Do's & Don'ts of Pawning an Item

If you’ve never visited a pawn shop before, you might feel intimidated or uncertain about how to proceed. Though you may have researched how pawning works, you might still feel unprepared to make the deal. Below are a few tips for beginners to ensure a smooth transaction that benefits both parties.

Do:

Bring your driver’s license and other paperwork.

Acquiring a loan through a pawn shop is similar to securing a loan through other means. You’ll need a state-issued ID, such as your driver’s license, and any relevant paperwork on the item you’re pawning. For example, if you have an autographed guitar, bring proof the autograph is legitimate, such as a certificate of authenticity or photo of the celebrity signing the guitar.

Read the fine print.

Get the conditions of your loan in writing and make sure you read them carefully before signing over your item. You should understand there is a risk of losing your piece if you don’t repay the loan when it’s due.

Don’t:

Accept the first offer.

Brokers expect to negotiate a price with you. Though they likely will not give you the face value of the item because there’s no guarantee of a sale, you should advocate for the rarity or quality of the piece. However, you should remember that you will need to repay the amount you decide upon.

Go in without research.

Research the value of your collateral by browsing online auction sites, contacting a collector if the article is a collectible, and estimating its value when used. Expensive jewelry and rare art should be appraised, which will tell you how much it is worth. From there, you can use this knowledge to negotiate with the broker.

If you’re looking for a pawn shop in Burnsville, MN, stop by Pawn America. You can have your item appraised by their professional staff to obtain the highest value for the piece. They are open to considering a variety of products, such as gold, jewelry, antiques, smartphones, electronics, and sporting equipment. Call (952) 435-7296 or visit their website for more information.

This post was written by our friends at Vivial for our NearSay Page!