Online Pawn Shop Loans

Online Pawn Shop Loans
  • LOANS UP TO $ 5000
Last Updated 02.11.2022
processed loans
happy customers
instant approval

Often people require cash, but they cannot find a way to arrange the funds on time. Such situations can arise due to various reasons. With a shortage of money comes insecurity, imbalance, and stress in life. Some major cases where one might require to visit pawn shops are:

  • If your health has deteriorated recently and you need to see the doctor or go for an operation, you might require a large sum of money.
  • If you have got many items to sell and know that the commodities can help you with money, going to a pawn shop will be ideal.
  • If you are broke but you can easily resolve the situation by selling away some unwanted goods, then, too, you can do it here.
  • If your car is damaged and you need money to repair it, getting some money in exchange for a few commodities will help.
  • If you want to free up some space in the house by selling unwanted goods, then, too, the place will come in handy.

Traditional loans are no more worth it because they involve too much paperwork and take up time. Instead, one can easily switch to pawn shop loans for quick, hassle-free funds. Even if you have a poor credit score, these cashouts are here to help, making it better than the strict traditional loans. To learn more about such credit advances, keep reading until the end!

Pawn Shops Overview

It is a place where one goes to sell some commodities in exchange for cash. The goods are kept securely until the money is paid back and the items are handed over to the owner. There is a specified due date given within which the amount must be repaid along with interest. It is the simplest answer to what is a pawn shop. If you want to understand these places better, then reading the glossary given below will help:

  • Pawnbroker: This is the shop owner who is in charge of all the goods sold. He keeps them safe until returned to the owner. Pawnbrokers are also involved in trading commodities by reselling them.
  • Pawnshop: As explained above, this is the place where the goods are sold in exchange for cash.
  • Pawn transaction: This agreement states the goods being taken from a person in exchange for cash. The security terms and conditions plus the due date are mentioned in this transaction document.

We have jotted down the working method of pawn shops for your better understanding. Take a look:

  • You have to come to the place and keep your assets here as collateral security for the cash you take in exchange. This step of the working method is known as pawning.
  • The pawnbroker will give you the money in exchange for the commodity.
  • When you pay back the borrowed money plus the interest, the pawnbroker will return you the commodities.
  • If you cannot pay back the money, then the pawnbroker will not release the goods kept as collateral security.

Unlike payday loans, this one is far simpler and takes less time because you will not have to go through complicated paperwork or credit checks here. Instead, the money will be given solely based on the overall value of the commodity you kept as collateral security. The downside of borrowing from such places is that you need to pay a higher interest rate on the borrowed sum. But that’s okay because you get the cash instantly, which is not possible if you opt for other types of loans.

» COMPARE: Installment Loans

What Is Meant By a Pawnbroker?

To know how these lending firms work, you must understand what a pawnbroker is. A pawnbroker is simply the owner of the pawn store who takes the goods as collateral security in exchange for the cash handed out to the customers. This person is responsible for keeping the commodities safe unless the money is returned. He can resell the items if the money is not paid back on time, but it must be stated in the agreement. So, make sure you read the agreement well before taking the money!

Pawn Shop Working Mechanism

Many customers go for this borrowing method without even knowing how pawn-shop loans work. If you are also confused, then we have got you covered. These loans are governed by three major laws- local laws, federal and state. The federal laws have additional branches like The Patriot Act, the Trust and Transparency in credit, and the equal chances of borrowing. With proper guidance, understanding the overall process of online pawnshop loans is not that hard. Read below to know more:

  • To get the loan, you need to carry an asset to the pawnshop. Make sure that the commodity is a bit expensive to get a good amount against it.
  • The pawnbroker will collect the commodities to set a monetary value for them.
  • The monetary value that the broker sets is not always close to the true worth of the product. It is usually a bit less.
  • The broker will let you know the cash amount value you can get against the commodity.
  • If you like the offer, you can accept it, submit the commodity, sign the product transaction document and take the money. You will then return on the due date to repay the cash along with interest and take your goods back.
  • If you do not like the offer, you can move out and look for some other options. You can also opt to bargain with the broker, but that’s not always a good idea, especially if the broker has a fixed rate policy.

What Can You Sell at a Pawn Shop?

One of the major questions that arise is – what do pawn shops buy? You must know the answer because you probably cannot walk in with any commodity and sell it to a broker. So, here’s a list of items that are worth trading in a pawnshop:

  • Diamonds
  • Gold or silver
  • Expensive jewelry
  • Computer
  • Car or other vehicles
  • Watches
  • Television
  • Motorcycle

These are a few items that you can keep as collateral security goods. There are more on the list, and you must get in touch with the broker to know what all you can sell!

How Much Value Can You Get for an Item at a Pawn Shop?

To answer your question, how much do pawn shops pay? We want to start by saying that the monetary value of the loan does not depend on your net income or credit score. The money you will receive from the broker depends on the commodity you decide to sell in the pawnshop online. The interest rates also depend on the goods you sell, so it will be better to check that out with the shop.

The interest rate of these loans is quite high and does not depend on your credit score at all. The added advantage is that the lender will not show any interest in your monthly income. If you have a low income, then, too, the money will be granted to you instantly. The interest rate of pawnshop loans in most places are:

  • California capped 2.5%/ month
  • New York capped 4%/ month
  • Texas capped $20/ month
  • Illinois capped 3%/ month
  • Florida capped 25%/ month
  • Pennsylvania capped 2.5%/ month
Get a Payday Loan You Need
Get a Payday Loan You Need
Get a Payday Loan You Need

What Is the Mechanism Using Which Pawn Shops Determine the Value of the Product?

If you are wondering how do pawn shops determine the value of the commodities sold, well, then they do it by keeping a few simple factors in mind:

  • The price depends on the original cost of the commodity. It is usually slightly less than the actual value.
  • It also hugely depends on the condition of the product. If it is torn and damaged, then do not expect to get a good value.
  • If you sell something with a good market worth, then the pawnshop loan value will be higher.
  • Luxury items like jewelry or stones will be treated with greater priority.

How Long Can the Pawnbroker Hold Your Item?

There is no rule when it comes to how long a pawn shop holds your merchandise. The typical tenure is around a month, but that depends on the contract between you and the pawnbroker. Some brokers also offer a grace period if you fail to return the money within the repayment period. It is recommended that you always talk about the prices clearly before signing any transaction document. The terms and conditions must clearly state the loan value and the interest rates.

What Is the Process of Getting a Loan from a Pawn Shop?

The process of how to get a loan from a pawn shop is given below:

  • A pawn shop loan works in a simple method. You need to bring some assets, keep them as collateral security with the broker and take money in exchange. Know that not all commodities are worth enough for the loan. So, better check it with the broker. If the pawnbroker thinks that the asset is sellable, he will give you an offer along with the interest rates. If you agree with the request, take it and accept the cash or find some other pawn shop.
  • You can also permanently sell the product if you want. But most lenders do not agree to this because this decreases their profit hugely. However, you can still go for this option if you do not want that good anymore.
  • The broker will share a bill with you. Ensure that you keep that bill safely because that will have all the information about the goods kept and the money exchanged. You will need to show that paper while repaying the money and taking back the commodity.

What Should Be the Minimum Age of the Seller?

One of the most Googled questions related to pawn shops is how old you have to be to sell something at a pawn shop. Well, in all offline or online pawn shops, you must be of 18 years of old. Anyone who is below this age bar cannot apply for a pawn shop loan. Even though there are places that give out loans even to underage borrowers, we do not recommend them because you might get into legal troubles if the law gets to know you.

Pawn Shop Loans Pros

There are several pros of opting for pawnshop loans, and our experts have laid them right below for you:

  • Unlike title loans, here, cash is granted without taking your credit score into concern. So even if you have a bad credit score, there won’t be any problem getting the money.
  • Your credit score is neither affected positively nor negatively when you opt for this credit advance.
  • The application process takes no time and can be done easily by even those who haven’t applied before.
  • It is one of the quickest ways of getting urgent cash without any hassle.
  • Even if you cannot pay back on time, your credit score will stay the same.
  • You don’t have to face any debt collector in this borrowing method.

Pawn Shop Cons

There are also several drawbacks of pawnshop loans, like the ones given below:

  • When you fail to repay on time, your goods will be sold off.
  • The interest rate is quite high and not affordable.
  • The period of the agreement is not expandable in most cases.

Alternatives Worth Trying

If you do not want to go for this lending method because of its high-interest rate, you can easily do so by trying out the other alternatives. Some of the best choices worth trying are:

  • Payday loans: These are credit advances given for a month, and the money must be paid back once you get the salary.
  • Title loans: If you get money against your car, that falls under this cash advance category.
Fast Loans With Instant Approval
Fast Loans With Instant Approval
Ready? Get approval in 5 minutes!


Justin Gale
Justin Gale
I am very happy that I chose this site! They credited the loan money to my account within just one day.
Diane Pope
Diane Pope
I recommend this site to all those seeking bad credit loans at a cheap interest rate.
Henry Hutton
Henry Hutton
I was glad to see how perfect this lending firm is in every aspect. They approved my loan within just a few hours!
Gregg Taunton
Gregg Taunton
My loan was stuck in banks for years, but this firm approved it in just one day. I cannot be more grateful!
Diane Kent
Diane Kent
What a great site! Be it the interest rate, approval time, or customer support team; I loved it all!
Phillip David
Phillip David
No other site comes even close to the fast approval speed offered by
Rebekah Keller
Rebekah Keller
Finally found a lending firm that offers genuine and guaranteed approval loans without any extra fees!
Apply Now

Applying does NOT affect your credit score!

No credit check to apply.