A pawn shop is a place where people can bring in items of value, like jewelry or coins, to get a short-term cash loan or purchase brand-new retail goods. The process is simple: the pawnbroker will inspect the item, checking for condition, market demand and resale potential (not sentimental value). He or she then offers a dollar amount to buy it or a loan for it. You have a certain amount of time to reclaim the item or pay back the loan plus interest. Otherwise, the pawn shop will sell it to cover its costs.

Unlike a payday loan, pawning an item doesn’t impact your credit score. But the money you receive for your item will be a fraction of its actual value and comes with expensive interest rates.

Why Choosing a Trusted Pawn Shop Matters

Because a pawn shop’s inventory is ever-changing, it’s a good idea to keep an open mind and come with an adventurous spirit. You never know what kind of treasure you’ll find, and a friendly interaction with the pawnbroker can help your chances of negotiating a price that you’re happy with. It’s also helpful to be patient. If you don’t see the exact item you want, check back a few days later. Many pawn shops report their inventory and customers to local law enforcement on a daily basis. This information includes personal details, like names and addresses. For this reason, many pawn shops are hesitant to buy or lend to customers with criminal records.