Pawn loans are a great choice when you are short on cash and don’t want to wait for a traditional bank loan or have not quite stellar credit.
A pawn loan is the signing over temporarily of a valuable item to the pawn shop for safe keeping with the agreement on a certain cash value to be decided on at the time of the transaction. The money is given to the party at hand and the item is held at the pawn shop. A payment schedule is agreed upon at that time and when it is satisfied, the person takes back possession of the pawned item.
When people pawn items rather than selling outright, it’s because they have every intention of coming back, paying off the loan, and reclaiming their items. Sometimes though, be it through decision or happenstance, or they simply forget, it doesn’t work out that way.
Q: So, what happens in the event that I don’t come back and claim my property and the loan isn’t paid in full?
A: Let’s take a look at what your payment and claim options are. The loan is typically due in 30 days, though 60 day and 90 day options may be possible as well.
1. The borrower may repay the loan to get back their item, pay the interest, and renew the loan again for another 30 days if they wish. They may also choose not to pay back the money and forfeit the property all together.
2. If you are unable to repay the loan in full when it comes due, you may pay the interest on the loan to keep the account active and renew the loan for another 30 days. You may be charged an additional fee each time you choose to renew. That amount is based on the amount outstanding, not the original loan amount.
3. If you pay late or not at all the items ownership falls to the store. There is no effect on your credit as credit is not a part of the transaction. The item may then be sold by the pawn shop.
So in short, there are several options available. Even if you do miss your window and your item goes up for sale recovery may still be possible even after the terms have expired by purchasing its new retail price. Pawn shops are also notorious for agreeing to haggle, so make an offer.
It is in the best interest of the pawn shop to keep happy customers. We never set out to keep pawned items. We prefer to keep you as a customer to return time and time again.
Have items to sell or pawn? We would love to take a look and make you an offer!
We now have two locations right here in Southwest Florida – Lehigh Acres and Naples.
Visit our showrooms today for spectacular bargains. www.firstpawn.com.
First Pawn Jewelry & Loan
889 Airport Road South, Naples, Fl 34104 | 239-434-7296
1331 Homestead Rd N, Lehigh Acres, FL 33936 | 239-369-2274
We look forward to meeting you!