A brilliant way to bypass any chances of affecting your credit score, and hide any records of taking a small loan, is to pawn an item for money. This is as simple as that. You go to a pawn broker, give him whatever high priced item you have which you may pawn on, and take the money which you are offered against the pawned item. Pawning is an age old tradition, which has been in practice since the human race tasted the necessity for money. And now you have much organized, sorted, and disciplined ways of pawning, which will never show in your credit history, and you will yet continue to get small loans for short terms like fees payment, a sudden treatment, a sudden unplanned purchase, arranging a funeral and many more things.
# How to Pawn And Get Money?
You need two things for pawning and getting money. One is the item which you will pawn upon, and a pawn broker to take the loan. The item which you pawn upon is called the pledge. The pledge acts as the collateral against which you are given the loan.
The process of pawning is quite simple:
- You tell the pawn broker which item you want to pawn. If this item has a high demand in the market, and the pawn broker finds it a good item to resale and raise the loan amount, he accepts your jewellery. But if you bring an item for pledge without much value, or something which is already flooded in the market, the broker will turn you down. He will then tell you to bring another item which is valuable, and can help you raise the money in the auction.
- The pawn broker will ask for your identification documents, so that he may have proof of jewellery owner’s identification, in case some problem occurs due to a stolen item pawning etc.
- The broker will evaluate the cost of the item as per its authenticity, condition, brand, and demand in the current market etc.
- On evaluation and price determination, the pawn broker will offer you the loan amount. If you agree to take it, you become one of the customers of the broker and also agree to return back the loan within a decided tenure with certain interest rates.
# What Happens If You Don’t Return the Loan Within Provided Time?
You will be given a notice by the pawn broken that your loan with interest is due for payment, past which with final notices, your pledge would be auctioned in the market. Whatever money the broker will collect from the auction will be his.
# Advantages of Pawning
There are some advantages of pawning, which are as follows:
- With pawning, you never make a mark of taking a loan anywhere in your credit history.
- You may return the money in a very short term or may take longer. Therefore, you are not barred by any prepayment penalties or strict tenures. As long as you pay small portions the deal is on.
- It helps you in taking a loan secretly, and you don’t need to inform anyone, or let in any one at home for property and identity inspections and verification calls.
- You don’t need a guarantor for pawn, and you may simply proceed to get fast cash as long as you have a valuable item for pawning.
These days you can get information about a pawn broker online easily, and after a complete research you may proceed. This is a much easier way than to ask friends and colleges about a pawn broker.