Got some jewelry, a laptop, or a lawn mower laying around the house that you want to keep, but need to temporarily trade in for some quick cash? Are you a first-timer when it comes to doing a pawn and want to understand how it works before actually moving forward?
Well, you’ve come to the right place. There are many questions first-time pawners have about the process, and this comprehensive list below should answer many of your frequently asked questions. In this article, we’ll help you weigh the pros and cons and understand the ins and outs of how the pawn process works.
How a pawn loan works
Whenever you need some quick cash, pawn loans are a fast and easy way to get approved for a loan by bringing in your gently used merchandise to a pawn shop near you and using your item(s) as collateral to secure a loan against the value of the item(s). Typical pawn loans range anywhere from $20 or up to $10,000 (or more!).
Once you arrive at the pawn shop with your items, the pawnbroker will ask how much you need, and if the item is accepted, you will be made an offer based on a percentage of what the item is selling for on various sites including eBay, Amazon, Gunbroker, and Retail Stores. In some cases, the loan amount can be negotiable to allow the pawnbroker and customer to agree on an amount that the customer can afford and the pawn shop is still able to turn a profit should the customer decide not to come back for their merchandise. The loan is for 30 days, and the customer has the option to pay a fee and extend the loan for another 30 days or pay the initial pawn amount plus fee and pick up the item.
The fee varies depending on the loan amount. The customer has the option to pay the fee and then pay down on the principle (on or before the due date) to make it easier to pay out the pawn in the future.
The product is shelved safely in the backroom or in the safe if it is jewelry or a gun, so that when the loan is paid out, the item is in the same condition that it was when it was pawned. If the customer does not pick up the item in 30 days or pay the fee to extend it another 30 days, the item stays on pawn for an additional 30 day grace period (in AL this loan period varies by state law). The customer then has the option to catch up the pawn with additional fees. If after the additional 30 days, the customer does not renew or pay out the pawn, the product is forfeited and becomes the pawn shop's property.
Once you think you’re ready to make the move to pawn your item, all you need to bring to the pawn shop is your item(s) and a valid government issued ID. That’s it! You’ll be made an offer based on an evaluation of your item and be offered a percentage of what the item is selling for in the current market.
With this easy-to-get approach to lending, pawn loans allow borrowers to gain more flexibility to meet their immediate needs should they need a quick leg up. No more damaging your credit in the event that you need money now as traditional pawns have no effect on your credit score. Just walk in and out with the money you need and come back to pick up your items when you’ve paid out your pawn.
Related articles: Should I sell online via Craigslist | How does a Pawn Shop determine loan value for my item
As you can see, pawn loans are asure-fire way to get easy money when funds are low.
Not sure if you have an item that’s “pawn material” or have more questions about the pawn process? Find a Quik Pawn Shop near you or call 1-855-402-PAWN (7296) to speak to one of our pawnbrokers and get your questions answered over the phone.
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