What Is Pawnbroking?

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Pawning jewellery, antiques, watches or other items is a very quick and secure way of getting a much needed short-term loan.

Traditionally, the pawnbroker’s shop would be somewhere to go for a short-term loan which would be secured against valuable items, and where the pawnbroker would also sell any items belonging to customers who were unable to repay their loan.

Tell me how I can pawn my valuables… Firstly, you’ll need to decide on which of your valuable items you would like to use as collateral in a secured pawnbroker loan. Once you’ve made this decision, it’s time to do some research into which pawnbroker would offer you a loan against your valuables: some pawnbrokers only accept traditional items such as jewellery and antiques, whilst others are more flexible and would take most items of value.

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So, once you’re at the pawnbrokers shop and they’ve examined your item, they’ll offer you a loan amount and a rate of interest for the duration of the short-term loan period. If you accept this offer, you should receive your money fairly quickly and you’ll need to repay it within the agreed time period in order to get your valuables back. However, if you find yourself unable to repay the loan, the pawnbroker has every right to keep your hold of your items and to sell them on to recover their costs. It’s as simple as that!

Online Pawnbroking As the stigma attached to traditional pawnbroking is still causing many people to hesitate about pawning their valuables, pawnbrokers are now also trading online. Applying for a pawnbroker loan online still offers the same confidential and secure service as a traditional pawnbroker’s shop, but it is much more discreet and you don’t even have to leave the house!

Firstly, it’s incredibly quick and easy to apply for a pawnbroker’s loan online as there are no lengthy, tedious paper forms to fill in.

Applying online is usually a very fast process and offers the same service you’d find in store from the comfort of home. To apply for a secured pawnbroker loan online, customers would normally enter their details and information about the item into an online form, at which point they would be contacted with an accurate valuation of the item and a loan offer. Then, if the customer was happy with the loan amount and the rates of interest, the pawnbroker would send out a pre-paid insured envelope for the item. Finally, once the pawnbroker has received the goods, the agreed loan amount would be transferred into the customer’s bank account.

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What counts as collateral? It’s also important to do some research into this, as different pawnbrokers accept different items as collateral for secured loans. However, the typical items pawnbrokers usually offer loans against include antiques and art, jewellery, watches, coins and bullions and scrap.

Fine watches are one of the most popular items to pawn thanks mainly to their high price tag and ease of valuation. It’s important to remember, however, that most pawnbrokers would only take fine watch brands such as Cartier, Zenith and Breitling as collateral and wouldn’t usually accept designer watches from the likes of Gucci, Prada and Dolce and Gabbana. Plus, the condition of the watch will also affect the loan you’d be offered against it, as a watch that is even slightly damaged would be worth a fair bit less than one in pristine condition.

Jewellery is arguably one of the most popular item types to pawn in both traditional and online pawnbroking. Whether they’re made of platinum or gold or silver, items of jewellery such as necklaces, bracelets, rings, and earrings can all hold great value. If you decide to pawn jewellery, look for a pawnbroker with lots of experience in valuation in order to get the best possible loan amount with the lowest interest rates.

Similarly, scrap gold, silver and platinum are all seeing resurgences in their popularity as collateral for secured pawnbrokers loans. This is because pawnbrokers will very often accept items made out of gold, silver or platinum despite any scratches or dents they might have picked up along the way: their valuations are usually based on the quality and weight of the scrap metal rather than their aesthetic value.

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When most people think of antiques, they think of century old vases and paintings that sit in attics or basements just gathering dust. Although pawnbrokers are of course used to valuing and lending against stereotypical antiques, many also accept more contemporary artworks, furniture and decorative items which are seen to have ‘antique’ value.

Although most of us would just discard gold, silver or platinum items if they were broken, pawnbrokers still accept scrap items as collateral for unsecured loans. Depending on the weight and type of scrap gold, silver or platinum, a considerable amount could be borrowed against their value.

Therefore, with so many different items of value usually being accepted as collateral and online pawnbrokers being so keen to offer the most competitive interest rates they can, pawning valuables online is fast becoming a completely normal and acceptable way to raise some money as soon as it’s needed.

Uncles money is one of the largest online pawnbrokers in the UK, Uncles will offer you the most competitive rates on valuables, such as; Jewellery, gold and some art. You can also get short term loans from Uncles.

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