When you’re in need of quick cash, exchanging your valuables for money at a pawn shop can be a simple and stress-free option. However, before you make a deal with your local pawnbroker, you’ll need to figure out if you want to pawn the item as a cash loan or sell it directly. Since each choice comes with distinct pros and cons, here are a few questions to ask yourself to determine whether pawning or selling is right for you.

Do You Want to Keep the Item?

When you pawn something, the shop provides a cash loan based on the overall value of the item. If you make payments on the loan based on the agreed-upon terms, the item will be returned to you. If you’re unable to pay the loan back, the pawn shop will sell the item to recover the funds.

Keeping this agreement in mind, you should first determine how much the item is worth to you. For example, if it’s a rare coin or heirloom jewelry, it may be in your best interest to pawn the item. If you’d rather just get the cash and move on with a possibility of never seeing the item again, selling may be the more efficient option.

What’s the Item’s Future Value?

The anticipated value of an item can help you determine whether or not selling or pawning is the better transaction. Electronics, for example, will probably lose value over time, which means you’ll get a better deal if you sell it upfront.

By contrast, rare coins, guns, art, and jewelry are all items that can increase in value over time. If you choose to pawn these belongings, you can get your investment back after repaying the loan. This choice will allow you to continue to benefit from the item’s rising value. In some cases, increasing value may allow you to pawn the item again for a higher rate.

Do You Want a Bigger Payout?

Pawn shop loans typically involve some level of interest. This means you will ultimately pay back more than you received—especially if you can’t make repayments in a timely fashion. Given this structure, offers on pawned items tend to be lower than those that are sold. If you’d rather walk away with a sizable stack of cash—with no obligation to the broker—selling may be the easiest option.

Whether you want to sell or pawn your valuables, American Trading Company in Cincinnati, OH, will make the process as simple as possible. Providing more than five decades of reliable services, this local pawn shop provides fair offers, uncomplicated cash loans, and easy repayment options. To learn more about these services—as well as the items they sell—visit this store online. For questions, call (513) 661-3633 to speak with a pawnbroker.