5 Things to Know Before you Use a Pawnbrokers

If you’re in need of a safe, quick and easy loan and are weighing up your options, you’ll know pawnbroking is a strong option to consider. It’s important to consider these five things before you decide to pawn your belongings, to ensure it’s the right road to take for you.

1. Remember an ID
Whenever you apply for a loan via a pawnbroker, it’s important that you remember to bring a form of ID with you. Some pawnbrokers will ask for one form of ID and others two, one being a utility bill. Bring both with you just in case, meaning you are guaranteed to still be able to apply and receive your loan on the day.

2. Your items will need to be in good condition
Before deciding what items to pawn for a loan, it’s important to check what condition they are in. When agreeing to a loan, the pawn broker will assess many different factors, including the item condition. If they decide the condition isn’t as good as it could be, they may decline the loan. Prior to visiting a pawnbroker, give your item a thorough clean.

3. You are allowed to change your mind
When exchanging your items for a loan, you’ll be given a receipt from the pawnbroker. This receipt will also act as your credit agreement, which means it is abided by law. After receiving your receipt, you will be allowed to change your mind within a 14 day period. Look after your receipt, it’s important you keep it safe.

4. You can borrow a percentage
If you are unsure about pawning personal items because they are so valuable and worry about the interest, you need not be concerned. If you do decide to pawn some fine jewellery or a watch worth more than the amount you want to borrow, pawn brokers will usually allow you to borrow up to 50%-70% of its value.

5. Your items can be sold if you fail to repay
It’s important to remember that any item you hand over to a pawnbroker can be sold on if you fail to repay your loan. If you have borrowed a loan of £100 or more, you will be given 14 days’ notice before your loaned items become the pawnbroker’s property, and you will be able to reclaim your goods in this period.(*If a customer encounters problems repaying their loan they can always contact the pawnbroker and see if arrangements can be made.)

At Cuttings, we lend against gold, fine jewellery and watches. If you’d like to find out more information regarding getting a loan for your items, we’d love to help! Get in touch by giving us a call on 01843 584550 or by visiting our contact page.