With rising prices of gold and silver, a recession, and home foreclosures, middle- and upper-class customers are looking to sell their items or get a short-term loan. This situation is good for pawnshops. However, pawning items is also advantageous for customers as long as they know how to sell or pawn their items for the most money. If you are looking to get instant cash from a pawnshop, here are tips to help you:

Decide if you Want to Sell or Get a Loan

If you prefer to sell your item, such as designer handbags, this means you are ready to get rid of that for good. Expect to get a bigger amount of cash than when you pawn it. Just like when pawning, the amount you can get out of the sale will vary depending on the pawnshop and the kind of item you are selling. However, if you decide to pawn the item, you will get cold cash but you have to return it plus interest within a certain period of time. Otherwise, you run the risk of losing your item for less money.

Understand the Terms of the Loan

Since you have to pay the interest of the loan every month, you may have to pay more when you don’t pay the loan back on time. The interest rate varies but it can be anywhere from 6% to 25%, depending on the pawn shop. The shop may hold your item for a minimum of 90 days and gives you a 30-day grace period to redeem your item.

Shop Around

You can expect a luxury pawn shop and jewelry store to pay top prices if the prices of gold are high. However, shopping around will help you find better prices and deals. If you are selling luxury purses, you will need to research pawn shops that accept this kind of items. At pawnshops, haggling can happen so don’t hesitate to negotiate.

Give Only Quality Items

Whether you sell or pawn, a pawnshop will accept just high-quality items they can sell. These include jewelry, tools, and accessories.  Inexpensive items like household appliances and ovens and other items that have lost value are not acceptable so just don’t try to waste time and effort.

Pawnshops may give you great deals on your items when you have been their repeat customers. As long as you show the ability to pay the loan back, they will add value to an expensive item to increase the possibility that you return to do business with them again.