Selling vs. Pawning: Which is Better?

Do you need quick cash? Are you overdrawn on your credit limit? Maybe you don’t even have a credit card to fall back on when times and cash is scarce. You could go to a bank to get a short term loan but if your credit is bad and you don’t have much to use as collateral, you don’t stand a chance. The next best thing would be a payday loan but those have such interest rates that people find themselves in a never-ending cycle of debt once they start using payday lenders. A pawn shop Brisbane would be the best solution for you especially if you have valuable items like gold jewellery.

There are two ways in which a pawnshop can work for you. You can either find jewellery that you can use as collateral to get a pawn loan or you can sell the jewellery to a pawnbroker. But what is the difference between pawning and selling your jewellery?

Selling vs. Pawning

Selling and pawning both achieve the same goals. However when you sell you give up ownership. Pawning means that you can still get your item back when you pay your loan back. Pawning might sound like you get what you want without having to lose anything, which sounds better. However, there is more to it that you need to consider.

Pawnshops accept certain things, not everything

The most items that pawnshops accept include jewellery and luxury watches. You will find some pawnshops that accepts televisions, laptops, mobile phones, video machines, washing machines, and even guns.

Pawning your goods might not get you a large amount of cash. Pawnbrokers will estimate the full value of an item and then offer you a percentage of that value. When paying, you have to also take into consideration that there will be interest fees added to the full amount.

Benefits of Pawning

The fact that you can get your items back when you decide to pawn is a big advantage. If you have gold jewellery that has sentimental value, you have the guarantee that you will get it back.

Pawning does not affect your credit score. Pawn shops do not look at your credit rating but they look at the value of what you have to pawn. You will not have to worry about your credit being affected if you miss a payment.

Pawnshops are quick. It takes only a few minutes to apply for a pawnshop loan. They are better than conventional bank loans that take hours to complete. With a pawn shop Brisbane loan you are guaranteed that you will get your money, bank loans will have you jumping through hoops only to end up not getting the loan.

Benefits of selling Items to a pawnbroker

Pawn shops pay immediately. You can use your gold jewellery or anything of value as collateral. However, you can choose to sell instead of pawning.

When you sell your goods to a pawnbroker you are likely to get more for your items than if you were pawning. Let’s say for instance you have jewellery that $1000 when you pawn you will get $300 however if you sell you might get as much as $800.

When you sell your items outright, you don’t have to worry about paying the money back. You surrender ownership to the pawnbroker.

Selling to a pawnshop allows you to get rid of things you don’t need. If you have jewellery you don’t use anymore you can just sell and never have to worry about it.

News Reporter

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