Thousands of people use their local pawn shop every day to get much-needed cash on the spot for items like musical instruments, fine jewellery, electronics, and more. While the famous series Pawn Stars has shone a light on the business of pawn loans and pawn shop products and services, pawn shops offer consumers practical solutions to some serious problems. What can you do if you don’t have enough cash to take some time off work to care for a sick relative? If an appliance breaks, could you fix it with the money in your bank account? When you use the services of a pawn shop, you can sell your items outright, or get a pawn loan with a favorable interest rate. So, is it better to sell your item, or get a loan? Let’s find out.

Why would you sell your items?

The main difference between selling your belongings versus getting a loan amount is if you sell the item, you forfeit it. Once you sell, that’s it - you can only get the item back if you purchase it from the pawnbroker. Selling an item is a straightforward way to get cash on the spot. You don’t have to repay a loan or deal with interest charged. Things that you’re happy to offload and don’t have much sentimental attachment to might be the best items to sell to a pawnbroker in Melbourne.

Why would you pawn an item?

A pawn shop specialises in offering consumers a short term loan — people pawn items for all sorts of reasons. In most cases, they need money to borrow to cover an emergency like an unexpected bill or repair. Sometimes, people will pawn items if they need to leave the area for a long time, and they don’t want to risk having their valuables stolen. If you don’t want to worry about losing your item while you’re away, a pawnbroker can keep your belongings stored away in a secure location.

Why would someone want to use a pawn shop for a loan?

Pawn shops offer consumers a range of benefits. For one thing, you don’t need a credit check to open a pawn ticket and get a much-needed loan. Pawn shops don’t run extensive background checks into your payment history or income levels. For many consumers, dealing with a conventional bank for a loan is a hassle, and it can take too long, and it’s also invasive. Personal loans from banks can mean you’re stuck paying a higher interest rate, especially if you don’t have decent credit. Credit cards also come with high-interest rates, and payday loans can be usurious. Pawn shops are easy to use, offer straightforward repayment terms, and give you the option to either sell your items or pawn them and get them back.

Do you have any items you’d like to pawn or sell? Please contact Melbourne Pawn Shop to learn more about our products and services. Speak to one of our Melbourne pawnbrokers today by calling 1800 618 905.