In A Pinch? Why Pawn Your Heirloom Instead Of Selling It

There are many reasons people decide to pawn their inherited jewelry instead of selling them. Pawn is a collateralized loan and is the oldest form of banking in the world. About 30 percent of the U.S. population cannot qualify for a checking account and do not have traditional ways to meet short term cash obligations like medical bills, utility bills, etc.

Rather than sell off their possessions without the chance of getting them back, they can use them as collateral for a short-term loan, usually ranging from 60 to 90 days. They can then pay the loan along with the interest to get their precious items back.

  1. Retrieve Your Valuables 

Most people would opt to keep their family heirloom even if offered a reasonable price, that is, if they aren’t in dire need of additional funds. If it’s something with sentimental value, surely you will not want to lose your item. Pawning allows you to have the funds you need to get through a tough spot and it also increases your chances of retrieving your possessions. Selling your heirloom is the same as relinquishing ownership of it.

As the leading broker of high-end assets in Arizona, Biltmore Loan and Jewelry offers the most competitive rates you can find in the market today. Get your fast cash and retain your valuables without having to dip into your savings or pay off huge interests from bank loans.

  1. Maximize Your Payment

Pawnbrokers are experts at determining the value of electronics, jewelry, and other valuables. Since they are aware of market trends and inflation, they can give you a more professional estimate on your item’s value than simple guessing it yourself. This will help you know what your possessions are actually worth so you can maximize your payment.

  1. Save Time and Effort

There are a lot of steps involved in selling items and they can be time-consuming. Not only do you have to list each item in the newspaper or online, but you also have to monitor messages and phone calls to find the right buyer. You will have to filter through all potential buyers, attempting to eliminate hagglers and scams.  

Pawn stores helm the selling process from beginning to end, providing you the cash you need quickly and efficiently They also have a wide connection of interested parties, meaning you don’t have to go through the trouble of looking for honest buyers. You’ll save time and effort regarding the reselling of your item.

  1. Avoid Risky Transactions

If you have a high-value item in your hand, you want to get the most out of it. If it’s something with sentimental value, you’ll be at ease to know your precious item is in good hands. When you decide to sell independently, there’s always the risk of meeting fraudulent buyers. There are also those who don’t show up and, in some cases, the transaction goes wrong in other unforeseen ways.

Pawn shops are highly regulated by the government, leaving only little room for variation to their rates. They also have better security, ensuring that all the customers that walk through their doors feel at ease.  

  1. Save Your Credit Score

Another important benefit of pawning is that it doesn’t affect your credit score. What brokers care about the most is the value of the item you’re giving them, not your credit history. If you default on your loan or miss a payment, you won’t have to worry about your credit score taking a hit. It will remain independent whether you pay for your loan from the pawn shop.

  1. Enjoy A Speedy Process

Pawn shop transactions are straightforward and quick. Applying for bank loan can take days or even weeks at times. You’ll have to keep in touch with a banking agent regarding your application. There’s always the risk of getting your loan application denied even after you submit all the documents they required. When you go to a pawn shop, you’ll know immediately if they will accept your item.

  1. Keep Your Item For Future Transactions

Some assets accumulate value over time. Gold, for example, doubles its value with inflation. It’s a safe haven that will always have value no matter what. If you’re in a pinch today, you can pawn your gold jewelry and retrieve it to keep for its future potential value.

Necklaces, rings, bracelets, and other pieces made by top designers – Cartier, Bulgari, Tiffany – during their signature periods continue to appreciate. The rarer your item, the more you would want to hold on to it. Let it save you from your financial predicament but get it back if it has the potential to appreciate way beyond its current price.

Things To Consider

While pawning does give you a chance to get your item back, it is not guaranteed forever. Brokers have a strict schedule on payments, so you’ll have to pay the loan in a given period fully. When you renew the loan, be prepared for additional fees and interest charges.

Another factor to consider is that pawning usually can’t provide you a big sum. Even with a valuable item, you’ll most likely get to borrow only a percentage of its worth. Not being able to pay the loan allows the broker to claim the item and sell it to other customers. This is how they get their money back if you can’t pay.

Depending on how state laws are set up to encourage or discourage pawn loan, in a well-run shop, majority of the items pawned are picked up by the owner. This enables them to get a loan again in the future, which is known as “the pawn cycle.” This makes it best for most consumers to get a loan rather than sell.

Borrow against your heirloom jewelry and other valuable assets with Biltmore Loan and Jewelry. Visit one of our offices in Arizona to get a professional, no-obligation estimate on your items. Decide whether you want to sell or take out a loan. Call us today or fill out our form for more information.