Small business

How to Tell if a Pawn Shop is Reputable

pawn-shopWith times being as tough as they are more people are turning to pawn shops for cash. But before you settle on a pawn shop, there are a few things to consider and ask to ensure the shop you're dealing with is reputable, advises Gold Buyers in Melbourne.

1. What are the fees and monthly interest rates?

Often people will ask about interest rates and forget about fees. A reputable pawn shop will be upfront about their fees and ensure you understand clearly. Fees can easily add up to a lot more than you expect so it can be worth paying a small percentage more in interest if there aren't any fees attached.

Also find out about a lost ticket fee. Most pawn shops charge a fee if you can't find your ticket. Check up on the shop's policy beforehand.

2. Where are you and how long have you been in business?

The company Gold Buyers in Melbourne suggest to ask the pawn shop how long they've been operating. Also find out how long they've been at their current location. Look for pawn shops that have been established for a good few years already and perhaps even have multiple locations. Chain stores tend to be more financially stable.

3. Do you require proper paper work and do you have insurance?

If the shop is robbed, what will happen if your stuff is stolen? A reputable pawn shop will be fully insured and can therefore guarantee that you will still get payment if something happens to your items. Make sure that on the pawn shop's paper work there is some sort of statement about their insurance policy.

What's more, a reputable pawn shop will ask for some form of identification when you want to pawn something. Some require a copy of your driver's license, some a thumb print and others your ID book or card. If they don't ask for ID and don' t need you to fill out the right paperwork, that should be a red flag for you to go elsewhere, say gold buyers in Melbourne.

4. Where will you keep my items?

If you're pawning a vehicle, for example, you'll want the item kept in a safe warehouse that isn't exposed to the element. Make sure the storage facility is insured too. Even if you're only pawning something small like a watch or a ring, it's good to know where it will be kept.

A good pawn shop will clean all their items and where possible keep them in shrink wrap in their stock room.

5. Will I get notifications?

Some people may easily forget when their payments are due or when to collect their items. A good pawn shop will call to remind you, simply out of courtesy. The shop will help you not to default on your loans.

6. Will you look through my appraisal?

While appraisals can be difficult to go by, they can certainly offer a good base line price for the item and determine its quality too. Often appraisals will be used in the case of insurance loss or even to get a ballpark idea of retail value of an item.

For jewellery pieces, the appraisal will describe elements like clarity and quality of diamonds, the type of gold used and the total weight of stones and carats. As for art, the appraisal can help determine the age of the piece, the original artist and quality of the frame if necessary.

Arm yourself with these 6 questions next time you visit a pawn shop and make sure you're dealing with a reputable and reliable service provider suggest gold buyers in Melbourne.

A post by Alicia May (11 Posts)

Alicia May is author at LeraBlog. The author's views are entirely his/her own and may not reflect the views and opinions of LeraBlog staff.

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