Taking rare, valuable, or collectible items to a pawn shop provides an easy way to get cash. However, you might wonder about the differences between pawning and selling belongings. Here's what to know about these two options, their potential advantages, and how to decide between them. 

Pawning

Pawning provides a loan in exchange for a valuable item. A broker will hold the piece and put it into safekeeping until you pay back the loan, including any interest and fees. This process also creates less risk for the lender, since they don't have to focus on reselling the item. This means they may give you a loan in a higher amount. However, if the allowance isn't repaid, the pawn shop will keep the object and sell it to recoup the amount owed.

One advantage of this option is that you can potentially pawn the same piece multiple times. For instance, after repaying the loan on a valuable piece of jewelry, you'll receive the item back and can hand it to a broker again whenever you need extra money. Additionally, any belongings that have appreciated in value over the years can help you receive loans in higher amounts each time they're pawned.

If the item is one-of-a-kind or a family heirloom, selling it means you might not see it again. By pawning it, you can get the piece back as soon as you repay the loan, preventing the need to permanently part with it.

Selling

Selling to a pawn shop helps eliminate items you no longer need, which will clear the clutter out of your home and create more storage space. The process involves agreeing on the piece's value with a broker, who will then make an offer without any further contractual obligations. With this convenient option, you won't have to worry about making loan payments or covering interest rates and fees.

You can also receive a higher amount for the belongings by selling them. For instance, a valuable Rolex watch, known to sell quickly, can provide the broker with fast cash. This means they can give an amount closer to the appraisal value.

Whether you decide to pawn or sell an item, visit A Happy Pawn in Honolulu, HI. Located in the city's historic Chinatown, this pawn shop provides fast cash and loans in exchange for items such as gold, jewelry, and watches. Call (808) 383-5253 to inquire about the value of any belongings you wish to pawn or sell, and visit the website to learn more about how they can help you get some extra money.