What Is a Pawn Loan?

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While many people think of pawn shops as places to buy and sell valuable items, there is much more to them than that. Pawn loans are one of the major features of pawn shops, and today, we will be going over some of the basics you should understand about them.

What Is a Pawn Loan?

Pawn loans are one option for people who don’t qualify for conventional loans or who just need a quick, easy way to get cash. They are also known as collateral loans, a name that hints at how they work. To get a pawn loan, you will need to bring in an item or several items, such as jewelry, electronics, yard tools, power tools, or collectibles. From there, we will appraise the item. Depending on the value of the item, we may make you a loan offer, which is usually a cash amount that is a percentage of the item’s value. If the loan is acceptable to you, you will leave your item at our pawn shop as collateral and pay back the money you borrowed over a given period. Once you have paid back the loan, your item will be returned to you.

With pawn loans, no credit check is required and there is no application process. In addition, failing to repay your loan won’t impact your credit score, so the only risk is losing the item you offered as collateral.

If you need to get a short-term loan instantly, you can turn to us at BLADE RUNNERS PAWN LLC in Winston-Salem, North Carolina for assistance.