How do Pawn Shops Work?

If you are in need of quick cash, a pawn shop may be just the answer to your problem. A pawn shop allows you to turn the unused goods or no longer needed items in your home into money in your pocket.

Want to know if utilizing a pawn shop is the right option for you and your family? Our guide to pawn shops below is a great tool that can help you answer that very question.

How Pawn Shops Work Guide

In short, pawn shops allow you to use possessions you own as collateral to obtain a short-term loan. The advantage to this approach, is that you can gain easy access to cash without parting with the items you own.

Pawnshops once had a stigma attached to them, but no longer. Pawn shops are now seen for what they are – great alternative lending institutions that provide flexibility that banks cannot.

If you are ready to make your first trip to a pawn shop, here are a few things you should know before visiting us at Goodfellas:

1. Bright, Clean and Safe

Pawnshops are portrayed as dark and dingy, but at Goodfellas you will find that it is anything but. Goodfellas is a clean and bright store that is well organized and home to incredible goods. If you need more convincing, just check out our plethora of 5 star reviews on Google and Yelp.

2. How Pawn Loans Work

At Goodfellas we will provide you with a collateral-based loan, securing the finances with an object of value provided by you. Simply bring in something of value that you own, and if it is of mutual interest to us, we will offer you a loan.

We will hang on to your item until you are ready to repay the loan. While we have your item, you can rest assured that it will be cataloged, and safely stored in our secure climate controlled storage facility.

There is a small $5 fee assessed to every loan written. Your loan will accrue interest over the life of the loan. At Goodfellas we offer the first 30 days interest free on loans under $1000.

The term of your Goodfellas loan is five months. This is a whole month longer than most of our lending competitors. If, after five months you still need the cash, just return to Goodfellas and we will write you a new loan on the same terms. You can repeat this process for as long as you need to.

3. Getting a Pawn Loan

To pawn an item we need just a few items from you. First, you will need to have the item itself, that you want to pawn. Second, you will need to prove your identity by showing us a driver’s license or other government issued ID. Finally, we will require evidence that you are the rightful owner of the item you are pawning. There are many methods to illustrate ownership – proof of purchase document, a receipt or even the ability to answer specific questions about the item.

4. Repaying Your Loan

Before the term of your loan expires, come back to our shop to pay back the money borrowed and any interest that has accrued. Like all loans that accrue interest, the sooner you return the money you borrowed, the less you will owe in finance charges.

5. Failing to Return for your Pawned Item

Most of the time, borrowers return to collect their item, both appreciative and thankful for the opportunity to lend from Goodfellas Pawn Shop. But, if you are among the approximately 10% of individuals who choose not to return for their item, we will take possession of it and put it up for sale in our store.

For some, it is also comforting to know that failure to return will not effect your credit score, nor will it have any further reaching effect than the loss of the item you pawned.

6. Understand the Fees

Now that you have identified pawning as a viable option for you, it is important that you fully understand the cost of obtaining a loan. When you bring in your item, one of our helpful staff members will take the time to clearly explain what you can expect in terms of fees and key dates in the life of the loan. If you have any questions, they will take the time to provide clarification to any point that you do not understand. All of this information will be clearly outlined on your ticket.

7. Pawn Tickets

When you bring in your item to be pawned, we will accept your item as collateral and provide you with your loan and a ticket in exchange. Your ticket will outline the terms of the loan and will contain a reference number that you can use when interacting with the pawn shop, should you need to. You will bring this ticket back with you, when you return to collect your item.

8. You Can Buy Goods at a Pawn Shop

At Goodfellas Pawn Shop, you can find great deals on a wide variety of goods. We have a constantly rotating collection of high quality products that hit our showroom floor. While these products are not brand new, they have all been checked to insure that they are in good working order. For that reason, you know that you are getting a great product at a great price.

9. You Can Sell Your Goods at a Pawn Shop

If you are not interested in pawning your item, but still want cash-in-pocket, we are ready to buy quality items that you are no longer interested in.

Visit Us at Goodfellas

Stop by our store today. We are located in West Covina, which is easily accessed from anywhere in LA. We look forward to seeing you there.

GoodfellasHow do Pawn Shops Work?