What Is A Pawn Shop And Why You Should Use One

what is a pawn shop and why you should use one
Cash Loans On Jewelry

Need Money Now? 5 Reasons Why You Should Be Using A Pawn Shop

Are you tired of borrowing money from friends and family? Maybe it’s time you consider visiting your local pawn shop. Most people perceive pawn shops as a last resort or an act desperation. However did you know getting a loan from a pawn shop is cheaper than a credit card or bank loan?

In this ultimate pawn shop guide we share all the perks associated with Goldexico pawn shop.

Request A FREE Valuation

What Is A Pawn Shop And Why You Should Use One

Getting a loan from a pawnshop is one of the oldest methods of borrowing money. The concept is simple bring an item of value and use it as collateral. Pawnbrokers will typically hold your item for a certain period of time. Once you have money simply repay loan plus an additional interest fee and get your item back.

If the borrower does not repay the loan within the specified time frame the pawnbroker will sell the item. However most pawnshops offer a grace period and give the borrower the option to extend the loan.

Pawn shops have high level security and are heavily insured. Some counties will not grant a business license unless the pawn shop meets strict security requirements. Pawn businesses are licensed both by the county and state. Therefore pawn shops must abide with local county and state regulations.

Top 5 Reasons Why People Would Rather Pawn Their Valuables Than Borrow Money From Friends Or Family

1. There’s no need for explanations. Let’s face it asking friends or family to borrow money is embarrassing. Keep your finances private. All transactions are confidential. We are here to help not to criticize.

2. Your items are probably safer at the pawn shop than your own home. Storing valuables in your home can be risky. Items are securely stored in vaults with 24/7 state of the art surveillance. We use high rated safes to store jewelry and other valuables.

3. No monthly payments required. Unlike credit cards and bank loans that require monthly payments pawn loans are due every 4 months. However if you decide to take your item out before the due date you will receive a discount off your interest and fee’s.

4. No credit check or application process required. The only requirements are you must be 18 years of age with valid identification. Check out our pawn faqs for a list of Identifications we accept.

5. Option to extend loan. Let’s say after four months you do not have the full amount to pay off your loan. Does this mean you lose your item? Not necessarily. We offer every customer the option to extend their loan for an additional four months. All you need to do is pay the interest fee and that will extend your loan another four months.

How Does A Pawn Shop Determine The Value Of My Item?

The head appraiser carefully evaluates each piece for authenticity, identification, condition, and demand. Based on these factors market research is done to see what the value of your item is. As a rule of thumb we use secondary online markets such as ebay, kitco, tradesy, auction sales results, etc. to determine your items current used market value.

Goldexico has qualified trained appraisers that will properly evaluate your items. Our appraisers are considered experts in their field and specialize in authenticating Diamonds, Luxury Watches, Coins, & Designer Handbags.

5 Common Items You Can Use To Get Cash Loan From A Pawn Shop

1. Gold & Diamond Jewelry is the item of choice to use as collateral. Did you know the average person might have hundreds of dollars worth of gold jewelry? The advantage of using diamond jewelry as collateral is that the price of gold is typically high. Jewelry is stored securely in vaults with 24/7 security surveillance. For more information check out our article on
2. Electronic Devices such as tablets, laptops, and game consoles are also a hot commodity for pawnbrokers. For a complete list of electronic devices we accept for pawn check out our electronics page.
3. Designer Handbags are popular therefore certain brands and styles are in high demand. Brands like Luis Vuitton or classic styles like the Chanel 2.55 flap bag are just some of the bags we accept for pawn. Goldexico was the first pawn shop to loan money on luxury designer handbags in Huntington Park. For more information check out pawn or sell designer handbags.
4. Luxury Times Pieces like a Rolex watch or the Apple watch. Get a cash loan on smart watches or high end watches.
5. Gold & Silver bullion coins are worth their weight. Depending on where the coin was minted, condition, and quantity will determine how much money you can borrow.


In summary pawn shops are safe and highly secured. We understand that county and state laws have strict regulations for pawn businesses. Pawnbrokers are professional appraisers with experience and expertise. Lastly there is no credit check or application process.

In closing the purpose of this guide is to make you aware that pawn shops are a great resource when you need to borrow money. Next time you find yourself in need of cash consider visiting your local pawn shop. Your friends and family will appreciate it.

Need Money Now? Request A FREE Valuation

Scroll to Top