BBB offers some advice for buying or selling from pawnbrokers

Dec. 6th is National Pawnbrokers Day. A pawnbroker is an individual that offers secured loans to people with items of their property used as collateral to ensure the loan is paid back. If you receive a loan at a pawn shop, you’re able to go back after a few months and pay back the loan and get your item back. If you don’t pay the money back, the pawn broker can sell it. They can also purchase your item outright to resell.

As you’re deciding which pawn shop to do business with, ask friends and family if they have experience with any pawn shops. Also, read online reviews. You should also check licensing and know pawn shops must comply with the Truth in Lending Act and the U.S. Patriot Act. In addition, look for pawn shops that have been operating for a while or out of multiple locations. If the pawnshop closes unexpectedly, you may be out of options, therefore it’s important to choose a reputable shop.

Better Business Bureau offers additional tips to consider:

■ Know what the pawn shop is looking for. Some have specialties like collectibles. Others will not take certain items, like firearms.

■ Be prepared to show what your object is worth. Bringing in items with an appraisal or original packaging can help the broker get an idea of its worth.

■ Look for valuable items to bring. Nice glass or jewelry are typically appealing. Expect to get somewhere between 30% and 60% of the item’s value.

■ Clean off the item before selling so you’re able to show it in its best possible condition.

■ Don’t try to sell seasonal items at the wrong time of year.

■ Know if you want to pawn or sell your item.

■ Always let the pawn shop make the first offer.

■ Pay the broker back on time, plus the interest and fees.

■ Negotiate. Set a minimum price ahead of time.

■ Don’t be afraid to ask questions, such as what’s the interest rate, are there additional fees and will you be sent payment notifications/reminders.

■ Don’t be afraid to walk away if a pawn shop isn’t offering you enough for your item.

■ Be wary if the shop isn’t upfront about policies and loan terms.

■ Inquire about loan extensions.

■ Make sure you have proper identification. If a shop doesn’t require you to do so, be wary.

■ Use a credit card when making a purchase. A purchase with a credit card is protected under Fair Credit Billing Act.

■ Know the return policy. If you need to return something, you’ll likely get money back in the form of store credit. Others may not take items back.