A woman handing a necklace to a pawnbroker to appraise. Is it better to pawn an item or sell and item?Is it better to pawn an item or sell an item?

Pawn shops provided quick cash, collateral loans to everyday Americans who need a little extra cash to meet a variety of financial needs. However, pawn shops will also buy items of value like gold, diamond, platinum or silver jewelry, as well as a variety of other valuable items. If you’re looking to visit a pawn shop for extra cash, you may consider weighing the benefits of pawning your item instead of selling it.

Pawning

When you pawn an item, you use this item as collateral to secure a loan. The amount of the loan you receive is based on how much you need to borrow, as well as the value of the item. Other factors that affect the amount of your loan can include the market demand for the particular item, the resale value and the item’s current condition. In the case of gold or platinum, the amount of your loan will be based on the quality of your precious metal and its current price.

When you get a pawn loan, you’ll receive the cash you need as well as a contract or pawn ticket. You’ll also leave your item with the pawnbroker to be stored securely until you return to repay the loan. Once you’ve returned and repaid the loan in full, you’ll receive your item. For more details, including information about loan renewals, time periods or defaults, visit our FAQ page.

Selling

Selling an item at a pawn shop is simple to understand. In this situation, you’ll bring in your item and negotiate with the pawnbroker until both parties agree on a sales amount. You’ll receive the cash you need, and your transaction is complete.

Pawn vs. Sell

The greatest benefit to pawning your item rather than selling it is that you’ll get the money you need, and you’ll be able to keep your item. By simply using your item of value to secure a loan, you’ll be able to walk away with cash in hand and return at the end of your loan period to repay the loan and retrieve your item. While your item is in pawn, the pawnbroker will securely store it on the premises.

Another benefit to pawning an item instead of selling it is that you can use your item of value again and again to secure pawn loans. Selling your item is a one time transaction.

Finally, pawning an item requires no credit check, no employment verification and pawning an item can never affect your credit.

If you’re looking for a pawn loan, contact a Best Collateral store today.