If you’re planning a visit to a pawn shop, it’s helpful to be familiar with industry terminology. These establishments are excellent places to buy, sell, and secure a loan, but what do each of those terms truly mean? Here’s your go-to guide.

Your Go-To Pawn Shop Terminology Guide

Pawn

A pawn is simply a loan backed by collateral, so it’s an excellent way to earn fast cash. If you have extra items of high value, such as jewelry, coins, gold, electronics, or instruments, they’ll be professionally appraised, and that value is the amount you’ll receive as a loan. 

After you’ve received your money, you have a set amount of time to pay it back. While it varies by state, the standard is 90 days, with interest and service fees added on. Pay back the full amount, and you’ll get your collateral back—it’s as simple as that. Keep in mind there’s a cap on how much pawn shops can charge in interest and fees, so the loans given are incredibly low interest compared to other fast options, such as cash advances or payday loans.

Sell

If you want to sell gold or jewelry outright, that’s always an option. You’ll receive the same value as the collateral loan, but you won’t have to pay it back. Since whichever item you choose will not be returned, make a thoughtful decision. If it’s something of sentimental value, selling might not be worth it. 

On the other hand, if you have a large jewelry collection that’s gathering dust, why not earn some extra money? With professional appraisers on hand, your local pawn shop ensures you get the highest market value. They’ll even tell you if it’s best to hold out and sell later at an increased rate. 

Buy

Want a deal on the latest electronics or a gift for your special someone? At a pawn shop, you’ll find remarkable savings on used electronics, accessories, gold, jewelry, and more. With an impressive, ever-changing selection, this is a great place to score a steal. 

Trade

Trading will save you even more on new items. If you’re getting tired of an outdated necklace, for instance, head in for a jewelry exchange. Your current piece will be appraised, and that amount will be applied toward whichever item you’re interested in. This makes switching up your collection quick, simple, and convenient. 

Whether you’re seeking a deal or want some fast cash, a knowledge of pawn store terminology will ensure you have a great experience. At Honolulu, Hawaii’s A Happy Pawn, you’ll receive the biggest loans available for your items. They have an extensive selection of high-quality goods and are known for offering low interest rates. Visit the website to learn more, or call (808) 848-5456 today.