The How’s and Why’s of Getting a Personal Loan

The How’s and Why’s of Getting a Personal Loan

When you need quick cash to catch up on bills or to cover an unexpected expense, a personal loan might be the lifeline you need. But, before you sign on the dotted line, remember that not all personal loans are the same. At Central Mega Pawn, we want to help our community stay informed of their options when it comes to getting the cash they need; so, keep reading for some helpful information on what personal loans really are, and why a pawn loan might be the right choice for you.

What is a personal loan?

Generally speaking, a personal loan is money borrowed from a lender. The lender can be a bank, which covers credit card advances as well as traditional banks, or a payday advance company, or even another person. Usually, the amount is repaid with interest within a mutually agreed upon period, which may be anywhere from weeks to years.

How can I get a personal loan?

Applying for a loan from a traditional lender like a bank requires you to provide lots of personal information, such as your employment history, as well as submitting to a credit check. If your application is approved, you must then wait for the funds to be deposited into your account. Borrowing via a credit card advance is much simpler, but also financially risky, as interest rates for credit card cash advances are astronomical.

When might a personal loan NOT be right for me?

If you have less than perfect credit, or do not have a long history with your bank, getting a personal loan may not be worth the time. This is because you will face higher than normal interest rates, which may end up costing you much more than you intended to spend in the long run.

What is a pawn loan, and why might that be better for me?

A pawn loan is a quick and easy way to borrow money; there is no credit check or application, and no wait times for forms to be approved. A pawn loan is a secured loan, which means that the risk of granting you the loan is taken care of by the value of the item you pawn.

Your loan amount is based on the value of the item you pawn.

For example, if you own a designer luxury watch, you can bring it to your local pawn shop, where your pawnbroker will appraise its value. Once the value is determined, your pawnbroker will offer you a loan for a fraction of the value, as well as interest rate, repayment terms, etc. If you decide to accept the loan and the terms, you get cash in hand in minutes.

When you repay your loan within the time frame of the contract, you would get your watch back. In this way, your watch can act as a lifeline repeatedly when you need quick and easy cash. If you do not repay your loan, your pawnbroker resells your watch, and your transaction is completed. There is no harm to your credit, and you will not owe additional money.

Here are some basics of pawnshop loans that you should know:

  • They’re usually for small amounts – The average pawnshop loan in the U.S. is for about $150.
  • Pawn loans will never affect your credit – Obtaining a pawn loan does not require a credit check and your credit score will not be taken into consideration. Also, if you do not repay your pawn loan, your credit score will not suffer.
  • Repayment periods are usually short – Repayment terms vary, but borrowers usually have 30 to 90 days to repay a pawn loan and reclaim their item.

Why a pawn loan?

Pawn loans are an attractive option for people who do not want to risk their credit score, or do not have access to traditional forms of funding. Pawn loans also tend to have relatively low-interest rates. They are lower than title loans or payday advances, the rates of which can be up to 4 times higher than the rate of a pawn loan. Pawn loans are also the fastest way to get cash. Your local pawnshop can get you the cash you need in a matter of minutes.

How can I get a pawn loan?

First, figure out the worth of your items. Pawnshops generally buy and sell all kinds of things, from tools to guitars, but your item must be in demand. Your local pawn shop will likely be most interested in items like:

  • Laptops
  • Watches
  • Jewelry
  • Video games and video game consoles
  • Sports equipment
  • Tools

Then, research the value of your item. You can look at recently completed sales on auction sites or see what other people are selling the item for. The more informed you are about the value of your item, the more you will know what you can expect from your local pawnbroker. Generally, you can expect about 40% of the appraised value, but this varies on a case-by-case basis, as every pawnshop transaction is unique!

Next, make your items presentable and gather any paperwork, manuals, original packaging, etc. that you can. The more complete your item is, the higher it will be appraised. Whenever possible, give your item a good, safe clean. No one wants to deal with dusty items!

How can Central Mega Pawn help me with a pawn loan?

Central Mega Pawn offers the Inland Empire’s best experience when it comes to getting quick cash for your items. We are community oriented, meaning that serving our neighbors is one of our highest priorities. We make every effort to offer the highest amount possible on every loan, because we are here to help you. Central Mega Pawn is a safe and helpful alternative to more risky forms of borrowing, such as payday advance loans and other predatory lenders. Also, we have a bustling online store, which means that our customer base is far-reaching. It also means that your item may be more in demand than you think! Visit us today to see how we can help you get the money you need in a matter of minutes!

How to Get the Best Price When I Sell My Gold Jewelry to a Pawn Shop

How to Get the Best Price When I Sell My Gold Jewelry to a Pawn Shop

Broken, unwanted or unneeded jewelry is a conundrum for many people. Whether you need some quick cash or have a bundle of jewelry that no longer fits your style, the best place to take your unwanted, unneeded or broken jewelry is to your local pawnshop.

Local pawn shops offer a faster, more convenient way to sell your jewelry compared to other alternatives. For example, selling your jewelry at a yard sale is time consuming, and you may get much less than you expect. Meanwhile, mail-in services are infamous for offering extremely low rates and poor customer service.

When you sell your jewelry at your local pawnshop, you will be dealing with a pro. Most pawnbrokers, such as Central Mega Pawn, have certified gemologists or jewelers in-house that can quickly and accurately determine the value of your jewelry. This helps you get the most for your items.

Here’s how to get the most value for your jewelry when you sell at your local pawnshop:

Do your homework

A common mistake that pawnbrokers all over the country encounter is customers assuming that all jewelry is in demand and highly valuable. Save yourself some aggravation and research your type of jewelry, and what it is currently selling for. Also, keep in mind that fake jewelry, costume jewelry, and stolen jewelry are never in demand and will not receive an offer.

It will also help if you research the purity and karat of the precious stones in your jewelry, as well as the current market value for precious metals like gold and silver. Finding out this info is not as difficult as many people think! Here’s a quick guide to finding that info and how it will come into play when you bring your jewelry to your local pawnshop:

  • Find the karat of your Jewelry – Is the measure of the purity of gold. This factor tells potential buyers and sellers how much of additional materials are contained in the jewelry. Although there are always exceptions, generally speaking, the higher the karat, the greater the value. Usually, there is a stamp somewhere on your jewelry indicating the karat.
  • Look up current market value – There are many helpful websites that track the daily changes in the value of gold and silver. Before you bring in your jewelry to your local pawnshop, take a look at the market value so that you have a general idea of what your pawnbroker will be taking into considerations.
  • Know popular brands – Jewelry by popular designers, or rare pieces from designers, can often be worth more. This is because many items of jewelry bought by pawnshops winds up being sold as scrap or melted down – fine pieces of designer jewelry, on the other hand, are ready to sell as-is. This translates to faster money for your pawnbroker, and a higher offer for you.

Why your local pawnshop is your best local buyer for you

When you sell to private citizens, jewelry shops, or through a website, you are taking a risk, because there is very little regulation to protect you from fraud. When you sell to a pawnshop, however, you are dealing with experienced professionals who comply with all local and federal regulations. Additionally, because most pawnshops are mainstays in their communities, they are motivated to treat every customer fairly.

Do pawn shops also buy silver or platinum jewelry?

Yes! Most pawn shops also deal with and will be interested in jewelry made of silver and platinum, and that also have other precious items like pearls or authentic gems.

What about selling jewelry broken?

Pawnshops can also make offers on your broken jewelry. However, keep in mind that the valuation of broken jewelry will be based more on the purity of the metals than on any other factor. This is because, when an item of jewelry cannot be repaired, it will be melted down.

How do precious stones, such as diamonds and rubies, affect my offer?

Precious stones or gemstones are often valued separately. Gems like diamonds, rubies, emeralds, and the like are appraised on factors like:

  • Carat – As is with gold, gemstones are valued based on their weight and purity. Central Mega Pawn proudly uses a jewelry scale on site, which helps us quickly determine an exact weight.
  • Color – Every gemstone is unique in color, so the color of your gemstone is an important factor in determining the value. Demand may vary depending on the type of stone’s color. For example, diamonds with a yellow-ish tint are not as in demand as pristine diamonds.
  • Shape & size – A gemstone of considerable size can fetch high offers. Similarly, unusually shaped gems tend to be appraised higher, because they tend to be rare specimens and highly desirable for collectors and jewelers alike.
  • Cut & polish – Particularly in the case of diamonds, a gemstone’s cut determines how much light it reflects and how much sparkle it will have. The more intricate the cut, the higher the workmanship on display, which influences the value of the stone.

However, despite all of these factors that we have just described, every pawnshop will have their own way of determining value. So, before you bring your jewelry in to your local pawnshop, give them a call or send them an email requesting information on how they appraise jewelry before they buy, as well as what is in demand in their store. Getting the highest possible offer may take some effort on your part, but it will be well worth it when you get your cash in hand.

As you can see, your local pawnbroker is likely the best option when you want to get the most money for your jewelry. Your local pawnbroker is knowledgeable, safe, and eager to help the members of their community. If you are looking to sell your jewelry in or around Ontario, Pomona, Upland or the surrounding communities in the Inland Empire, give the professionals at Central Mega Pawn a call today!