Pawn Made easy

How to Pawn


When deciding to pawn your personal property it is important to understand the process and what your obligations are to the contract.   You may be pleasantly surprised to learn that the process is quite simple and your obligations minimal.    Below is a description of the process and what you can expect from your Pawn Broker.

  1. Determine the amount of money you need and the item(s) you feel will best match the pawn broker's willingness to loan the amount you need.
  2. Take your items to the store of choice and present them for evaluation and appraisal.  The pawn broker will determine the amount he/she can loan based on the condition, desirability, and current market value of your property.
  3. The loan contract is simple and without the need for credit or background checks.  Once you agree on the amount of the loan, the pawn broker will present you with the loan amount, the interest and fees associated with the loan, and the amount of time you have to pay back the loan.
  4. The pawn broker will take your property as collateral to secure the money you were loaned.  It is the broker's responsibility to securely store and hold your property until such time the loan is repaid.  
  5. Most pawn contracts are structured wherein the  individual is to pay the interest and fees at the end of 30 days up to 90 days.  You can pay off the full amount of the loan at anytime prior to the end of the contract and your property will be returned to you.
  6. If you fail to make payments, or can not afford to pay off the loan, then do not despair.  No report will be made against your credit history and no financial risk or obligation is required on your part.  Simply notify your broker that full payment can not be made and the shop will take your property as collateral and sell it to repay the money that was loaned.   You  risk losing the item that was pawned but you have no obligation to repay the money you received in exchange for its pawn.

A few hints on how to get more money for your property*:

  • Make sure the item(s) are clean and in good working order;
  • The items should be complete and without parts or pieces missing;
  • Brokers are looking for items that are highly desirable and marketable;
  • A positive attitude and honesty goes a long way to building trust;
  • Regular visits establish a  good working relationship with the broker.

* You can usually expect about 35%-50% of market value on your property as principal on your loan.  It is important to consider that the broker is assuming all the financial risk and must hold your items in storage.  Also, market conditions and trends can change rapidly causing values to drop.  

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