Pawnshop Loans for July 2024

Pawnshop Loans
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Rating by Finanso®

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
100.00 – 5000.00 $

Interest rate

from 0.05 %

Loan term for the financial product

5 days – 3 months
Personal Loans
Rating by Finanso®

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
2000.00 – 100000.00 $

Interest rate

6.34 – 35.89 %

Loan term for the financial product

2 months – 72 months
Pawnshop Loans for July 2024

A pawnshop loan is one of the most common types of secured loan. This loan requires collateral, and the loan amount directly depends on the value of the pawn. If the borrower pays the loan in full, the pawnshop returns the pawn. If the borrower has problems with the loan payment, the borrower's pawn becomes the property of the pawnshop.

According to the National Pawnbrokers Association, the average pawnshop loan in the US amounts to approximately $150, with a repayment period of around 30 days. However, an installment loan can be considered for those seeking a potentially more affordable borrowing option.


  1. Collateral-based. The primary advantage of pawnshop loans is that borrowers are not required to go through credit checks or provide proof of income. The lender assesses the value of the collateral and offers a loan based on its appraised worth. This feature enables individuals with a poor credit history or no regular income to access immediate cash when needed.

  2. Variety of accepted collateral. Pawnshops typically accept a wide range of items as collateral, including jewelry, electronics, musical instruments, antiques, luxury goods, and even vehicles. The value of the collateral determines the loan amount offered, and the item is held as security until the loan is repaid.

  3. Quick and convenient process. Pawnshop loans are known for their straightforward and speedy processing. Borrowers can visit a pawnshop with their collateral, provide identification, complete the necessary paperwork, and receive cash immediately. Unlike traditional loans, which often involve lengthy approval processes, pawnshop loans can be obtained within minutes or hours.

  4. No impact on credit score. Pawnshop loans are collateral-based and do not affect the borrower's credit score. Regardless of the borrower's credit history, the loan is secured by the collateral rather than personal creditworthiness. This makes pawnshop loans an attractive option for individuals who are concerned about further damaging their credit scores or have been denied loans from traditional financial institutions.

  5. No obligation to repay. Unlike traditional loans, pawnshop loans do not impose an obligation to repay the loan. Suppose a borrower is unable to repay the loan and interest within the specified timeframe. In that case, the collateral is forfeited, but there is no negative impact on the borrower's credit history or future ability to obtain loans.

  6. Confidential and private transactions. Pawnshop loans provide a discreet borrowing option, as the transactions are private and confidential. Borrowers do not need to disclose the purpose of the loan or their financial situation, ensuring a level of privacy that may not be available with other lending institutions.

Pros and Cons of Pawnshop Loans


  • There is no legal requirement to repay pawn shop loans. Pawn shop loans work so that pawn shop doesn't oblige the borrower to pay the loan. The borrower can get quick cash for some value and is not obliged to buy it back. No one will sue the borrower for non-payment of a pawn shop loan, and the borrower will not face debt collectors. A pawn shop will simply sell the collateral for more than the redemption price and get its profit. According to data from the National Pawnbrokers Association, 15% of borrowers don't repay pawnshop loans.

  • Pawn shop loans can help pay off another personal loan. Sometimes, taking a pawn loan may be cheaper than paying a fine or late fee for a credit card or other personal loan. In such cases, borrowing money at a pawnshop and getting collateral back after the next payday is better than paying a late payment penalty on another loan. The late fee for some loans can reach up to $40, and credit cards can accumulate a penalty APR that will greatly increase the amount of the borrower's debt.

  • A pawn loan is suitable for borrowers who cannot be qualified for a conventional loan. Pawnshops have no requirements for credit scores and don't make a credit check with credit bureaus. The borrower doesn't even need to prove the existence of income. For borrowing money in a pawnshop, it is enough for borrowers to have valuable collateral with them. For this reason, this loan is great for borrowers with a limited credit history or without it at all or lack a permanent income. Not paying such a loan will not affect the borrower's credit score since they are not obliged to pay the loan.

  • Instant receipt of funds. This type of loan allows the borrower to receive cash instantly. Payday loans give instant access to money but can be much more expensive than pawn loans. To receive a pawn loan, the borrower doesn't need to confirm the income, and they will not feel pressure regarding repayment.


  • A pawn loan is more expensive than other personal loans. Getting a pawn shop loan is a simple but expensive process. This loan is one of the most expensive. For example, payday loans usually have an APR near 400% to 700%. Although they don't have APR and interest rates, Pawnshop loans have an expensive one-time commission for taking a loan. If we translate the indicator of such a commission into the APR indicator, it can reach up to 1300%, several times more than an expensive payday loan.

  • The loan term is too short. The repayment period of such a loan is usually from 30 to 60 days. And even considering the grace period, this period is quite short. Not every borrower can pay the principal loan amount in full. Some borrowers want to get the collateral back but don't have time to collect the amount quickly.

  • Pawnshops value collateral much lower than the real value. In pursuit of profit, Pawnbroker will evaluate the value brought by the borrower several times cheaper than the market price. First, they will call the resale value lower than the usual price. Then they will give the borrower a loan in the amount of 25%-60% of the resale value. Thus, the borrower's collateral loses a lot in price in the pawnshop.

  • The risk of losing collateral. The main drawback of any secured personal loan is the risk of losing collateral. The borrower should take out such a loan only in case of an emergency since the risk of losing a valuable thing increases due to the short loan repayment period.

How to get a Pawnshop Loan

Before obtaining a pawn shop loan, it is important for prospective borrowers to ensure that the item they intend to provide as collateral has a high resale value. Since many borrowers do not repay their pawn loans, pawnshops sell the collateral to recoup their losses. Therefore, the collateral should be easily sellable to others, such as jewelry, musical instruments, or electronics.

When assessing the value of the collateral, pawnbrokers will ask the borrower questions to determine its worth and whether it may be stolen. Unfortunately, some thieves attempt to sell stolen items at pawnshops. Borrowers have the option to either sell the item outright or pawn it for a loan.

Pawnshops prioritize profits, so borrowers should not expect a loan amount exceeding 60% of the collateral's resale value. Some pawnbrokers may offer even smaller loan amounts, such as around 25% of the resale value. It is worth noting that the resale value is typically lower than the item's market value. Pawnshops do not charge annual percentage rates (APR) or interest rates, unlike traditional loans. Instead, they apply a one-time finance fee. The specific fee structure may vary depending on the state. When presented as an APR, these fees can reach up to 1300%, making pawnshop loans comparatively expensive.

Once the borrower agrees to the loan terms, they can receive immediate cash along with a pawn ticket. Keeping the pawn ticket safe is crucial, as it is required to reclaim the pawned item. The typical payment period for a pawnshop loan is 30 to 60 days. Some pawnshops may offer a grace period of 30 days, extending the loan term.

Requirements and Conditions

  • Collateral. The borrower must provide an item of value, such as jewelry, electronics, or other valuables, as collateral for the loan. The collateral should have a high resale value and be easily sellable by the pawnshop.

  • Ownership verification. The borrower needs to demonstrate legal ownership of the collateral. This may involve proof of purchase, original receipts, or any other documentation establishing ownership.

  • Identification. Borrowers must present valid identification documents, such as a government-issued ID or driver's license, to verify their identity.

  • Loan amount. The loan amount is typically a percentage of the collateral's appraised resale value, which varies by pawnshop. The maximum loan amount is generally around 60% of the collateral's value, although some pawnshops may offer lower percentages.

  • Finance fee. Instead of interest rates or APR, pawnshops charge a one-time finance fee. The fee structure varies by state and pawnshop, and it is important for borrowers to understand the specific fee associated with their loans.

  • Loan term. Pawnshop loans usually have a fixed loan term, which is the period during which the borrower can reclaim their collateral by repaying the loan. The average loan term ranges from 30 to 60 days, although some pawnshops may offer longer terms.

  • Payment options. Borrowers have the flexibility to repay the loan and redeem their collateral within the loan term. Payment options may include paying the loan amount plus the finance fee in a lump sum or making partial payments and renewing the loan by paying the finance fee.

  • Pawn ticket. When the loan is granted, the borrower receives a pawn ticket that serves as proof of the transaction. The pawn ticket is essential for reclaiming the collateral and should be kept in a safe place.

  • Collateral forfeiture. If the borrower fails to repay the loan within the agreed-upon term or extension period, the pawnshop has the right to keep the collateral and sell it to recoup the loan amount and finance fee. The borrower does not incur any further obligations or negative consequences on their credit score.

Best Places to get a Pawnshop Loan

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  • Pawn America. With multiple locations across the United States, Pawn America offers pawnshop loans and a wide range of merchandise for sale. They accept various items as collateral and provide competitive loan terms.

  • EZPawn. EZPawn operates numerous locations throughout the United States, offers pawnshop loans, and buys and sells various items. They have a straightforward loan process and provide fair loan amounts based on the collateral's value.

  • Cash America Pawn. Cash America Pawn is one of the largest pawnshop chains in the United States. They offer pawn loans and have an extensive inventory of items for sale. They accept a variety of collateral and provide reasonable loan terms.

  • National Pawn & Jewelry. National Pawn & Jewelry is a well-established pawnshop chain with locations in multiple states. They offer pawn loans and sell a wide range of items. They have a reputation for fair loan amounts and professional service.

  • Uncle Dan's Pawn Shops. Uncle Dan's Pawn Shops have been serving customers in Texas for over 30 years. They offer pawn loans and have multiple locations in the state. They accept various items as collateral and provide competitive loan terms.

  • Premier Pawn. Located in California, Premier Pawn offers pawnshop loans and a vast selection of merchandise for sale. They provide a transparent loan process and strive to offer fair loan amounts based on the collateral's value.

  • City Loan Pawn Shop. City Loan Pawn Shop, based in California, specializes in providing pawnshop loans. They have a quick and straightforward loan process and accept a wide range of items as collateral.

  • Value Pawn & Jewelry. Value Pawn & Jewelry has multiple locations in Florida, Georgia, and Alabama. They offer pawn loans and sell a variety of items. They have a reputation for fair loan terms and quality customer service.

  • Gold & Silver Pawn Shop. Located in Las Vegas, Nevada, Gold & Silver Pawn Shop gained popularity through the reality TV show "Pawn Stars." They offer pawnshop loans and have a unique selection of items for sale. They are known for their expertise in evaluating items and providing competitive loan amounts.

Ways to Receive the Money

Pawnshops typically offer different methods for borrowers to receive money from a pawnshop loan. The specific options may vary depending on the pawnshop's policies and local regulations. Here are the common ways to obtain the funds:

  1. Cash. Pawnshops often provide cash as the primary method of disbursing loan proceeds. Borrowers can receive the loan amount in physical currency, allowing for immediate access to the funds.

  2. Check. Some pawnshops may offer the option of providing loan proceeds in the form of a check. This can be convenient for borrowers who prefer not to carry large amounts of cash or who may need to deposit the funds into a bank account.

  3. Prepaid debit card. In certain cases, pawnshops may issue loan funds onto a prepaid debit card. This card can be used like any other debit card to make purchases or withdraw cash from ATMs.

Things to Pay Attention to

When choosing a suitable pawn shop lender, the borrower needs to pay attention to several important aspects.

The most important factor when comparing lenders is the size of a one-time finance charge. Different pawnshops may require different fees. The borrower is recommended to look for a pawnshop that offers the most inexpensive services since the loan itself is expensive, and it is profitable not to have a large overpayment.

It is also important for the borrower to determine whether the pawnshop offers loan extensions or renewals. Some pawnshops may extend the term loan at the request of the borrower. The borrower can pay interest and renew the loan by getting a loan for 30 to 60 days. At the same time, the deadline for payment of the principal amount is postponed to the end of the new loan term. If the borrower doesn't want to lose the thing left as collateral, they need to look for a pawnshop that will agree to extend the loan term or renew the loan.

Another important factor to consider is the loan-to-value (LTV) ratio. In pursuit of profit, pawnshops can offer borrowers a much smaller loan amount than the real value of the collateral. The borrower should skip pawnshops that offer 25% of the item's resale value, and it is best to look for a pawnshop that can offer up to a 60% loan-to-value (LTV) ratio. However, the borrower should remember that the loan-to-value (LTV) ratio is also affected by the condition and resale potential of the collateral.

Online lenders don't offer this type of loan. The borrower cannot quickly pre-qualify for many loan offers from different lenders and compare the terms. To compare loan offers, the borrower will have to come to pawnshops in person and find out the details of loan conditions.

Also, the borrower should familiarize themselves with state laws since pawnshops work differently in each state.

How to Repay a Pawnshop Loan

  1. Know the loan terms. Familiarize yourself with the loan terms, including the repayment period and any additional fees or charges. Understand the deadline for repaying the loan and the process for reclaiming your collateral.

  2. Gather the necessary funds. Set aside the amount needed to repay the loan, including the principal amount and any accrued interest or fees. Ensure you have sufficient funds available to fulfill the repayment obligation.

  3. Visit the pawnshop. Return to the pawnshop where you obtained the loan. Bring the required documents, such as your pawn ticket or any identification needed to verify your identity.

  4. Inform the pawnshop staff. Notify the pawnshop staff that you are ready to repay the loan and retrieve your collateral. They will guide you through the necessary steps and paperwork.

  5. Pay off the loan. Present the funds required to repay the loan in full. This typically includes the principal amount borrowed, accrued interest, and additional fees or charges specified in the loan agreement.

  6. Retrieve your collateral. Once the loan is fully repaid, the pawnshop will return your collateral to you. Ensure you receive the item and any accompanying documentation or receipts associated with it.

  7. Keep records. Safeguard all relevant documents, such as the pawn ticket, receipts, and proof of loan repayment. These records serve as proof of your ownership and can be valuable in case of any future issues or disputes.


  1. Traditional secured loans. Borrowers can explore traditional secured loans, which require collateral similar to pawnshop loans. Banks or credit unions typically offer these loans and may have lower interest rates and longer repayment terms compared to pawnshop loans.

  2. Car title loans involve using the borrower's vehicle as collateral for the loan. The lender holds the car title until the loan is repaid. Car title loans typically allow borrowers to access larger loan amounts based on the value of their vehicle.

  3. Credit cards. Borrowers with credit cards can utilize them for short-term financing needs. Credit cards provide a revolving line of credit, allowing users to make purchases or obtain cash advances. However, it's important to consider the interest rates and fees associated with credit card cash advances, as they can be higher than traditional loans.

  4. Personal loans. These are unsecured loans that borrowers can obtain from banks, online lenders, or credit unions. These loans do not require collateral but are based on the borrower's creditworthiness. Personal loans often have fixed interest rates and longer repayment terms compared to pawnshop loans.

  5. Payday alternative loans (PALs): Offered by some credit unions, PALs are small, short-term loans designed as an alternative to payday loans. PALs have lower interest rates and more favorable terms than typical payday loans, providing a regulated and affordable borrowing option.

  6. Online installment loans. Online lenders offer installment loans that can be accessed quickly and conveniently. These loans often have shorter terms and higher interest rates than traditional loans, so carefully considering the terms and costs is crucial.

Editorial Opinion

Pawnshop loans can be a double-edged sword, offering both advantages and disadvantages to borrowers. On the one hand, these loans provide a lifeline to individuals who may have limited access to traditional credit due to low credit scores or lack of income verification. The main benefit of pawnshop loans is that borrowers can secure a loan solely based on the value of their collateral without the need for extensive paperwork or credit checks.

However, it is also essential to consider the drawbacks of pawnshop loans. The interest rates and fees associated with these loans are often higher than those of traditional lenders, which can result in substantial costs over time. Additionally, if borrowers are unable to repay the loan within the agreed-upon period, they risk losing their collateral, which can be emotionally and financially distressing.

Ultimately, the decision to pursue a pawnshop loan should be based on an individual's specific circumstances and financial needs. While these loans offer quick access to cash without strict eligibility requirements, it is crucial for borrowers to thoroughly understand the terms, costs, and potential risks involved. Exploring alternative lending options and seeking financial advice can help borrowers make informed choices and find the most suitable solution for their unique situations.


Do pawn shops offer loans?

Yes, pawn shops offer loans against valuable collateral. The borrower can come to the pawnshop with a valuable thing, such as jewelry, electronics, and musical instruments and borrow money by the value of the thing brought. The pawnbroker will ask the borrower a few questions about the price and origin of the item in order not to deal with stolen goods. The pawnbroker will evaluate the item and offer the borrower a loan of 25% to 60% of the resale value of the collateral. The credit score and the borrower's income level are not checked. The term of such a loan is usually from 30 to 60 days.

What's the most a pawn shop will loan?

The loan amount directly depends on the cost of the collateral. The pawnshop employee evaluates the item's condition and the resale potential and makes the final decision on the loan amount. Since profit is important to the pawnshop, the borrower should expect the loan amount to be several times less than the market value of the things they brought. The loan amount varies depending on the state, but pawnshops usually offer 25% to 60% of the resale value. The resale value is less than the market value of the item.

Is a pawnshop loan ever a good idea?

A pawn shop loan is perfect for those borrowers who urgently need money for emergency spending. They must be sure they will repay the loan within the next 30 days. Pawn shop loans may also be suitable for borrowers with a low credit score or insufficient income to get another type of loan. Even payday loans require a certain level of income, while pawnshop loans require nothing but valuable collateral.

Is it better to pawn or loan?

A pawn shop loan is a suitable option only if no other type of loan is suitable due to the borrower's bad credit history, insufficient income, or obtaining money on another loan is too long. If the borrower has fair credit and a confirmed stable income, another personal loan will be a much better option than a loan from a pawnshop. A traditional loan has a much smaller APR and allows the borrower to get a large loan amount, often without collateral.

Is a pawnshop a bank?

No, a pawnshop is not a bank. While both institutions involve financial transactions, there are fundamental differences between them. A pawnshop primarily operates as a lending and retail establishment where individuals can obtain short-term loans by providing collateral and purchasing or selling various items. The main function of a pawnshop is to provide loans secured by physical assets. In contrast, banks are financial institutions that offer a wider range of services, including deposit accounts, lending services, investment opportunities, and other financial products. Banks are subject to specific regulations and are typically equipped with comprehensive banking systems to facilitate various financial transactions and services.