If you’re looking for quick cash, a local pawnbroker like Best Collateral in San Francisco’s SOMA District might be one of the first places you consider. You can get a loan on gold or other valuables, or you have the option of selling anything of value.

how much do you really know about pawn shops
How much do you really know about pawn shops?

Many people wonder whether it’s best to pawn or sell at a pawn shop. The answer to this question depends on many factors. For those who have never used a pawn shop before, it’s important to first understand the difference between pawning and selling.

When you pawn an item, you are taking out a loan using your valuable as collateral. The pawnbroker will agree to give you a certain amount of cash and hold your item until you have paid back the loan amount plus interest and fees. Should you choose not to repay your pawn loan, the pawnbroker keeps your valued item and is able to sell it to recoup the loan amount.

When you sell an item at a pawn shop, you simply bring in your item for sale. You and the pawnbroker come to an agreement on an amount that the pawnbroker pays to you. You leave with cash in hand, and you have no further obligation to the pawnbroker.

The first thing you need to consider when deciding whether you want to pawn or sell is whether you wish to part with your item of value. Is it a family heirloom or something of significance to you? If so, then you’ll probably want to pawn it.

Another thing to consider is the value of the item. If you own a Rolex watch or you are considering taking out a loan on gold, then what you have is collateral that will likely continue to increase in value. If you pawn the item, you retain ownership, and you will still have them down the road when they have appreciated in value. If you find that you need money in the future, you can secure another loan using the item as collateral again and again.

Another benefit of pawning is that you’ll often get more cash. A pawn loan is less of a risk for the pawnbroker, because they aren’t as concerned about reselling the piece.
If you have a valuable you don’t mind parting with and you don’t want to have to worry about paying back a loan, then it may be easier for you to just sell. You will have the extra cash you need on the spot. Whether you want to take out a pawn loan or sell a valuable, a visit to Best Collateral pawn shop in the SOMA District can help you get the extra cash you need.