If you need some quick cash and don’t want to wait for a credit check, pawning an item is a simple way to get a loan without the long approval processes. A pawn loan lets you use your personal belongings as collateral. You can walk into a pawn shop, get an appraisal, and walk out with cash in minutes.
At A-OK Pawn and Jewelry, we offer private and confidential pawn loans in Wichita, KS.
But how do pawn-shop loans work, and what happens if you can’t repay in time?
When You Should Choose To Get a Pawn Loan
A pawn shop loan is a secured loan where you offer an item as collateral in exchange for some fast cash. Our pawnbroker appraises your item to determine the loan amount and then gives you an offer based on their valuation of the item’s condition, demand, and potential for resale.
Pawn shop loans are a great alternative to other lending options because there’s no credit check or lengthy approval process. Like any loan, interest applies, but pawn loans usually have a shorter repayment period of about 30 days.
If you repay the loan plus interest within the agreed timeframe, you can reclaim your item. If you don’t repay in time or decide not to, you can renew the loan or allow the pawn shop to sell your item.
What Happens When It’s Time To Repay?
When you take out a pawn shop loan, you have two options at the end of the loan term: redemption or default.
Redemption happens when you repay the loan amount plus interest within the agreed timeframe. Once you make the payment and present your pawn ticket, you’ll get your item back.
Default occurs if you choose not to repay the loan or simply can’t. In this case, the pawn shop keeps the item and sells it to get their money back.
Repay the Loan or Walk Away – Either Way, There’s No Impact On Your Credit
One of the biggest benefits of a pawn shop loan is that there’s no credit damage or debt collection if you can’t repay it. Unlike other loans, you’re not locked into a repayment obligation. Instead, the pawn shop simply keeps the item you used as collateral and sells it to recover the loan amount.
At A-OK Pawn and Jewelry, all transactions are private and confidential. We don’t report your loan history to credit bureaus or send debt collectors after you. Whether you repay the loan or not, your credit score stays the same.
Get Fast Cash and Find Great Deals at A-Ok Pawn and Jewelry
A pawn shop loan is a great way to get quick cash without the hassle of credit checks or long approval times. Bring in an item, get an offer, and walk out with cash in minutes.
If you’re still asking yourself, “How do pawn-shop loans work?” visit our 47th & Broadway store (316-529-8901) or our Oliver location (316-440-7445). Find great deals anytime at shop.aokpawnandjewelry.com.
