Why do People use Pawnshops?


Sarah Rodgers


March 9, 2020

Pawnshops were here since the beginning of time. And they’ve always been here to serve an essential purpose, helping the needy get cash when times get rough. But let’s be honest, we’ve all needed some fast money at least once in our lives. But one question remains. Why do people use pawnshops? You may be asking yourself why these people continue to come back to a pawnshop when they could get a loan from a bank or loan office. It’s puzzling, isn’t it? What is so intriguing about a pawnshop? Going to a pawnshop may not be as bad as you think and may even be a lifesaver when you’re in too deep somewhere else. As you know, pawnshops have been around for thousands of years. But what you may not know is that pawnshops were thought to have been found in ancient China, Greece, and even Rome. Ever since the beginning of time, there has been a high need for fast cash. Pawnshops were created for the purpose of getting loans in exchange for something called collateral. Collateral can be anything of value traded for cash. Most people would go into a pawn shop with an antique or precious ring and receive some money according to the value of the item. Most of these valuable items had meaning and weren’t items that owners wanted to give up, so instead, they would get the cash they needed now and pay interest on the item until they had the money to get their valuable item back later. Below we will go over the several different reasons that someone would go to a pawnshop.

Pawnshops are a great place to buy cheap and make a profit online. 

Very few customers that go into a pawnshop have the mindset of making cash. But those that do know what to look for. How do they do it? Well, first off, they research valuable items that are hot in the online buying industry, and they go to pawnshops seeking those items for cheap to sell online. A lot of these items include video games, consoles, and tools. But not everyone is cut out for it. A YouTuber named Casey from RockStarFlipper is known for his keen eye when it comes to buying and reselling items from a pawnshop. On some of his videos, he also tells you how you can become successful at it like him. 

Getting a loan without having it lower your credit

Yup, that’s right. You can get a loan from a pawnshop without getting lousy credit and that, my ladies and gentlemen is why pawnshops are so popular. Why go to a bank to get a small loan when you know they’ll be on you like peanut butter on a sandwich. With a pawnshop, you can get cash and be out the door before you know it, and if you can’t make the payments for your item, that’s okay, the pawnbroker will take the item you sold for collateral and sell it in their shop as payment. This, however, might be inconvenient for someone that has brought in an item of meaning, because interest payments can pile up and be a hassle when you want to get your valuable back. Just be sure to only bring in a loved item if you know that you will be able to make the payment within the next two months. 

Making easy cash

For anyone interested in making quick easy cash without any hassle or stress, pawnshops are the best places to go. Trying to sell your item online may take weeks or even months and that’s why selling your item to a pawn shop might be your best bet. You can get cash the same day and be out the door in a few minutes. This, however, is not a good idea for thieves. Anyone trading in an item for fast cash will have to give their name and ID to the pawnbroker and then all the information goes straight to the police to check for stolen property. Selling stolen goods to a pawn shop has to be one of the dumbest mistakes anyone could make. 

Buying at a better price

Another beloved reason why many people go to pawnshops is to get better deals on items they know would cost a lot somewhere else. Pawnshops are the best places to go when you are low on cash or just want a good deal. Items like PlayStations, Xbox 1’s, video games, bikes, tools, and tons of other things are sold at a lower price than you’d usually find anywhere else. 

Thank you for reading our article “Why do people use pawnshops” If you are interested in selling or buying items from a pawnshop Xtreme Pawnshop is the place to go. You can call us at (801) 876-1379 to get a quote or contact us online for any questions.