The Pawn Shop or Pawn Broker
Are you thinking of using your local Pawn Broker? Read this first...
If you need cash quickly then you might be thinking of using a pawn shop or pawn broker to get it. After all, these have been around for hundreds of years. But think twice before visiting a pawn shop. There is the modern alternative of a payday loan cash advance that is likely to meet your needs more effectively.
The disadvantages of using a pawn shop:
- You have to leave something valuable (the pawn – e.g. gold, jewellery, watches, etc) as security – these items are also likely to have strong sentimental value. Can you really risk losing them?
- You will lose your pawned good if you cannot repay the loan and interest costs to the pawn broker on time.
- A pawn broker typically gives low valuations for the pawned goods.
- A pawn shop will not loan more than 25% to 50% of this low valuation.
- A pawn broker will not allow you to repay the loan and interest in instalments.
- A pawn broker will charge high fees even though you have given your property over as security and risk losing it.
- When you pawn your goods the pawn broker will give you a pawn-receipt (that proves you own the items you pawned). If you lose your pawn-receipt you will not be able to reclaim your property without considerable difficulty.
Rebecca Shah, for the National Association of Citizens Advice Bureaux, warns against using a pawn broker or pawn shop - 'It is a bad short-term financial solution.'
Pawn Shop groups include the following national companies:
- Albermarle & Bond Pawnbrokers Ltd
- H&T Pawnbrokers (Harvey and Thompson)
- The Money Shop
- Herbert Brown Pawnbrokers
- Cash Generator Ltd
- Cash Converters Ltd
- You don't have to visit a physical pawn shop – the whole loan process takes place online (100% securely)
- You get the cash straight to your bank account.
- No negotiations are required – the charges are fixed (see "what it costs")
- You don't risk losing your property.
- Your privacy is guaranteed – no one will know you have used our service (unlike with a pawn shop or pawn broker).