Pawnshop Loans: Everything You Need to Know

Before you head to the pawnshop, read this guide on everything you need to know about pawnshop loans!


What are Pawnshop Loans?


Pawnshops loans are the quickest and simplest ways to get money without the mounds of paperwork and unreasonably high credit score requirements. These loans are more convenient than traditional loans because they use your valuable items as collateral. Therefore, the pawnshop doesn’t require any credit checks. They’ll simply hand over the cash to you on the spot and hold your valuables until you can repay the loan.


How Do Pawnshop Loans Work?


If you need to get some extra cash, you can bring several different valuable items to your local pawnshop to obtain a loan. Depending on the value of your items, the pawnbroker will make you an offer. They will then set a timeframe for paying back the loan plus a small interest fee.


If everything goes according to what you have planned, you will return within that timeframe with the loan repayment plus any interest and fees. Then, the pawnbroker will give you back your item. Loan fees, interest rates, and maximum loan options vary from one state to another. In addition to interest fees, some pawnshops charge appraisal, insurance, and storage fees.


When you agree to make an exchange, the pawnbroker will give you a pawn ticket that details the conditions of your loan and fees associated with your transaction. Make sure to keep this ticket with you when you go to pay off your loan. If you fail to present your pawn ticket at pickup, some pawnshops will charge you an additional fee.


What If I Can’t Pay Back the Loan?


If you can’t pay back the loan in the required timeframe, you should communicate with the pawnbroker as soon as possible. In most cases, the pawnshop will offer you an extension. If you fail to pay back the loan entirely, the pawnshop takes full ownership of your item. They can then sell it to make back the loan money you took.


If you request an extension for your loan, be prepared to pay an additional fee. Some pawnshops will automatically tack on a late fee. Others will negotiate with you to pay an additional interest charge. In this case, you’ll get a new pawn ticket.


As with anything in life, the key is communication. Most reliable pawnshops are willing to work with you. If you don’t tell them how much time you need or ask for an extension, they won’t know that you plan to return for your items. If you fail to communicate or pay off your loan within the deadline, the pawnshop has the right to put your things up for sale.


Get Good Money for Your Valuables at Las Vegas Pawn


If you’re looking for a place to sell your valuables at the most competitive prices, our Highland pawnshop is the place to go. Contact us to get a quote for your items.