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Should You Pawn That Item? Questions To Ask First

A legitimate pawn shop should display the pawnbroker's symbol of three balls suspended from a bar. This symbol refers to Lombardy, the Italian province where pawn shop banking has its roots. In fact, for a long time, pawn shop banking was actually referred to as Lombardi banking.

Today's pawn broker can be a source of quick cash for electronics and other current items. Before you choose a pawn broker, ask yourself the following questions.

Are they licensed and insured?

A legitimate pawn broking business will have the relevant operating licenses and full coverage to protect themselves and their clients. These documents need to be displayed, and if you are unsure, you can ask to see their license and insurance.

Being members of respected organizations in the industry is also a good indicator of how reputable and reliable they are. While it is not mandatory to see these, look out for them and perhaps give the trade organizations a call before you release your valuables to the broker.

How is the valuation?

It is important to receive the best possible value for your item when you visit a pawn shop. To achieve this, you should know the real value of your property beforehand. Check their appraisal process and see if they adhere to it or not during your appraisal. A pawn shop should have an expert to perform the appraisal.

What is their reputation?

In this day and age of internet, conducting research on a company can take a matter of minutes. Every reputable company has an online footprint which will tell you what you need to know about them. Read reviews and client testimonials, call their contemporaries and even the relevant regulatory bodies in your state to verify that they are who they claim to be.

While there will always be a few unsatisfied customers, a wake of them should warn you of the broker's work ethic.

How is the item stored?

If you are planning to go back for the item, it is imperative to ensure you get it back in the same condition you pawned it in. Most pawn shops, especially those that deal in high-end and luxury items, will have a safe and tend to keep items in a good state.

Be wary of a pawn broker with limited facilities, as this means your item may not get due attention during storage.

Pawn services have been a lifeline for many people. But even as you try to stay afloat in your circumstances, it is key to employ the services of trustworthy people. Asking these questions will help you find someone you can trust.