Gold buyers in Downers Grove, such as RJ Jewelry and Loan Co., are often pawnshops. Thanks to reality TV, pawnbrokers have become popular. You might use a pawnshop to make some extra cash. You can sell items outright to the shop, or get a loan in return for an item of worth. You must pay back the loan, with interest, to get the item back. Is it worth it?
You don’t involve banks when obtaining a loan from a pawnshop. That means you won’t have to fill out forms, prove your worth, and risk your credit. If you have bad credit, a bank won’t give you even a the smallest loan. Interest is usually lower with a bank, and you have some added security. If you choose a pawnshop, make sure it is one bound by laws and not just store policy. Your credit is safe with a pawnshop if you fail to pay back the loan. Pawnshops won’t turn you into credit companies so the faulty loan won’t count against you.
The biggest problem with pawnshops is that you won’t get much for your precious item. Gold buyers in Downers Grove will pay the going rate for precious metals, but your items won’t bring in top dollar. The shop has to determine the lowest amount they might receive from the item if you don’t pay back the loan. That is, what someone else might pay for it. The shop will then offer you an even lower amount. The shop has to take into account business expenses and the need to make a profit. Your iPad that you spent $800 for might only net you $100.
The best way to get a high loan is to offer something of sentimental value. The shop knows you’re more likely to pay back the loan to get the item back and might offer you more money so they can get a higher interest. However, if you fail to pay back the loan, your item is offered for sale in the shop. It also ends up with a higher price tag than what you got for the loan because the shop has to make back what they gave you and make a profit. If you want the item back, you must pay for it or risk losing it forever.
Pawnbrokers have several pros and cons. Weigh them all before handing over your precious items.
Be the first to like.