News reports revealed that only 39 percent of people in the United States — comprising mostly millennials according to a 2018 survey from LendingTree — have enough savings to cover a $1,000 emergency or unforeseen expense. That being the case, an unanticipated health crisis or loss of employment could put millions of Americans in a precarious situation.
For most people, the solution to money problems is to apply for a personal loan from the bank. However, if you don’t have a good credit score nor the time to submit your application, you will need more convenient options for fast cash in Phoenix, AZ.
Fortunately, pawn shops exist as an alternative to banks. In fact, about 30 million Americans use pawnshops every year during times of financial need. There, people can either pawn or sell their personal belongings to get money fast.
But in the choice between pawning or selling, which option is better? Our team here at Biltmore Loan and Jewelry will answer your pawn vs. sell questions below.
Facts About Pawning Items
When pawning, you will give your chosen item to a local pawn shop for safe keeping. Based on the item’s overall value — which usually depends on authenticity, quality, and market demands — the pawn shop will loan you a specific amount of money.
In many ways, pawning items is similar to acquiring a collateral loan from the bank. If you are able to pay back your loan, then you will retain ownership of your item. If not, then the shop gets to keep it in exchange for the money loaned to you, and your debt is forgiven.
Here are some of the notable benefits of pawning:
- Pawning is temporary. As long as you pay your debt, you don’t need to say goodbye to your precious valuables forever.
- Unlike bank loans, pawning an item in Scottsdale and Chandler doesn’t require a credit check.
- Pawning gets you money fast. Here at Biltmore Loan and Jewelry, we can grant collateral loans on the same day you walk through our doors.
There are also a few pawning disadvantages, including:
- As with all loans, pawning comes with interest. You need to pay back what you owe on a predetermined schedule, and that schedule will accrue interest.
- There is a risk of losing your item if you can’t pay back our loan.
Facts About Selling vs. Pawning Items
Cash offers on the items you wish to sell will depend on the results of a professional appraisal. You may have some wiggle room to negotiate, and once you and the pawn shop employee reach an agreement, they will pay you in cash on the spot.
Here are some of the benefits of selling items:
- You will walk out of the pawnshop with the full value of your item.
- You no longer have to manage or store an unused valuable anymore.
Selling items also has some cons, including:
- You will have less valuable items or property to pawn in the future.
- You can’t reclaim your item unless the pawn shop lists it for sale and you buy it back.
Wrapping Up: To Pawn or to Sell?
There is no right or wrong choice when it comes to pawning or selling an item. Ultimately, you will need to assess your needs to determine which option is best for you.
Whether you are looking to pawn or sell luxury valuables in Arizona, the place you want to go is Biltmore Loan and Jewelry. Our team of appraisal specialists and GIA-certified professionals have a combined 75 years of experience in servicing Phoenix. Complete this online form now to request a free market appraisal. We look forward to providing you with the same world-class service that so many of our long-term customers love.