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Are Pawn Shops Safe

by | Sep 28, 2020 | Blog

The short answer is yes; pawn shops are safe to use.

Pawning, as a trade, has been around for over 3,000 years. Since ancient times, merchants would take a customer’s physical assets and provide short term loans. These loans where on every day items, and where relative to the size, value, and re-sale potential of a said item if the customer was unable to pay back their loan.

The need for pawn shops has always been around. From time to time we all find ourselves in need of financial assistance. Our immediate thought these days is to A) Get a pay day advance loan B) Sell my item online or through a marketplace C) Try to get a credit based loan.

Unfortunately, that does not always work. Options A & B have us giving up some of our most precious possessions and not being able to buy them back. Option C may be difficult because it leverages many other data points about us that we are not always in control of.

Why Use A Pawn Shop?

There are many reasons why you could benefit from going to a Pawn Shop rather than the other options mentioned above. Here are just a few:

  • Pawn shops do not use your credit history report in order to write you a loan. Instead, they leverage the resale value of your physical property in order to approve you for an asset based loan.
  • Pawn shops do not report your loans to any credit bureau if you cannot make payments on time.
  • Pawn shops offer discreet, fast, and reliable services. You bring in your items; they are appraised, and you walk out with cash in your hands. No extensive paperwork, no intrusive checks, just a simple conversation and negotiation.

How To Choose A Safe Pawn Shop

Like any other industry, there are the good Pawn Shops and there are the not-so-good Pawn Shops. The difference between the two are very distinct. Here are some tips on how to spot a safe Pawn Shop vs. a not-so-safe one:

  • Check their online reviews. Look for reviews that a pawn shop cannot directly alter like Google, Yelp, TrustPilot, or Yotpo even.
  • Look at the Pawn Shops online ecommerce presence. Pawn shops generally sell their goods online, so look at what they are offering to the public through the Internet. Here you’ll also find out a lot about who the pawn shop is as an entity.
  • Call ahead. You will generally get a good feel for the Pawn Shop’s team when you talk to them. Ask your questions and get the details of the Pawn Shop’s general terms. Reputable pawn shops will NOT make you offers over the phone, but the best ones will answer all of your questions about the process, and stay on the phone with you to build rapport and give you a feeling of confidence.
  • Negotiate. Pawn shops by nature are businesses of negotiation. If you have a high priced item, and you know the intrinsic resale value of your item, a safe and reputable pawn shop will be willing to negotiate with you on terms and re-sale value assessments of your assets.
  • Get CLEAR and DIRECT loan terms before you proceed with a transaction. Legitimate pawn shops will have no problem giving you all of their terms and conditions up front – before you even show up to the shop. This is a clear and direct way of deciding for yourself if the terms meet your needs.

In Summary

Pawn Shops are an extremely safe way of meeting any financial shortfall that you may be experiencing. The use of asset based collateral loans removes all of the long-term anxiety of having your credit ruined and any fear of retaliation from an organizational institution. Finding a reputable pawn shop that you can build a relationship with over time is also a sure way of knowing that in a pinch you have fall back options. Pawn shops have been around for thousands of years. The good ones will always offer fast, safe, discreet transactions and pay you immediately with clear and direct loan terms.

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FKTRADE CO is an independent luxury dealer and is not sponsored by, associated with and/or affiliated with any of the brands listed on this website. FKTRADE CO only sells pre-owned watches and luxury and provides its own warranties on the items it sells that are not covered under a factory warranty. All brands are registered trademarks of their respective owners.