The COVID-19 pandemic has turned life upside-down for people all over the United States. Many have been left without work, putting them unexpectedly in a tight financial situation and resulting in them needing to find ways to make some cash.
Pawn shops have become an invaluable resource in this time of uncertainty, as people need to find influxes of money while temporarily out of work. Pawning for quick cash in Olathe, KS is one option, and most states classified pawn shops as essential businesses to stay open during the pandemic for this very reason.
Here’s an overview of why pawn shops have proven to be an important resource for people during the pandemic.
Pawn shops give out pawn loans, the value of which are based on the items a customer brings in to the pawn shop. During the pandemic, many pawn shops have had to change their operation methods to be appointment-only, but they’re still providing their important services to people in need.
While the stimulus money has helped some Americans to get by with their basic needs, $1,200 isn’t exactly enough money considering how long many Americans have been left jobless.
When a person brings an item to the pawn shop, that item acts as the collateral for the loan. The pawnbroker will appraise the item in question to determine a loan value, and keep the item on hand until the loan has been repaid. Keep in mind the loan amount will only be a fraction of the actual value of the item—should you fail to repay the loan according to the terms of your agreement, the pawnbroker will need to sell the item at a higher price than they paid for it.
There are some pawnbrokers who will purchase items outright, but typically it’s in their interest to offer loans instead of outright purchases because they’re able to turn a much larger profit on those transactions.
Once you’ve handed over your item to the pawnbroker, you receive a pawn ticket, which you must keep, as it acts as the receipt for your item as well as a summary of the terms of your loan, including information about any applicable fees and expiration dates, plus a description of the item you handed over.
When used responsibly, the services of a pawn shop can be a great short-term loan opportunity. You’ll be able to get the cash you need right away, and get your item back once you’ve paid back the loan. It’s just important that you are actually confident in your ability to pay back the loan if you care about getting back the item you pawned.
Before heading to a pawn shop, make sure you do your research to ensure it’s a reputable store that is well reviewed and in good standing with the Better Business Bureau. This will help prevent you from being taken advantage of.
For more information about the ways in which pawn shops can help you get quick cash during the pandemic through pawning in Olathe, KS, contact Harrison Street Pawn today.