What Happens if You Don’t Return to Reclaim a Pawned Item?

Pawn shops offer a unique service to people that are in need of some quick cash. You can literally walk into a pawn shop with one of your items and walk out with cash in your hand. When you pawn an item, you are getting a loan that doesn’t affect your credit score and have the opportunity to reclaim your item at a later date for a fee. The loan amount you receive for pawning your item is based on a percentage of the value of the item being pawned. It’s a great way to get cash quickly and easily. You might be wondering what happens to the pawned items that people never come back to reclaim. Keep reading on below to learn more.

What Are the Options?

1. Paying the Loan Back

The first option for people that pawn their items but want to get them back is to pay the loan back along with a fee. Typically, there is a due date on the loan. That means there is only a certain amount of time for the person to pay the pawn shop back and receive their item. There’s also typically the option of paying the interest due on the due date to extend the loan for another 30 days. Renewing the loan means paying an additional fee for every renewal that is based on the outstanding amount. Paying the loan back is the most straightforward way to reclaim an item that you have pawned. Just keep in mind that the clock is ticking when you pawn one of your items.

2. Paying the Loan Back Late or Not Paying the Loan Back at All

Sometimes, people decide that keeping the money from the pawned item is a better option than paying the loan back. When this occurs, the pawn shop relinquishes the item and makes the item available for sale to the general public. The good news is that when you don’t pay the loan back at all, it doesn’t affect your credit score like it would with a normal loan. This is a huge benefit, particularly for people who have lower credit scores. Another option at the pawn shop is paying the loan back late. This typically means that you will pay more than the initial loan to get the item back if it’s still available.

Whenever you pawn an item at your local pawn shop, you should keep in mind that you can get the item back at a later date. Make sure that you have a plan in place to get the item back if it’s a belonging that is important to you. It’s also vital to be conscious of the fact that an item might be sold if you don’t pay the loan back in time. Pawn shop owners don’t want to confiscate items or sell them if they mean a lot to their customers. The goal of a pawn shop is to provide a valuable service to their customer and keep them happy so that they bring them steady business.