Published Friday, May 24th, 2024

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Are you needing some quick cash, but worried what will happen if you can’t repay your loan? Don’t fret, Value Pawn & Jewelry is here to help!

The short answer is you will not get penalized for failing to repay your pawn loan. If you choose not to repay your pawn loan in full, you will forfeit the item serving as collateral for your loan to the pawn shop. No reporting to credit agencies, or collection efforts are made.

Let’s look at how pawn loans work and consider some tips for paying off your loan.

Understanding Pawn Loans

A pawn is a loan. You bring in something of value and the pawn shop lends you fast cash, on the spot, and holds your item.

You will then repay your loan principal plus applicable fees based on the repayment schedule provided, and you retrieve your item after you have paid in full. It’s that easy!

Pawn Loans vs. Traditional Bank Loans

A pawn shop interaction: Three adults, a Caucasian woman, a Hispanic man, and an African American man, are standing at a counter inside a pawnshop, engaging in a friendly conversation. The environment suggests a transaction or a customer service interaction.

Unlike loans from traditional lenders, pawn shops do not check your credit. Instead of relying on credit history, pawn loans are secured by physical collateral (i.e. the item of value you bring in).

Value Pawn & Jewelry will store your item safely and securely until you retrieve it following loan repayment (principal plus fees) of the pawn transaction.

How Do Pawnbrokers Determine the Value of Your Item?

The Value Pawn & Jewelry team has access to a comprehensive value database that shows us current resale prices for commonly traded items. Not all pawn stores have this.

If your item is not included in this database, we will research websites like eBay to better understand its current market rates and make you an offer based on those rates.

We may also connect with qualified appraisers to conduct specialized assessments on high-value items such as jewelry, antiques, or historical artifacts.

Who Can Qualify for a Pawn Loan?

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In most states, anyone 18 or older with a valid government-issued ID can get a pawn loan. These are different than traditional loans so be sure to check with your pawn shop to understand the laws in your state, as certain states may require a person to be older than 18 to qualify for a loan.

No Impact on Your Credit Score

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When it comes to traditional bank loans, credit scores have a big say. This is another way pawn loans are different. Because your loan is secured by your tangible asset, Value Pawn & Jewelry won’t pull your credit and won't tell credit agencies if you can't repay, so your credit stays in the clear.

To Pay or Not to Pay

The choice is up to you!

To retrieve your item, simply repay the loan amount plus any fees. If you need more time, extensions and renewals are available as state law permits. Opting out of paying back the loan won't impact your credit score, and you're free to explore future pawn loans.

What Happens When You Don’t Pay Off Your Loan?

There are many reasons why you may choose not to pay off your loan. Perhaps you decide that you no longer want to keep your item or maybe you are unable to pay the loan back if money is tight.

If you choose not to repay the pawn loan, you'll forfeit the item you pawned to the pawn shop, and they will sell it to recoup the money they loaned you as permitted by law with no penalty to you. Pawn shops do not penalize you for not paying off a pawn loan.

What Happens When You Can’t Pay Your Loan on Time, but Want to Keep Your Item?

Facing repayment challenges? Value Pawn & Jewelry often offers extensions or renewals, subject to legal provisions. However, this will involve additional fees.

Here’s more information on understanding pawn loans.

Note: extension and renewal choices vary by state, so be sure to chat with a Value Pawn & Jewelry Team Member to see what options are available at your locations.

How Extensions Work at Value Pawn & Jewelry

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You must settle all the interest you owe on your pawn loan before you can extend it. This will keep the main loan amount the same while giving the pawn shop some reassurance since they're taking on more risk by extending your loan payment schedule.

Transparent Policies

At Value Pawn & Jewelry, we present transparent policies for all pawn loans and ensure customers fully understand the loan terms and the ramifications of choosing not to repay the loan. Our goal is to ensure you are clear on item evaluations and all repayment procedures so that you leave with both peace of mind and the cash you need in your pocket.

Tips for Successful Loan Repayment

  • Review the Terms

Before pawning an item, carefully read and understand the loan agreement (also known as the pawn ticket) terms. Ask questions if you have any so you can successfully plan for your loan repayment.

  • Communicate With Your Pawn Shop

If you can't repay on time, don't avoid the issue. Contact Value Pawn & Jewelry and explain your situation. They may be willing to work with you to find a solution.

  • Consider Extensions

If you need more time to repay and want your item back, inquire about extending the loan term by paying the accrued pawn service charge and fees. This can give you the flexibility you need.

  • Plan Ahead

Before pawning an item, ensure you have a clear plan for repaying the loan. Consider your finances and how you'll manage the repayment within the agreed-upon timeframe.

Pawn Loans Are EZ!

A couple with digital devices: An African American woman and a man of Asian descent are sitting together on a couch, looking at a tablet while the woman holds a credit card. Both are smiling and appear engaged, suggesting a pleasant online shopping or financial management session.

In summary, pawn loans offer a convenient way to get quick cash, with no penalties for non-repayment. By embracing transparency and prioritizing customer well-being, Value Pawn & Jewelry ensures a comfortable and friendly experience.

Remember, Value Pawn & Jewelry is your partner in navigating financial challenges, offering years of expertise in successful loan repayments!


Item evaluation and the amount of cash offered on purchases or pawn transactions is at the sole discretion of the Pawnbroker. Conditions apply. Pawn transactions are loans subject to terms and conditions, including fees. Please see a Team Member for additional information.