What Happens to Your Pawned Items?
A pawn loan is a great way to borrow some extra cash when you need money urgently – without affecting your credit score! When you pawn an item of value, you receive the cash right away and then you’ll have the chance to redeem your item when you pay the pawn loan back plus the interest rate. But what happens if you are unable to pay the pawn loan back? What will happen to your pawned item? We’ve got the information you need!
How to Get a Pawn Loan & What Are Your Options
First, find a reputable pawn shop near you. Loans are based on the value of your item, not your credit rating or pay schedule. A typical pawn loan has a term length of 30 days, plus a 30-day grace period. Once your loan term is ending, you’ll want to pay your loan back in full plus the small interest fee.
If you cannot pay back your pawn loan in full, including any applicable grace period, ask your local pawn shop if they offer extensions to give you extra time. You can also opt to just pay the interest to keep your account active (extending the loan period) until you are able to pay in full to receive your item back. It’s important to note that in most cases if you choose to extend your loan by just paying the interest, you may incur extra fees each time you extend. It is recommended to pay the interest plus any extra amount you want to pay towards the principal balance (or acquired amount).
If you are unable to pay your loan back in full after a period of time, you will have received the money by not paying back your loan, meaning your item will be forfeited (or owned by the pawn shop).
What if You Want Your Forfeited Item Back?
Once your item has been forfeited, in many cases the pawn shop will make it available to purchase in store by its clientele. You may try to repurchase the item at the price the pawn shop has valued it at. If the item stays available for an extended period of time, you may be able to have your pawn reactivated for the interest price due.
It’s important to ask your local pawn shop about the alternatives they offer at the time of your pawn transaction. Be informed of their policies and make sure you are prepared to follow them correctly.
Need some quick cash? Remember the Alamo, on Transmitter Road in Panama City! We provide quick confidential loans on just about anything of value. Ask about our VIP loans for small businesses, or individuals with high net worth in need of a quick cash loan! Special rates apply to VIP loans.
At Alamo Pawn Shop in Panama City, pawn loans are a quick and easy way to borrow money without a credit check or hassle. Loans are based on the value of your collateral, not your credit rating or pay schedule. A typical pawn loan has a term length of 30 days, plus a 30-day grace period. If you cannot pay back your pawn loan in full, including any applicable grace period, we offer extensions to give you extra time. You may also choose to surrender your collateral as payment in full. Stop by our shop or give us a call at 850-872-0700!