A pawn shop Chicago  is a treasure trove for bargain hunters and collectors. Whether you’re looking for a new tool, an old coin, or a vintage jewelry piece, your local pawn shop is the place to be. But a lot of people have preconceived notions about these types of stores. They’re usually seen as “shady” or even scary but that just isn’t true!

Many communities rely on their local pawn shops to provide an easy way for people to borrow money using something they own as collateral. It’s a low-risk option because it doesn’t require a credit check and if the loan isn’t paid back within 30 days it won’t affect your credit score.

Finding a Local Pawn Shop: Tips for Choosing the Right One

The basic transaction is this: You bring in an item of value (either a jewelry or power tool), the pawnbroker inspects and assesses it’s condition, resale value and market demand, then offers you a loan amount. The pawnshop will hold on to the item for at least 90 days so that it can be claimed if necessary by police or family members.

Some pawnshops also sell brand-new retail items like musical instruments, tools and firearms. They’re regulated at the state and county level, with each one setting its own terms and conditions. But most pawnshops have some very similar steps in their process. And they’re all based on the same principles. So how do they work? We tapped Gale and Brian Ausley of Rick’s Music & Pawn in Dunn to break down the process.