Times are tough, but short-term loans can really help you out when you’re in need of cash. If you have knick-knacks and gadgets, jewelry or tools that other people might value, you can take them to a pawnbroker for a collateral loan. Not sure where to begin? Just read these tips to get started.
10 Tips to Getting a Collateral Loan
- Decide how much money you need. By having a specific amount in mind, the pawnbroker will have a better idea on how to get you the amount you need.
- Test and clean the item. Look around your home for an item that you haven’t used in a while and make sure it’s clean! If it’s not, this will just make the pawnbroker’s job more difficult. If it looks like you don’t care about the item, the pawnbroker probably won’t value it either.
- Call the pawnbroker to be sure he is interested in your item. Many pawnbrokers no longer accept guns, VHS tapes, VCRs or car stereos.
- Make sure the item is complete. TVs without remote controls, tool sets missing pieces, video cameras without cords and chargers are much less valuable when they come in an incomplete set.
- Have adequate ID. A reputable pawnbroker won’t take an item if you don’t have proper identification.
- Inquire about the terms & conditions, and the contract period for holding the items you bring in.
- Negotiate the price. The pawnbroker has to take in items at a low price so they can sell them at a bargain price and still make a profit. Just stating that you really need as much money as you can get won’t get you very much. Instead, you should state exactly how much you need. For example, “I need $44.53 to cover my utility bill.”
- Keep your pawn ticket. Many pawnbrokers charge a fee for lost tickets.
- Mark the due date on the calendar.
- Pick your item up well before the due date. Don’t wait until the last minute to redeem your items – you may end up losing your goods by doing this. You should pick your item up early, just incase any unforeseen problems occur, such as traffic, job responsibilities, illness, or transportation problems, which can cause you to be late. The pawnbroker must sell items that aren’t redeemed on time.
