If you face a short-term financial crisis, taking your valuables to a pawn shop as collateral for a loan is a great option. There are several benefits to a pawn loan that make them a better option than traditional loans. You can get your hands on cash fast and don’t have to worry about conventional loans’ legal paperwork and credit checks. Still, you need to be sure to stick to the agreements of your pawn loan if you want to get your valuables back. So, what happens if you don’t reclaim your pawned item in time? Let’s discuss.
Everything You Need to Know About Pawn Loans
Most people have every intention of repaying their pawn loan on time and getting their valuables back. Still, many can’t meet the terms of their loan. Whether you forgot to get to the pawnshop on time or you don’t have the money to repay the loan, what happens to your pawned items? There are several things to consider with your pawned valuables when it comes to reclaiming your items.
The typical duration of a pawn loan is 30 days. Still, the terms depend on the shop, and many offer loans for up to 60 or 90 days. Here are your options for reclaiming your pawned property at the local shop.
- You can simply repay your loan within the agreed-upon timeframe to reclaim your pawned item.
- If you can’t pay your loan in time, you can ask the pawnbroker for an extension. In many cases, you can renew your loan for an additional fee or interest charge.
- You default on the loan, and your items are put up for sale by the pawnbroker. If you act quickly, you can pay an additional fee to get back your pawned item. Many pawnbrokers will hold your item for a period before putting it on the shelf. Additionally, some states require pawnshops to hold your item for 30 days or more to make sure they don’t come up with any stolen property claims. If you communicate with the pawnbroker, you might be able to come to an agreement to get your items back.
- In the worst case, you will have to repurchase the item for full price if no one has bought it.
If you fail to take advantage of any of these options, your item will be placed for sale at the pawnshop, and you’ll forfeit any rights of ownership.
Can You Extend Your Loan Terms?
Yes, of course! Most reliable pawnbrokers will extend your loan terms if you communicate. Remember that you will most likely need to pay an additional fee or add an interest charge to the repayment price. But in the end, you’ll get a new pawn ticket with a new due date and have enough time to gather the funds to repay your loan.
Take Advantage of Great Deals at Las Vegas Pawn
Our Fontana pawn shop has excellent options if you’re looking for a great way to get some fast cash. Contact us or swing by the shop to learn more.