Pawnbrokers have been around for many years now, and one downside of using such a service is that they will usually only consider lending you money against high valued items such as Jewellery. Whilst many people will use a pawn broking service at one time in their life, there is an alternative should you be looking to borrow some cash quickly but not have any high valued jewellery items and this is by utilizing the services of a Buy Back Store.
Buy Back Stores are opening up in great numbers in almost every town and city in Great Britainand unlike a pawn brokers they will accept almost anything you care to take in as a form of security on the cash you borrow from them.
How it works:
It is not uncommon for people to take to such places large screen televisions, CD and DVD players or in fact any house hold item, and the way these venues operate is identical to a pawn brokers shop.
You simply take in whatever household item you want to give them as security, along with a couple of forms of identification, they will then value the item for you and give you an offer there and then based on the type of item you are borrowing against and its current condition.
You will then be given up to 28 days to return to the shop with the amount of cash you borrowed and the interest payment and they will then give you whatever it is you handed over as security in exchange for that payment.
The Downside of Using a Buy Back Store
Unlike a payday loan you are offering up something as security when you are using the services of a Buy Back Store and if you do not make the repayment of the original loan and the interest on the day arranged then you will no longer own that item and the shop will be allowed to sell if, often for a profit and you will have no right to claim it back nor get a cut of any profit they make selling that item!
It is also worth noting that the value of the item you are giving up as security for the short term loan is going to be much less than its current market value. You will often find the Buy Back Store will often only give you 10 or 20 percentage of an items current value as a loan, so always be aware of this fact as you are very unlikely to get anywhere near the amount of cash as a loan as you may be expecting when using such a service!
The interest rate you will be charged for using the services of a Buy Back Store will also vary depending on which company it is that owns the business. However, if there are several such store in close proximity to each other it may be worth shopping around and taking your item into each store to see which one gives you the best offer for it!