There are many myths about pawnshops that might prevent you from considering your local pawnbroker when you need to sell your items or get a fast, secure loan.
Once you realize these myths are just that — misconceptions — you will start to see why you shouldn’t count out pawnshops for buying, selling and loaning. Your local pawnbroker can be one of your greatest resources!
Here are the top six myths about pawn shops that are easily debunked:
Myth #1: They Buy Stolen Items
You may have heard others declare they believe pawnshops buy and sell stolen goods.
This is false. In fact, pawnshops do the opposite — they work with local police to stop crime and catch thieves. They check lists of stolen items and compare serial numbers before buying any merchandise. And they take down the name, address and phone number of every person who wants to pawn something.
Myth #2: Pawnbrokers Try to Keep Items
It’s in your pawnshop’s best interests for you to successfully pay off your pawn loan — that’s how they make money. It also means you may be back to pawn items again. Pawnshops do not try to keep your stuff. They would much rather have the money paid back with interest.
Myth #3: They Charge Astronomical Interest Rates
No matter the industry, every lender will charge interest based on the amount of the loan, the level of risk they are assuming and the length of the agreement. When you get a loan from a pawnshop, it’s usually for a smaller amount of money and the loan lasts for a short period of time.
Your valuable item is the pawnbroker’s only collateral, and they’re in charge of its care while you’re paying back the loan. When you compare a pawnbroker’s fees to those of a payday lender or the amount you may be charged for an account overdraw, you will likely find the rates are quite reasonable.
Myth #4: The Industry Is Unregulated
Here’s another one of the popular myths about pawnshops: They can do whatever they want. This is not true, as pawnbrokers do business in a highly regulated industry. At federal, local and state levels, pawnshops need licenses, and the financial transactions are monitored in a similar manner as the banking industry.
Myth #5: Their Products Are Outdated
Maybe you don’t consider buying from a pawnbroker because you assume they only buy used items that no one wants. In fact, the opposite is true. You can get the latest electronics, rare musical instruments and all of the recent tech gadgets at your local pawnshop, likely for a nice bargain. Pawnbrokers only buy the best because they want to be able to sell those items again.
Myth #6: They Are a Last Resort
Do pawnshops attract only consumers who are at their financial rock bottom? This may be true in some cases, but most clients visit pawnbrokers for loans because it’s extremely convenient. There is no lengthy application process. You don’t have to explain why you need to borrow money, like you would if you were borrowing from family or a bank. There isn’t even a credit check. It’s a straightforward, helpful way to get a quick cash advance, and plenty of people take advantage of this benefit for countless reasons.
At Premier Pawn, we’re dedicated to providing you with the best service possible, whether you’re buying products, selling your items or looking for a loan. Don’t believe the myths about pawnshops — we are a transparent, honest small business ready to serve you!