How Do Pawn Loans Work?

January 28, 2022
How Do Pawn Loans Work?

If you have ever had to ask yourself how do pawn loans work, then you are not alone. Pawn loans are a great way to get your hands on some quick cash by using items you already have.

It’s one of the easiest and longest-running ways people have been able to get fast cash using their property. If you have never had a pawn loan before, here’s how it works.

So…How Do Pawn Loans Work?

Pawn loans are often the cheapest way to get a loan, in regard to paying it back. Very often, people use a pawn loan when they need a small amount of money quickly.

Your items are evaluated, and you get a ticket with a number that corresponds to the items you pawned. Once you are ready to pay the loan, you bring the ticket in and get your items back.

What Can I Pawn?

Most companies that offer a pawn loan will take most things of value. If you have musical instruments, electronics, like laptops or reading tablets, jewelry, tools, and guns.

They usually expect smaller items that you can carry, but they will look at larger items like, riding lawn mowers and exercise equipment as well. If the item is still working and still has some value, it’s an option.

Any item that will be pawned will need to be brought to the store. The items need to be seen in order to evaluate them. Pictures are not allowed. Be mindful when bringing in firearms and make sure they are not loaded. All items you bring in for collateral are kept securely on the premises.

How Much Can I Get?

A pawn loan works by giving you a fair price for the items that you leave. The lender needs to assess the value of the item in case the loan isn’t paid back.

Nice items in good condition should get you close to what you want. Keep in mind most of these loans are for smaller amounts. Good quality gold jewelry will get you more than a battered saxophone.

If you need a bit more money, you can bring in more than one item. All items will be evaluated separately and given a loan price.

What Happens if I Can’t Pay it Back?

A pawn loan works off your collateral items. If you can’t raise the money you need by the time the loan is due, you have a few options. There are extensions available to give you more time or you can surrender the item so the lender can sell it to recoup their funds.

In order to qualify for a loan extension, you must pay a portion of your outstanding loan or interest to keep the items from being sold.

If you don’t apply for an extension and don’t return to the store to make any further arrangements, the items used as collateral will be retained by the lender and sold to cover their costs.

How Do Pawn Loans Work?

Pawn loans are very straightforward. You just bring in the items you want to pawn and get them evaluated. You receive the cash right on the spot and they hold on to your items until you come back to pay the loan off.

You don’t need a credit check, but you need to be 18 years of age and have a valid state ID. That prevents stolen items from being pawned to a lender.

For more information on how a pawn loan works, contact us here at Lending Bear for store locations.