What Is A Pawn Loan

A Pawn Loan is a loan that is secured by collateral held by the Pawn Broker.

st louis pawn shop - north county pawn center sign

All customers provide collateral, eliminating the need to distinguish high-risk from low-risk

borrowers.Typically, loans are small, averaging between $50 and $200, although they can be as small as $20 or as high as several thousand dollars depending on the value of the collateral.

The process is much the same as any other lending institution, with the primary difference being the use of collateral instead of credit. A pawnshop will hold and store your personal collateral item until the loan is repaid.


Understanding Pawning

Let’s start with what it doesn’t mean. It is not selling something.

A pawn loan allows you to borrow money today on your valuables without having to sell them.

A pawn loan allows you to get your valuables back after you pay off your loan.

A pawn loan allows you to extend your loan period without penalty.

A pawn loan will never hurt your credit and there is no lengthy application process to go through.


Pawning vs Selling – Why It’s Better To Pawn

1.You get to keep your item. If you think you might miss your special something or it has sentimental value, you’re better off pawning.

2.You retain equity in what you already own. Resale values for jewelry and watches are currently low.

3.Pawning allows you to get cash when you need it without selling your valuables for much less than you paid for them.


Most Pawn Shops Do Cash Loans On The Following Types Of Items

Gold & silver


Rolex, Panerai and other high-end watches

Electronics such as iPods, flatscreen TVs and car audio

Newer laptops, both PCs and Macs

Video game consoles (Nintendo Wii, PS3, XBox 360)

Tools (DeWalt, Milwaukee, Ridgid, etc.)

Musical instruments

Digital cameras

Household items

DVDs and Blu-Ray Discs