.
A pawn loan can cover your financial needs during emergencies, but given its high-interest rate, you need to be responsible with repayment. Otherwise, you’ll lose the chance to get back your valuables.