What to Know Before You Get A Pawn Loan

Business owners know that you can’t anticipate everything and that there are occasions where something unexpected can lead to the need to come up with some cash and quickly. Rather than despairing, or resorting to an expensive bank or credit card loan, more and more businesses are discovering a cost-effective alternative to make ends meet short-term pawn loans at pawn shops in San Diego like Pacific Beach Loan & Jewelry.

Why Would Someone Pawn an Item?

If you need cash in a hurry, your options might be limited. Pawn loans are same a great option for coming up with cash quickly and hassle free. Running up your credit cards can mean high interest charges and may be subject to limits. Resorting to a bank lender means even higher charges still — sometimes close to the amount you borrowed. The bank won’t even loan small amounts of money, and will require excellent credit when they do. Pawn loans help you raise cash quickly without worrying about a mountain of paperwork or what your credit score looks like. Pawn loans are private and fast. There is no credit reporting involved, you get your cash immediately, and the only requirement is a valid, government issued picture ID.

Pawning Versus Selling

There are two ways to get money at a pawn shop, and selling to a pawn shop isn’t necessarily the better option. We encourage people to pawn instead of selling for a few reasons.

• Seller’s remorse: It’s not uncommon to sell an item only to change your mind later. Because we’re not paying out the full value of the item, you’re paying much more to get it back if you’ve sold to us than you would to get an item back once it’s pawned.

• Sentimental value: Sometimes the amount of money you need to raise necessitates pawning something like a piece of heirloom jewelry, or a piece that holds high sentimental value. If you sell it to us, it may well sell to someone else the same day, whereas if you pawn the same item, you’ll see it again as long as you keep the payments current.

• Repeat visits: You can really only sell something once, since selling and rebuying only to sell it again gets terribly expensive. However, it’s not uncommon for us to see the same people, with the same valuables, months after their first visit. It’s simply more cost-effective.

Loan Amounts and the Best Items to Pawn

When you pawn an item, you’re giving us collateral that secures your loan. The loan amount will be a percentage of what we’d receive if we sold that item, not its retail or resale value. Jewelry and watches are popular items, as are diamonds, musical instruments, current electronics like iPads and laptops, newer gaming systems, and tools. Just bear in mind that these items should be in good working order, and that items that are rarer — say, a 60’s era vintage Telecaster versus a knockoff brand that only cost you $200 new — are better bets than something that’s common.

Pawn Shop Rules and Regulations

If you’re hesitant about visiting a pawnshop, we understand. The industry hasn’t always been represented well in pop culture. To that, we would simply say, “Forget what you think you know.” Pawn shops in San Diego are subject to stricter regulations than most people realize.

• Understand that we will not accept stolen, or even suspicious, goods. If it isn’t yours, it isn’t welcome here. All items that any pawn or second hand dealer accepts in CA are reported to a statewide law enforcement database for comparison items that have been reported stolen.

• Know how the pawn process works; you have four months to pay back your loan principal, fees, and interest in full, plus a ten-day grace period. (We offer a 21day grace period.) You may rewrite your loan or pay the loan down at any point during the loan period by simply paying the interest due at that time and you may renew your loan as many times as you need. We’re always happy to answer any other questions you may have and can offer flexible terms.

• Look for the state license and police permit before doing business with a pawn shop.

• Read your contract before signing, and don’t lose your pawn ticket!

Pawn Shops in San Diego: Preparing for Your Visit

You’ll need a driver’s license or other state-issued picture ID. and a thumb or fingerprint is required. If you have receipts or other proof of ownership or value, it’s a great idea to bring those with you. Once we have established the authenticity and relative resale value of your items, it’s a simple as inputing your information along with a description of your items and you can walk out with a cash loan in 5 minutes or less!

Questions? Call or visit Pacific Beach Loan & Jewelry today!