Typically, when people pawn their valuables, they’re doing so as a last resort. Pawn shops in Olathe, KS are a good source of quick cash and loans when you desperately need it, but you might be surprised at the experience.
When pawning your valuables, keep in mind that pawn shops are a business, and they need to make money in order to stay open. Many customers are surprised at the amount of money their items are worth, the interest rate and the experience in general. Here’s what you should remember when you sell your items at a pawn shop:
- You won’t receive retail prices: If you’re pawning your engagement ring, you probably remember the “three months’ salary” you or your spouse paid originally—but you’ll likely receive an offer much lower than that. That’s because your items depreciate in value, but pawn shops are also taking the risk that your item is fake or broken, or that you’ll default on the loan. They can only pay an amount they can ultimately afford to lose.
- No need for a credit history: When you offer collateral for a loan, the pawn shop in Olathe, KS won’t check your credit history or otherwise take steps to ensure you’re a safe risk—they’ll look at the items instead. That’s another reason why you might be surprised that your offer is lower than expected. Pawn shops don’t have any recourse if you don’t pay back your loan, except to resell the items you pawned.
- You’re getting a short-term loan with collateral: The valuables that you pawn are collateral for a short-term loan. The pawn shop estimates the value of your item, tells you what they can afford to pay you and then gives you 30 days to pay the money back before they start charging interest (sometimes as much as 25 percent). The benefit to you is that you’ll get instant approval, as long as your collateral items are worth more than the money you need.
- Pawn shops will also purchase your items: Many pawn shops will also buy your items outright. They might offer you more money if you choose this option, since they will then be free to sell the items immediately and make their money back. If you need quick cash and you’re not sure when you’ll be able to pay back a loan, this may be a better option for you.
Keeping these tips in mind helps ensure that your pawn shop experience will be smooth and free of surprises.
Pawn shop in Olathe, KS
Harrison Street Pawn has been serving the Olathe area since 1985. Our pawn shop offers a wide variety of collectibles and jewelry, including gold, tools and more. We are also a full-service gun shop that can help you find, clean and even repair your firearms. If you have questions about buying or selling guns or precious metals, or would like to learn more about our selection of gently used goods, call or stop by and see us today.