
Table Of Contents:
- What Is A Pawnshop Loan?
- Advantages Of Pawn Loans
- How A Pawn Loan Works
- Best Items To Bring A Collateral
- Considering A Pawnshop Loan
- Contact The Vault Jewelry And Loan
Many life events can cause you to need a loan. Most processes from lenders like banks or credit unions require credit checks and lengthy applications to grant a loan. You’ll pay back the amount you borrowed over time, with interest rates and other fees.
Sometimes, a traditional loan might be out of reach for you. If you have a lower credit score or can’t meet the loan application requirements from specific lenders, you’ll need to find another option.
When you’re having trouble getting a loan or need quick cash, a pawnshop loan might be your best option. You can receive a pawn loan without undergoing a credit check or completing any traditional loan requirements.
In this post, we’ll take a deeper dive into pawn loans to see if this option is beneficial to you.
What Is a Pawnshop Loan?
It might be hard to imagine, but a pawnshop can work the same way as any lender. A major difference between a traditional lender and a pawnshop broker is that you will need to bring an item as collateral.
Pawnshop loans can be an excellent way to use the old valuables you have in your attic or basement. You can take these belongings to a pawnshop and either sell them for cash or agree to a pawn loan.
A pawn loan can help you meet your short-term cash needs without affecting your credit. Instead of forfeiting your property to the pawnshop, they will hold onto the item for a specific amount of time as you pay off your loan.
Pawn loans are similar to personal loans because you can get them for smaller amounts of money. Personal loans can also be unsecured or secured, meaning you don’t always need to have the pawnshop hold your item as collateral. You’ll also need to meet the lender requirements to receive a personal loan.
Getting the loan is simple. The lender will determine your loan’s amount based on the value of the item you brought to the shop. Once you and the lender reach an agreement, you have 30 days in Virginia to pay the cash loan back.
Advantages of Pawn Loans
Out of all the loan options available, what makes a pawnshop loan so enticing? Sometimes, you need money quickly and don’t want to go through the traditional loan process. You have some valuable items around your home, and you know you can repay the money in a month. In that case, a pawnshop loan may work for you.
Here are five advantages of taking out a pawn loan.
- Fast results: The process of receiving a pawn loan and paying it off is much quicker than other loans. There’s no approval process or waiting on a credit check. When you bring your valuable belonging to the pawnshop, the pawnbroker will appraise it. Then, you’ll sign the loan agreement and get the cash for the item. You’ll repay the pawnbroker according to the loan agreement, and you’ll get your item back as long as you pay back the loan in the given period. It’s that simple.
- No credit check: Many traditional loans require a credit check, but not a pawnshop loan. Since you are offering an item as collateral, it won’t affect your credit score if you don’t repay the loan. Still, be diligent about paying the pawnbroker back. The store will take possession of your item and resell it if you fail to pay the full amount on time.
- Interest rates can be lower: While you’ll pay higher interest rates, they are still lower than other alternatives like title and payday loans. You can estimate your interest rate by using an online pawn loan calculator.
- Simple repayment: Since the average loan amounts from pawnshops are typically around $150, they can be more attainable for people to repay. Your loan amount will depend on the item you bring in, and you’ll pay an interest rate. Sometimes, you can extend your contract if you don’t have the money to repay the loan by paying the interest amount. The pawnbroker will have to accept the agreement.
- Collateral: Some traditional loans that take collateral require the items meet specific criteria. But, since pawnshops accept various items as collateral, be aware they will give you the price they think the item is worth. You can bring items like jewelry, cars, firearms, electronics, tools, watches and cellphones to a pawnshop.
If you’re in a bind and need fast cash, a pawnshop loan may be the best choice for you. You can talk to your local pawnbroker to ask what their loan policies are and learn more about the benefits of a pawn loan.
How a Pawn Loan Works
In summary, you can get a pawn loan by offering your collateral for cash. The pawnbroker will collect your payments until you pay off the loan and you get your item back.
Pawnshops are government-regulated businesses that typically need to follow the same rules as other financial institutions, so you shouldn’t worry about any rumors you’ve heard. The pawnbrokers should offer you a fair appraisal for your items and abide by the loan contract you sign.
Getting the Loan
Here’s how the beginning of the pawnshop loan transaction works. With pawn loans, also known as collateral loans, you offer a valuable belonging that you think will get appraised for the amount of cash you need. While you may estimate your precious belongings as holding a lot of value, prepare yourself that the pawnbroker may appraise them for a lower amount. The pawnshop ultimately wants to make the best deal. You may also receive a lesser percentage of what the item will sell for. It’s essential to be aware of how much pawnshops give out as cash loans, so you can estimate how much you’ll receive.
Before you get the loan, you also may need to prove ownership of the item. The pawnbroker can ask you a series of questions regarding the item to make sure it is yours. They don’t want to encounter a situation where someone is trying to offload a stolen item or bring it to the pawnshop without the real owner’s knowledge. They may also require a government-issued ID to confirm your identity before they give you the cash loan.
Repaying the Loan
After the pawnbroker appraises the item’s value, they will offer you a percentage of the appraisal amount. Now, you should understand the process of repaying the pawn loan, so you can get your belonging back.
You’ll have 30 days to pay back your loan and any interest or fees stated by the pawnbroker. The shop will give you a ticket showing the conditions of your pawn loan. Remember to keep this ticket somewhere safe, since you’ll need to bring it back to the pawnshop to retrieve your item.
The pawnshop will keep your item safely locked away to give you peace of mind about its protection.
Once you reach the end of your loan term, you pay back the loan amount and your item returns to your possession.
Interest Rates and Fees
Fees and interest rate charges are always going to be part of the loan process. Interest rates may be a little higher than traditional loans, but they can have lower interest rates compared to alternative fast cash options. Pawnshop loans are secure, so brokers can offer their customers a lower APR. Interest rates and fees also vary from state to state because of government regulations.
You Can Negotiate Offers
When pawnbrokers appraise your item and quote you a price, remember this is always negotiable. If you think the initial offer is too low, talk to the broker about a fair value that you can mutually agree on.
What Happens If You Don’t Repay the Loan in 30 Days?
Sometimes, people find themselves unable to repay their loans in 30 days. If you can’t pay back your loan within the 30-day loan condition, there are a few options available to choose from.
- First, you can forfeit your item to the pawnshop. If you decide to do that, you don’t owe the pawnshop anything. They will own your item and resell it to recoup the cash they loaned you.
- If you need a little extra time, your second option is to ask for an extension on your loan. The lender will extend your repayment period for another 30 days, and you’ll owe any additional accrued interest.
One of the best parts about getting a pawn loan is that you don’t have to worry about it affecting your credit score. If you fail to repay your loan, the only negative consequence is that you won’t get your item back. You can use pawn loans to avoid harming your credit score.
Best Items to Bring as Collateral
If you’ve ever set foot in a pawnshop, you’ve seen they sell a wide range of items. You can bring almost anything to a pawnbroker to sell or offer as collateral, but some are worth more than others. Here are some examples of the best pawn loan collateral.
- Jewelry: Gold, silver, platinum and diamond jewelry are ideal collateral items to bring to a pawnshop. If you need a more substantial loan, these will likely appraise for a high amount. You can bring in watches, rings, necklaces, earrings or bracelets.
- Cars: Cars and motorcycles will also provide you with a large cash loan offer. Pawnshops will accept cars in good condition and offer you a fair price as a pawn loan.
- Handbags: Designer handbags in good condition make excellent collateral.
- Televisions and electronics: You can use electronics as your collateral items, such as TVs, tablets, laptops and cellphones.
- Firearms and gun accessories: Consider using guns and accessories as your pawn loan collateral. Pawnshop brokers will inspect firearms to ensure their quality and keep them safe and protected during the loan period.
- Musical instruments: Pawnshops are happy to accept quality instruments as your collateral. Pianos, flutes, guitars, keyboards and drums are excellent items to bring for a pawn loan.
- Tools: If you own tools in good condition, you can use them as collateral. Whether you recently finished working on a specialized project or have excess equipment lying around in your shed, bring them to the pawnshop to see how much a broker will appraise them for.
If you bring receipts or original paperwork along with your items, that documentation might net you a higher appraisal. Remember, you can bring many other items that didn’t make this list to a pawnbroker to ask about using them as collateral for a loan.
Considering a Pawnshop Loan
Now you know why pawnshops are an excellent place to get a loan if you need cash and don’t want to take the time to go through a traditional loan process. Other than providing money quickly, what are some reasons you should consider a pawnshop loan?
One notable bonus is that you can receive multiple loans simultaneously. It can be complicated to take out a series of small loans from a bank or credit union, especially if you worry about your credit score taking a hit if you forget to repay one of them. If you bring several different collateral items to the pawnshop, you might receive pawn loans for all of them.
Contact The Vault Jewelry and Loan
It’s crucial to be familiar with your financial options are in case of emergencies or if your less-than-perfect credit disqualifies you from a conventional bank or credit union loan. Unexpected circumstances can arise anytime, and it’s helpful to know you have a secure way to get money without necessarily having to sell any of your belongings.
If you own some items you want to use as collateral for a cash pawn loan, visit The Vault Jewelry and Loan. We have experience in giving loans ranging from $10 to $100,000, and we are proud to buy, sell and pawn luxury items and deliver high-quality service. When you bring in your possessions, one of the experts on our team will appraise them and offer you a fair loan amount on the spot.
Find your local store today and visit The Vault Jewelry and Loan for your next pawn loan, or browse through our vast selection of luxury items.

Jamie Furman
James (Jamie) F., is the manager of our Centerpointe Way location in Woodbridge, VA. With over 14 years in the pawn business, he is an expert in Diamonds, Gold, and Luxury Watches. He is fluent in Spanish and English and enjoys helping customers’ find the item they want at a great deal. Banks and Big Box stores have convinced many that new and expensive is the only way to buy. He aims to change that paradigm and provide exceptional service and quality products at a bargain price to every person who walks through our doors.