A pawn shop  is a place to either buy or sell items. It is also a place where many people can find good bargains. Many people have seen a pawn shop and wondered what it is, and how it works. In fact, a pawn shop is a very simple business model that has been around for a long time. The idea is that you bring in something valuable, such as jewelry or a tool, and the pawnbroker gives you cash based on its worth. The pawnbroker does not check your credit record and, if you default on the loan, no report is made to the credit bureaus.

Top-Rated Pawn Shops in Your Area – How to Spot Them

Most pawn shops are very clean, well organized, and well lit. The merchandise is usually sorted by category such as electronics, tools, musical instruments, and collectibles. Good quality power tools and hand tools are in high demand at a pawn shop, especially those from reputable brands that contractors and DIYers trust. Collectibles and sports memorabilia are also highly sought after items at a pawn shop.

Most pawn shops are licensed and regulated by the local government. There are laws in most jurisdictions that prevent pawnbrokers from selling stolen goods. To protect the community, a pawnshop will generally only purchase an item from an individual if the person provides a valid government-issued photo identification document and a serial number for the item being sold. Additionally, a pawnshop will often hold an item for a period of time in order to allow local law enforcement to track the location of stolen items.